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Replacing car during bankruptcy

glamb
glamb Posts: 129 Forumite
edited 1 May 2010 pm31 9:09PM in Bankruptcy & living with it
Hi, my wife and I plan to go bankruptcy in May / June.

We have just found out that my wife is pregnant so we will need to change our little car with something bigger - we already have a 6month old - there is no way we can fot a double buggy / pram in the boot once the 2nd baby arrives.

Should I sell our car now and replace with something bigger before we go bankrupt, or will I be OK to sell the car and replace whilst we are bankrupt?

The car is worth approx 2k and I won't be spending any more than that on a replacement vehicle. I need the car for commuting to work

Thanks for your thoughts / recommendations.

Comments

  • sizzler
    sizzler Posts: 5,094 Forumite
    Part of the Furniture 1,000 Posts Combo Breaker
    If you replacing car like for like but bigger i would say OR would be ok about this as long you explain and keep proof ie peperwork.

    Some ORs allow car up to 2k so stay within or less.

    good luck sizzler:)
  • sizzler
    sizzler Posts: 5,094 Forumite
    Part of the Furniture 1,000 Posts Combo Breaker
    Sorry forgot to add if you sell your car make sure it is sold for book value, as you are disposing of an assett. If you are using some money to put towards it show where money came from to OR.

    sizzler:)
  • glamb
    glamb Posts: 129 Forumite
    edited 1 May 2010 pm31 9:10PM
    Thanks for the reply.

    I think I'll just wait then and only replace once I really need to - Nov / Dec.

    The only slight problem I've got is finding the 'book' value of our car - it books at approx £2,800(Private Sale) however the car is on the insurance register as a previous cat D write-off - It's difficult to say how this effects the value - I've estimated that it will be worth around 25% less.
  • sizzler
    sizzler Posts: 5,094 Forumite
    Part of the Furniture 1,000 Posts Combo Breaker
    Some ORs use glasses guide usually and middle value :)
  • dojoman
    dojoman Posts: 12,027 Forumite
    If you go on to the parkers website and use the poor condition price, that is the one a lot of the examiners use.
    :pB&SC No. 298
    Life`s Tragedy is that we get OLD too soon
    and WISE too late!
  • question on cars if/when I go br can my gf buy my car off me (for book price) as long as I make the money available that way I can continue to drive it
  • sizzler
    sizzler Posts: 5,094 Forumite
    Part of the Furniture 1,000 Posts Combo Breaker
    thanks dojo thats the one I was trying to remember.

    sizz:)
  • dojoman
    dojoman Posts: 12,027 Forumite
    question on cars if/when I go br can my gf buy my car off me (for book price) as long as I make the money available that way I can continue to drive it

    As long as you make the money available to the OR, if it is essential for work there is a good chance that she would only have to buy the BI from the OR as most OR`s allow up to £2000 for a car if needed for work.
    :pB&SC No. 298
    Life`s Tragedy is that we get OLD too soon
    and WISE too late!
  • dojoman wrote: »
    As long as you make the money available to the OR, if it is essential for work there is a good chance that she would only have to buy the BI from the OR as most OR`s allow up to £2000 for a car if needed for work.

    So if the car is worth 3500-4k sh would maybe only have to pay say 2k ? assume its best to wait until after BR and discuss this with the OR when it comes up
  • dojoman
    dojoman Posts: 12,027 Forumite
    So if the car is worth 3500-4k sh would maybe only have to pay say 2k ? assume its best to wait until after BR and discuss this with the OR when it comes up

    Our car was valued at just over £4000 but my daughter bought the BI back for £1600 but all cases are different, hope this helps?
    :pB&SC No. 298
    Life`s Tragedy is that we get OLD too soon
    and WISE too late!
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