Bankruptcy leading to Separation

toto7895

Hi I am new to this but I have been reading it for the last six months - My husband and I went bankrupt in August 2009 and we have now just fallen out of love with one another and decided to split which is not easy as we have two young children which are staying with me. However, in our bankruptcy we were allowed to keep the car we owned which was a Nissan Micra with a value of about £2,500 but we did have Renault Megane on finance and the finance company made us return that which has taken its toll on us - we set off at the crack of dawn to drop everybody off-anyway when we split my husband wants the car as he will need it but the problem is so do I. My question being; I know I can't get finance or a loan whilst bankrupt but would I be allowed for my boss to buy me a car and I repay him through my wages as unless I have a car I will not be able to keep my job - My boss knows I am bankrupt and said he will help me to have a car if he can - Can anybody help? WILL THE OR allow me to do this?

tech2_2

Hi toto

What a shame!!! you go through all that and that happens.......

Who's name is the car in? will you not have to inform the OR as your SOA is going to change...

Tech2

toto7895

Yes I will but we are trying to plan it all before we inform the OR although we are splitting it is amicable and I am the main wage earner who can afford to pay some kind of loan - it looks like we are lucky enough to stay in the family home and that is going to be for me and the kids so the least i can do is let him take the car and organise how i can sort out a car for myself.

skylight

Thats a shame.

Whose name is the car in? Is that different to who originally purchased the car?? If its in your name then tell your oh-ex to be that its yours.

As to your boss buying you a car, then that would be fine - as long as its a "normal" car and not an expensive thing. If he is going to deduct the money directly from your wages then you need to let the OR know. You will need to tell him anyway as your SOA is going to change drastically; as you are now responsible for the household bills, children etc so you will get the child benefits, tax credits etc. Do you rent? Ensure you apply for LHA (housing benefits) and council tax benefits (tell them you are single for the 25% discount once your ex-OH has gone) - apply even you think you are not eligable; even a few pounds a week is helpful. Once he has left, ensure you inform tax credits as your claim will change now.

toto7895

Do you think that I would have to get the OR to agree the amount I would be allowed to pay a month for the car - I know my boss is into leasing cars rather that buying and I have had a look for the cheapest lease and that was for a renault clio at £155 per month inclusive of VAT - would the OR agree this?

confused76

i would give the or a call, or write to them to be on the safe side . you'll need to do a new SOA anyway eventually as circumstances have changed. sorry to hear of your breakup, i hope you're doing ok

tech2_2

I agree with confused its usch a shame this is happening to you.

Why dont you post ur old SOA up so we can have a look and make some suggestion befor you speak with you OR then at least you will be pre-armed and not winging it!

tech2

toto7895

tech2 wrote: »

I agree with confused its usch a shame this is happening to you.

Why dont you post ur old SOA up so we can have a look and make some suggestion befor you speak with you OR then at least you will be pre-armed and not winging it!

tech2

I will have about £300 in disposable income if I get the tax credits that the online calculator says I am entitled to and if my husband gives me the agreed maintenance he says he is giving me so I could well afford the £155 per month.

Sunnylooloo

Hi Toto

sorry I haven't got any real advice to give you, but just want to say good luck, such pressure is put upon people at this time. Good luck I hope it all works out for you. sounds like me you got a good boss!

LL

Cash_Waster

toto7895 wrote: »

I will have about £300 in disposable income if I get the tax credits that the online calculator says I am entitled to and if my husband gives me the agreed maintenance he says he is giving me so I could well afford the £155 per month.

You wont have £300 disposable income though because the OR will take minimum 50% of any surplus

But being BR you are not usually allowed to continue paying for a car, usually it gets sent back and the person usually has to buy a cheap car that will do a job for a year whilst BR. Somebody tell me if I'm wrong.

Then you can look at other options after the year. At the end of the day the reciever would be giving you £1860 to lease a car for the year, whilst most BR's cars dont even cost that. Thats why they are taken as assets.

On your SOA your transport costs would be huge, ie,

£155 car
£120 petrol?
£50 repairs
£10 tax
£40 insurance?

So £375 a month to run a car? Public transport would have to be cheaper than that.

If you have a company car from work for necessity then that's a different matter.

Just my opinion but if somebody was allowed to spend roughly £400 a month on a car, as a BR on their SOA I will be well miffed and going to court to fight my SOA. £400 a month I could have a decent BMW or imprezza

dottydora

Cash_Waster wrote: »

You wont have £300 disposable income though because the OR will take minimum 50% of any surplus

But being BR you are not usually allowed to continue paying for a car, usually it gets sent back and the person usually has to buy a cheap car that will do a job for a year whilst BR. Somebody tell me if I'm wrong.

Then you can look at other options after the year. At the end of the day the reciever would be giving you £1860 to lease a car for the year, whilst most BR's cars dont even cost that. Thats why they are taken as assets.

On your SOA your transport costs would be huge, ie,

£155 car
£120 petrol?
£50 repairs
£10 tax
£40 insurance?

So £375 a month to run a car? Public transport would have to be cheaper than that.

If you have a company car from work for necessity then that's a different matter.

Just my opinion but if somebody was allowed to spend roughly £400 a month on a car, as a BR on their SOA I will be well miffed and going to court to fight my SOA. £400 a month I could have a decent BMW or imprezza

Forgive me if I am wrong but....

The OP was already allowed expenses for insurance, petrol etc. but just doesn't have access to the vehicle anymore. Therefore if the surplus is £300 the IPA will take £150 (I think) leaving the OP a surplus of £150. Surely she can spend this on whatever she likes? The OR hasn't previously disputed the motoring costs so I can't see why they would now.
Happy to stand corrected.