Totally new and should have seen this long ago!

Steiner

I am in the following sit, I have been in a "commission only job" since 2004 which did GREAT until mid 08 then things got worse and I am now in a position where I owe about £70K plus my business ( a Ltd company) has debt of about £16K (which I am a guarantor for). The Ltd. will be liquidated and I am declaring myself BR shortly, my date court date is on the 10th (next week).

Almost all of my debt is in my sole name except a joint account (600 overdrawn) and a credit card which my wife is an additional card holder on (3K limit, maxed out and in arrears).

others are a 2 loans (30K) and 3 credit cards 3K + 5.5K + 3.7K, 17K to my Ltd as directors loan plus bits and bobs on a few arrear bills etc. My only asset is our family car (about 10K in the current market) which we need
for business and to ferry our 3 kids around. We also rent our home at the moment.

I have hung on for the last 18 months trying to get things turned around but it is now clear I can not continue it any longer. My income is so variable that I make just enough to cover basic bills but this also comes in very irregular intervals. My accountants recommend that I declare BR and the CAB agrees with this.

S above most of it is in my name and my wife is not involved which we would like to use to our advantage. I have done some research and I would like to see if there is some things we have not taken into account. Any tips based on this would be advantageous.

debtinfo

is there any particular question you want answered, is there any finance on the car

Steiner

I bought the car outright. I owe it, I took one of the loans to do so. was a better rate then the financing.

I do have a question with regards to joint accounts. please see here: http://forums.moneysavingexpert.com/showthread.html?t=2317517

additionally, How do I work out what I declare as income, some months I make double what I make others and I could not make any agreements to repay which I could confidently keep. Also I need a few pointers. I just have the feeling that there is something that I am forgetting. I have 3 kids to think about and my wife, who is paranoid that we will not be able to move house once our youngest needs a larger space and that her credit will be badly affected.

debtinfo

The OR is unlikely to allow a car of £10k to be exempt in the bankruptcy, they would most probably sell it and give you £2k to buy a cheaper one.

As for the income average it over 3, 6 or 12 months whichever is appropriate.

Her credit rating should not be affected althouh you will find it more difficult (but not impossible) to rent in the future.

Steiner

I thought that they may not allow a 10K car. Are there any options to be able to sort something out on this? I really am not sure... It has all happened so fast recently.
I also use it for work, would this count? As my wife is French we need a reliable car for trips to visit hre family will they make exceptions in such circumstances?
Edit:
One person I asked about this suggested that I should get the car registered in her name, but as this is generally frowned upon I decided not to pursue this option. Or could this have been a way to keep it?

dojoman

Steiner wrote: »

I thought that they may not allow a 10K car. Are there any options to be able to sort something out on this? I really am not sure... It has all happened so fast recently.
I also use it for work, would this count? As my wife is French we need a reliable car for trips to visit hre family will they make exceptions in such circumstances?
Edit:
One person I asked about this suggested that I should get the car registered in her name, but as this is generally frowned upon I decided not to pursue this option. Or could this have been a way to keep it?

The OR would still have come after the car even if you transferred it in to her name, there is now way your car will be exempt, ours was valued at £4000 and we were told to either buy the BI, or the OR would sell it and give us £2000 towards another car.

Steiner

Thanks, could you clarify what you mean by buying the BI.

dojoman

The BI is the amount over and above the £2000 allowance, even though our car was valued at just over £4000 the OR let us pay £1800 to buy back the beneficial interest. The value of the car is taken from Parkers website and is usually the "poor" condition price.

Steiner

How about this scenario. Although the car documents have my name on it my wife and I own it together(she is named on the insurance as the main driver) Would the OR accept that she would receive half(5k)of the sale price and I receive 2k for another car and 3k go to OR?

ashellis

Steiner, just a quick thought that someone else might be able to clarify on..

You said you brought the car outright, by taking a loan out, that you still owe. Then the car is not in theory yours yet is it and so I think the OR will definately want it back.

I lost my company last week, also limited, for what started out as a smallish amount, by the time creditors put their escalated claims in it went for the tune of £246,000 in debt.

My bankruptcy yesterday is similar to yours, funding for the business etc, and my final amount was £38,000.

You need to be realistic that you do not own the car yet, and that you will be able to have a smaller car that will do the job, it will also help reduce costs for your insurance etc. I think that the OR will def not like you to keep this car as it is an asset that has not been paid for yet, so they cannot just write it off and hand you the keys.

I am sure others will be along with more advice, as I do not have a car etc, but hope that you will be able to work through all this, and believe me you can come out the otherside feeling a little better for it all.

Steiner

That's true. And your perspective is true, the car is not paid off as such although the Loan was not meant to be for the car when we got it... does the OR care what was stated as the purpose for the loan?

It is a messy situation, what I am trying to avoid with this car issue is to cause any more grief on the family. It is pretty much the only thing left that my wife can hang onto. Also for the 3 kids all of which are young and we still need to cart a buggy around. I had a look what I can get for 2000, that will allow for the family vists ie. 600 miles one way. And it seems like there is not a lot out there.