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Car

I have a car on HP that will obviously be taken back when I go BR, I have £2000 in a savings account that I want to use part of this to buy a run around. How should I go about this so as not to get myself in trouble with OR. Should I wait till BR declaire the savings and ask to use some for a car or will he just take the lot? or should I draw 1000 for a car before BR and declare the other 1000 to the OR?

Thanks
«13456

Comments

  • debt_doctor
    debt_doctor Posts: 4,595 Forumite
    Part of the Furniture 1,000 Posts Combo Breaker
    Hi,

    Can you prove a NEED for a car ie essential for work etc?

    DD
    Debt Doctor, Debt caseworker, Citizens' Advice Bureau .
    Impartial debt advice services: Citizens Advice Bureau Find your local CAB *** National Debtline - Tel: 0808 808 4000*** BSC No. 100 ***
  • freddy911
    freddy911 Posts: 555 Forumite
    Hi,

    Can you prove a NEED for a car ie essential for work etc?

    DD

    I dont need it for work, but I need it for child care reasons my children live with there mum 40 miles away, and I need to have them overnight when there mum is on nights and take them to school the next day. Also my ex works alot of weekends and I generally have them over the weekend collecting them after work on friday and dropping them back to school on a monday morning then returning to work myself. This would be impossible without a car.

    Thanks
  • debt_doctor
    debt_doctor Posts: 4,595 Forumite
    Part of the Furniture 1,000 Posts Combo Breaker
    Hi again,

    Vehicles cause more controversy then probably any other asset in bankruptcy. The onus is on YOU to PROVE that the vehicle is an exempt asset in line with the technical manual below;

    31.2.23 Bankrupt claims he/she needs vehicle due to disability or for domestic use
    A bankrupt may inform the official receiver that he/she suffers from a disability and that his/her motor vehicle is necessary for mobility or inform the official receiver that the vehicle is necessary for domestic use (e.g. to take children to school). The official receiver should treat such cases sympathetically but where the exemption provisions as laid down in the legislation do not apply the motor vehicle cannot be treated as exempt property by the official receiver (see paragraph 31.2.16.)
    It is for the bankrupt to convince the official receiver that the motor vehicle is necessary, to the extent that no practical alternative exists, to meet a genuine need and not simply as a matter of convenience. If the use of vehicle does not meet the test of necessity the vehicle is vested in the bankruptcy estate and the official receiver should instead pursue with the bankrupt the option to make a reasonable offer for the purchase of the vehicle (see paragraph 31.2.34.)
    For the purpose of determining necessity, a reasonably practical alternative does not mean no alternative. In most cases, a taxi service would offer an alternative to a private vehicle, but it should be borne in mind that the costs of regularly using such a service might well exceed the costs of maintaining a modest vehicle and thus compromise the debtor's ability to contribute to an income payments order/agreement. For example, a task that needs to be undertaken daily might be prohibitively expensive by taxi, but undertaking a weekly shop at the supermarket may well reasonably be achieved by using a taxi service rather than retaining the use of a vehicle.
    Where a bankrupt claims to require a vehicle to transport children to and from school, he/she will need to demonstrate that there is no public transport alternative or that the distance to travel would make walking (or cycling) an impractical alternative. It is not sufficient for a bankrupt who lives in a rural area to claim a motor vehicle simply by virtue of distance from the school. The bankrupt must provide a statement that there is no transport alternative (e.g. a local authority school bus service) or, if there is more than one child, show that diverse locations makes it impossible to transport all the children to school by public transport. The practical problems such as organising children to walk to school, to travel with more than one child on public transport, or any general concerns expressed about safety are simply a matter of convenience and in such cases the vehicle is not necessary to meet a basic domestic need. However, if the children attend school in opposite directions and could not physically be delivered at school on time without the aid of a motor vehicle, it might be considered necessary to the household.
    It is anticipated that the bankrupts most likely to benefit from the wider interpretation of exempt property, and the claims most likely to succeed, will be from bankrupts who suffer from a disability and state that the motor vehicle in question is necessary for mobility. In such cases, the bankrupt's disability would prevent them from seeking employment. Where this is the case, the official receiver must be satisfied that the vehicle allows the bankrupt a degree of independent living which would be impossible without the retention of a vehicle, and/or that there is no practical alternative to allow the bankrupt to undertake routine medical appointments or care associated with their disability.
    In such cases, the vehicle should be used personally by the bankrupt and must not be a vehicle maintained for another's exclusive use with occasional assistance and transportation given to the bankrupt. If the bankrupt requires the assistance of another to travel, even in a motor vehicle, then the vehicle does not come within the exemption. Should this be the case, the main user of the vehicle should be invited to make an offer to purchase the vehicle (see paragraph 31.2.34.)
    Bankrupts who live in an urban area with reasonable transport links are unlikely (other than as a result of disability) to be in a position to claim that a motor vehicle is necessary to meet a domestic need. For this reason, a decision that a motor vehicle is exempt property, unless the vehicle is required for employment (see paragraph 31.2.22) or is by reason of the bankrupt's disability, must be confirmed by an assistant official receiver.

