We'd like to remind Forumites to please avoid political debate on the Forum. This is to keep it a safe and useful space for MoneySaving discussions. Threads that are - or become - political in nature may be removed in line with the Forum’s rules. Thank you for your understanding.
We're aware that dates on the Forum are not currently showing correctly. Please bear with us while we get this fixed, and see Site feedback for updates.
Bonus just prior to BR

wheredmymoneygo
Posts: 86 Forumite
I am going to be receiving a bonus from work just prior to going BR. In going BR, i am going to have to hand my current car back to the HP company.
If i use some of my bonus to buy a car worth around £2000 and then are declared BR, will i be able to keep the car? will it be frowned upon by the OR? I need the car to get to work.
If i use some of my bonus to buy a car worth around £2000 and then are declared BR, will i be able to keep the car? will it be frowned upon by the OR? I need the car to get to work.
0
Comments
-
Hello, not sure on this one......just bumping x"If wishes were horses, then beggars would ride"
0 -
It depends on the value of the car, what it is used for and whether they can get any value from it to repay creditors. What kind of car are you considering getting and what are your household circumstances like, any children, jobs reliant on transport, disabilities etc? Trouble is it's down to the OR you get on the day as they vary widely as to how lenient they are and how they would see it. If they felt that you bout the car as to prevent the OR having the full bonus to pay creditors then it might cause a problem but if you need a car for work etc then I'm *imagine* that that would be ok so long as it was a low value car, ie under 1k.Total 'Failed Business' Debt £29,043
Que sera, sera.0 -
Hi there,
It is the correct that the OR will allow you a car for work etc. the calue can vary upto £2K. I am not sure if you use money ie bonus which as an assett to your BR is apropriate. I would keeep money wait tilll BR and ask the OR if they can release some of the funds for a car
Good luck sizzler:)0 -
You should be able to have a car if you need it for work, but as mentioned it's not set in stone. Just be able to show a paper trail and your reasoning why you have done what you have and you should be alright.
Thought the allowed car value was £2000 not £1000, but see what the others thinkDMP Mutual Support Thread Member : 3180 -
You should be able to have a car if you need it for work, but as mentioned it's not set in stone. Just be able to show a paper trail and your reasoning why you have done what you have and you should be alright.
Thought the allowed car value was £2000 not £1000, but see what the others thinkTotal 'Failed Business' Debt £29,043
Que sera, sera.0 -
Basically, the bonus will be around 4000 and i am looking to use 2000 to buy something like a punto. i need the car to drop kids off with childcare provider, and for commuting as public transport is untenable. It's about a 42 mile round trip every day all over the county. This would leave about £2000 left over, which i have no problem with the OR taking when i then go BR.0
-
Although the Act does not stay what the figure should be, just that it should be suitable and not of excessve value as you can see the OR's state that it should not be more than £2,000
31.2.26 Provision of a suitable replacement Where a decision is made to replace an exempt vehicle with a cheaper alternative URL="http://www.insolvency.gov.uk/freedomofinformation/technical/TechnicalManual/Ch25-36/Chapter31/part2/part3/notes/notes.htm#7"]note 7[/URLthe official receiver should inform the bankrupt of the amount he/she is prepared to make available out of the sale proceeds. The official receiver has discretion as to the amount allowed for the replacement which should be sufficient for the bankrupt to buy a replacement vehicle which is suitable for his/her needs. For consistency between official receiver's offices a guideline maximum figure of £2,000 has been introduced. While official receivers may exceptionally exceed this figure depending on the purpose for which the vehicle is used, it should be adhered to as frequently as possible.Hi, im Debtinfo, i am an ex insolvency examiner and over the years have personally dealt with thousands of bankruptcy cases.
Please note that any views i put forth are not those of my former employer The Insolvency Service and do not constitute professional advice, you should always seek professional advice before entering insolvency proceedings.0
This discussion has been closed.
Confirm your email address to Create Threads and Reply

Categories
- All Categories
- 348.3K Banking & Borrowing
- 252.1K Reduce Debt & Boost Income
- 452.4K Spending & Discounts
- 240.9K Work, Benefits & Business
- 617.2K Mortgages, Homes & Bills
- 175.7K Life & Family
- 254.1K Travel & Transport
- 1.5M Hobbies & Leisure
- 16K Discuss & Feedback
- 15.1K Coronavirus Support Boards