How far back does the OR go?

cuemix · 3 April 2011 at 5:43PM

Hi

I'm looking into bankruptcy and wondered how far back the OR goes into your past finances. I've read they can go back as far as they see fit but I was interested in other peoples experiences provided there was no reason for the OR to suspect criminal activity or fraud.

Would they "normally" ask for the past year or 2 years statements for example?

I'm interested because about a year and a half ago I was awarded some compensation for a motor accident and I used the money to move out of my partners house (for a deposit, rent and furniture) plus I bought a car (£4500) because my old one was about to give up the ghost. Officially, I should have declared it to the company managing my DMP but I didn't because I assumed they would want all the money and I'd have no way of getting my rent and deposit together or buying a more reliable car needed for work.

Thanks

debtinfo · 3 April 2011 at 5:59PM

well the OR will probably ask how much you paid for your car, when you boght it and how you paid for it, which will probably bring up the subject of the compo money anyway

cuemix · 3 April 2011 at 6:03PM

Do you think it might be frowned upon that I didn't tell the DMP company? Will it be regarded as serious? I can account for how I spent the money

debtinfo · 3 April 2011 at 6:06PM

depends on how much compared to your debts and whether what you did with the money was considered essential. A DMP is not a forml regulated type of insolvency and so there was no legal obligation to tell them although the OR may still have thought it unwise if you spent the money recklesly

cuemix · 3 April 2011 at 6:13PM

ok thanks for the info

HOLIDAYMAD_2 · 3 April 2011 at 8:25PM

I found they are looking for you to tell them events with dates that made you unable to service your debts, ie the point you decided you were no longer solvent they are then looking to see at that point did you still continue to use credit and if so when you couldnt service exisitng debts.

The Car i see you have mentioned this on another post and your employer wants to buy it for 1k, id be very wary of doing this esp when you paid in your words 4500 `18 months ago. If the car has devalued to 1000k since and it is needed for a reason ie work journeys then the OR would prob not have a problem with that, but selling a car at a massive marked down price is sadly one many do and get stung by the OR for it and does have the powers to get that car/funds back off your employer.

I think they have the data bases to do all sort of checks with cars etc.

It could be considered that spending 4.5k for a car was to high when some of that money could have gone to servicing debts on the DMP.
esp if you deliberately chose not to disclose that level of compo.

You need to get some good advise if this is the route you choose.

Good Luck

debtinfo · 3 April 2011 at 8:28PM

i think the OP means that the employer was going to buy out the extar amount between the exemptable amount and the price of the car for £1,000 rather than the whole car for £1,000

cuemix · 3 April 2011 at 8:40PM

HOLIDAYMAD wrote: »

The Car i see you have mentioned this on another post and your employer wants to buy it for 1k, id be very wary of doing this esp when you paid in your words 4500 `18 months ago. If the car has devalued to 1000k since and it is needed for a reason ie work journeys then the OR would prob not have a problem with that, but selling a car at a massive marked down price is sadly one many do and get stung by the OR for it and does have the powers to get that car/funds back off your employer.

I think they have the data bases to do all sort of checks with cars etc.

It could be considered that spending 4.5k for a car was to high when some of that money could have gone to servicing debts on the DMP.
esp if you deliberately chose not to disclose that level of compo.

You need to get some good advise if this is the route you choose.

Good Luck

I think I have a good case to convince the OR that I need a car and I've read that they allow £2000 for a car so the £1000 would be the approx difference in the value of my car that the OR would want from me so I could keep it. Total current valuation is somewhere between £2455 and £3115. So there's no funny business going on. The £1000 would be just a loan from my employer, they wouldn't be purchasing the car. Hopefully it would be valued at the lower value so I would only need £455 and not £1000. The OR might even let me off:eek:

With regards to the £4.5k spent, I needed a reliable car for my 110 mile round trip to work and back plus I worked irregular shifts at the time so I would have thought £4.5 would have been reasonable.

I will get proper advice very soon

cuemix · 3 April 2011 at 8:41PM

debtinfo wrote: »

i think the OP means that the employer was going to buy out the extar amount between the exemptable amount and the price of the car for £1,000 rather than the whole car for £1,000

Yes that's right

Ineedaname · 3 April 2011 at 8:42PM

Would your employer consider the additional £455 for the car to help you out? I'm just thinking if both your employer and the OR agreed for your employer to buy the BI in the car then that might be the way forward. If you left it to sort out until after BR then the loan wouldn't go into your BR and you would be able to pay it off after discharge, again your employer would have to be happy to wait until then for any repayments.

debtinfo · 3 April 2011 at 8:49PM

one thing i would add cue mix is try not to stress too much, it rarely all goes exactly to plan anyway, the OR might be a bit more generous with the allowance or they might for instance let you start the IPA a bit later instead to allow you to buy the extra bit of the car back. not guaranteed but im sure that when the time comes you will be able to work something out with the OR that benefits both sides. Its no good to the OR if you dont have a car to get to work, then they wouldnt get an IPA, so make a few just in case plans but try not to worry too much