Advice re Car sold pre BR please

Angiepange

Hi,

Hoping for some advice on this, I sold my car in May this year, planning to go BR soon. I sold car at market value £3.5k , reason for selling DH got new job with company van so no longer needed to run 2 cars. I was paid in cash and as we had received advice by a debt advice co to stop paying our creditors and change bank accs ( due to big drop in income, loss of my job) I kept the cash at home.

I plan to use some of cash for BR fees and give the rest to the OR. Should I pay it into our bank account for the OR to seize, or do I just put it down as a cash asset on the BR forms? If I used some of this cash for living expenses would we get into trouble doing this (BRO/BRU) ? This has been really worrying me so hope for some advice, thanks

Angie x

Costus

Hi there, i wouldn't put that money into any bank that you owe money to.

A safer place would be in your new bank account, as it will not be touched as you don't owe them anything.
Once you have gone BR you can then safely hand over what is left from the car sale, minus your BR fees.

With regards to using the cash for living exspenses, i would tread carefully there, as you will have to justify to the OR that it was totally necessary for you to use that money.
If you are at the point of not having food to put on the table or clothes to put on your kids backs then i think that you would be able to justify that with receipts, but if you fancy a new plasma t.v. then i'm sure that the OR would take a very dim view of this.

Like i say only use that money if its your last option.

Part of what the Courts and OR look at through the BR process though is, proving through your SOA's that your can manage your finances on a day to day basis.
If you need to use this money just to get by then the Courts/OR will question, how you will get by once you have gone BR, with none of this (fall back) money to use.

BR can be refused if you are in a minus figure (not including any creditor debts) after all your essential living expenses are accounted for.

Hope this makes sense and helps you some way.

Angiepange

Costus thanks for that advice.

So its probably best to pay it in our current bank acc (we dont owe anything here) for the OR to seize it? I wasnt sure if i should have listed it under cash asset on the forms and just handed it over in cash to the OR rather than it be in the bank?

Angie x

peachyprice

You can do either Angie, whatever you're most comfortable with. If you feel it's too much temptation to dip into the cash if it's lying around put it in the bank, likewise if you thing it will get gobbled up with your household outgoings in the bank stash the cash under the mattress.

The OR won't mind how they get it, as long as they do.

Angiepange

Thanks PP appreciate the advice.

On the subject of cars, we have 1 remaining car registered in DH name but which i use as family car. DH uses company van to get to work. Im worried it will be taken off us by OR. We own it, its worth about £3k (parkers). I have just been offered P/t work as a flexi bank worker for NHS cleaning offices/clinics.

So the work isnt guaranteed, its an as and when basis, prob wont start for at least another 6-8 wks (refs,crb check,medical etc). I will need a car to do the job as it will be based all over local area mostly eves and at short notice!

I am wondering if OR will allow us to keep the car or buy it back from them on the basis that i will need it for work in the future when job is up and running? Obviously if i dont have use of a car i cant really do the job cos of hours and locations.

Im just guessing they will take it as job hasnt actually started yet and we are looking to go BR in next few weeks?

Angie x

debtinfo

Hi the OR will exempt a car if you are about to start a job. Make sure that the money from the first car goes in his bankruptcy. The reason for this is that bankruptcy is individual and looked at on its own merits. If your husband has the car and the company van then he has two vehicles and you have none. Ubder these circumstance the OR could not exempt the vehicle as he already has one. if the money is in his bankruptcy then in effect it was his car that was sold and yours that was kept i.e you both have access to one vehicle each

does that make sense

Angiepange

debtinfo wrote: »

Hi the OR will exempt a car if you are about to start a job. Make sure that the money from the first car goes in his bankruptcy. The reason for this is that bankruptcy is individual and looked at on its own merits. If your husband has the car and the company van then he has two vehicles and you have none. Ubder these circumstance the OR could not exempt the vehicle as he already has one. if the money is in his bankruptcy then in effect it was his car that was sold and yours that was kept i.e you both have access to one vehicle each

does that make sense

Thanks debtinfo.

What i am unsure about is, the car we sold was registered to me but we both drove it. The car we have kept is registered to DH but is insured in my name as i am main driver (DH is a named driver on my insurance). Will the fact the car is registered to him mean he will have to declare it as his asset? or does the fact i am main driver,insured in my name mean that i could put it on my BR form as my asset? Also if he put the car we sold on his BR form would i have to declare it on mine too?

Sorry if i sound confused:o

debtinfo

The OR does not look at who the registered keeper is to make a decision but who the OWNER is. This is determined by who stumped up the money to buy it. If it came from the joint income then i would put the money down on his bankruptcy and the car on yours, that shows them that you are not trying to cheat them

Angiepange

debtinfo wrote: »

The OR does not look at who the registered keeper is to make a decision but who the OWNER is. This is determined by who stumped up the money to buy it. If it came from the joint income then i would put the money down on his bankruptcy and the car on yours, that shows them that you are not trying to cheat them

Thanks again,

I would never try and cheat anyway, there is too much to worry about going thru BR already, trying to hide money from theOR would just be added stress.

Your info makes sense, thanks. The money for the car came from DH credit card, 2 years ago, the card is in his name but i had a card to use from his account too. We drew the money off cc, paid it into our joint bank acc and then paid in cash for the car.

I think i will put the car on my BR as i am the one who will need it for this new job and put the money left after BR fees, from the car we sold on DH BR. Everything we have done has always been joint no matter whose name it has been in, I just hope we get an OR who will allow me the car. I desperately need to bring some income in and i would hate to lose the new job before i could even start it!!

Angie x