    31.2.24 Use of discretion
    The Official Receiver should use his/her discretion to take action which is practical and expedient but which is also in the interest of the estate and of The Service in keeping administration costs down. The facts should be considered on a case by case basis.

    DD
    Debt Doctor, Debt caseworker, Citizens' Advice Bureau .
    Impartial debt advice services: Citizens Advice Bureau Find your local CAB *** National Debtline - Tel: 0808 808 4000*** BSC No. 100 ***
  • freddy911
    freddy911 Posts: 555 Forumite
    So assuming I can convince the OR that a car is needed what would be the best way to proceed with purchasing one from my savings? before or after my BR?

    Thanks
  • dojoman
    dojoman Posts: 12,027 Forumite
    If it is not essential for work or on medical grounds, you could have a problem convincing them that you need one, unfortunately.
    :pB&SC No. 298
    Life`s Tragedy is that we get OLD too soon
    and WISE too late!
  • freddy911
    freddy911 Posts: 555 Forumite
    Well if he didnt then I would have no option but to move closer to my kids, and that would double my fuel costs driving in the oppasite direction to work every day.

    So back tomy question, whats the best way to go about it?
  • dojoman
    dojoman Posts: 12,027 Forumite
    It is very hard to give a definitive answer as I don`t think there is one, sorry:( It is something you will have to decide for yourself and just hope that the OR goes along with it. Whatever you decide, hope it turns out well for you:)
    :pB&SC No. 298
    Life`s Tragedy is that we get OLD too soon
    and WISE too late!
  • freddy911
    freddy911 Posts: 555 Forumite
    So if I draw up some of my savings and buy a car, would I be breaking any laws? or if the OR says I dont need it will they just take it and sell it? I just dont want to land myself in trouble?

    Thanks
  • debt_doctor
    debt_doctor Posts: 4,595 Forumite
    Part of the Furniture 1,000 Posts Combo Breaker
    I don't think that the act of buying a car to replace the one you are about to lose in the genuine belief that a car is essential to you would cause a great issue. Its not like you are trying to put it in to someone elses name, it is your percieved legitimate expenditure.

    Your issue is proving that it will be an exempt asset.

    DD
    Debt Doctor, Debt caseworker, Citizens' Advice Bureau .
    Impartial debt advice services: Citizens Advice Bureau Find your local CAB *** National Debtline - Tel: 0808 808 4000*** BSC No. 100 ***
  • kepar
    kepar Posts: 1,297 Forumite
    If you bought a cheap car, £500 say the OR would probably not take it from you. But the OR may not allow any allowances against it, such as tax, insurance and fuel etc. It is always a difficult one, each OR will come back with their own answer.

    You haven't lost your car yet , so it may be worth waiting to explain your situation to the OR and taking it from there.
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