Thinking of BR - about my car

mollyp

I've got over 40k of unsecured debt plus I'm on a mortgage thats in about 10k neg equity. I'm thinking of going bankrupt as my current DMP will take me 13 years to clear debts. Debts were incurred on loans and cards which I could quite happily afford before my husband left. I am currently living in home jointly owned with ex husband, but want to move away to rented for a fresh start. He intends to carry on paying the mortgage as it is not in arrears etc.

My car is worth 5.5k which I am aware I will not be allowed to keep. I know that the OR may allow me £1800 for purchase of another vehicle. If I sell my car before BR and use some of the money for the following things before BR will I get in trouble:
1. To pay £1000 deposit on rented house and possibly 1st months rent
2. To purchase a low value vehicle under 2k
3. To use a reasonable amount on buying essential items such as a fridge freezer, a bed, a lawnmower and possibly a cheap tv, as we will not be able to take everything from our current home as it has to be divided with my ex husband.
4. Bankruptcy fees
5. Possibly ( and least essentially) a modest holiday( or weekend away) in this country for my little girl, as I know she won't be able to have one in the next 3 years and she's been really missing out whilst I'm on a DMP.

I would account for my purchases and keep receipts etc.

Any guidance would be great.
Thankyou.xx

eklynne

No OR on earth will allow you to use funds made from the sale of a car to allow you to go on holiday. I'm not sure about anything else but I wouldn't hope for his approval.
Get yourself signed up to Freecycle for stuff like tv's, fridges etc. That website is a godsend.

nervousmother

mollyp wrote: »

I've got over 40k of unsecured debt plus I'm on a mortgage thats in about 10k neg equity. I'm thinking of going bankrupt as my current DMP will take me 13 years to clear debts. Debts were incurred on loans and cards which I could quite happily afford before my husband left. I am currently living in home jointly owned with ex husband, but want to move away to rented for a fresh start. He intends to carry on paying the mortgage as it is not in arrears etc.

My car is worth 5.5k which I am aware I will not be allowed to keep. I know that the OR may allow me £1800 for purchase of another vehicle. If I sell my car before BR and use some of the money for the following things before BR will I get in trouble:
1. To pay £1000 deposit on rented house and possibly 1st months rent
2. To purchase a low value vehicle under 2k
3. To use a reasonable amount on buying essential items such as a fridge freezer, a bed, a lawnmower and possibly a cheap tv, as we will not be able to take everything from our current home as it has to be divided with my ex husband.
4. Bankruptcy fees
5. Possibly ( and least essentially) a modest holiday( or weekend away) in this country for my little girl, as I know she won't be able to have one in the next 3 years and she's been really missing out whilst I'm on a DMP.

I would account for my purchases and keep receipts etc.

Any guidance would be great.
Thankyou.xx

It all depends on when you are going BR, if you sell the car before BR you can get away with using some of the funds to pay your BR fees and any other urgent expenses you must keep receipts and you must sell the car at market value. I would not use any of the money to fund a break however your OR should allow you maybe £50 a month on your SOA towards holidays for yourself and daughter. BR's are allowed holidays. Check out freecycle to see if you can get any of the items you need.

mollyp

I'm thinking of going BR in a couple of months when divorce has gone through and have found a place to rent, as I will need to sell car in order to raise deposit for rent. If I can't use it for that I don't know what to do as I don't have a deposit and won't have anywhere to live!! I thought the break would be a no no.

nervousmother

If you sell the car and have to use some of it for a months rent and deposit (prooven with receipts) the OR may raise a eyebrow but will understand.

emmastevens

Hi. went br in may 2008 after talking over debt finance with debt counselors. Decided BR was way to go as debt was over 40k. Anyway amongst prize possession was my £5000 car. It became exempt after I got letter from my employer explaining that I need my car for work. i.e traveling to and fro, dropping kids of at school and picking them up, all within specific times to get to work. And finally gave receipts of purchase of car, which was divided by 3 people, as my father and sister helped me pay for it.

tigerfeet2006

As NM has said you can use the funds from the sale of your car for everything on your list except the holiday. Though with the household goods I would try to get as much from places like https://www.freecycle.org and ebay and the ads in your local paper.