Can I sell my car pre bankruptcy and use it for rental deposit?

mummybiz5

How would the OR look upon me selling my 10 year old citroen at full market value and using the money towards rental deposit - we are needing 6 months rent up front .. planning on stopping mortgage and dmp payment and saving hard - then moving into rented - then saving bankruptcy fees and going bankrupt - does this sound viable - can we stave off northern rock as we will have missed 4 mortgage payments by the time we can move out? - we have no mortgage arrears as yet?

tigerfeet2006

As long as you have a paper trail for the money and sale and where it has gone then you will have no problems. Try and save for rental deposit, rent, moving costs and BR costs before you move out if you can, it will be much easier. Obviously if you can't then fair enough.

NeverAgain_2

You can manage without a car, but not without a roof over your head, so it's a perfectly reasonable thing to do.

And you are reducing outgoings - petrol, tax, servicing, insurance - which is also a reasonable and responsible step for someone who is short of money.

Staving off Northern Rock for a few months will not be a problem.

Many people in your position stick in their house for months, or a year or more.

The more common question is: Will they ever get around to repossessing it?

mummybiz5

Thanks - we will definately need 4 months or so of not paying the mortgage plus selling the car to make up the 6 months rent - how will i stave off the unsecured creditors if nram are likely to be slow to repo - will they go for a ccj in 4 months - is there any way of keeping them happy and if they did go for a ccj and we are en route to bankruptcy what happens ?

NeverAgain_2

...is there any way of keeping them happy and if they did go for a ccj and we are en route to bankruptcy what happens ?...

They are not being paid, so there is no way of keeping them happy.

But that is a long way from you being evicted.

If they get a CCJ nothing much will happen within your timeframe.

There is a long gap between a CCJ and physical, nasty men with sticks eviction.

You will be long gone before that happens.

But you may well have to put up with pressing letters and phonecalls in the meantime.