Will bankruptcy affect my childrens savings accounts and car??

tezzab1978

Hi all,

I'm new to all this and after 12 months of struggling financially and carefully considering my options, I have decided to go bankrupt. I have just completed the debt remedy process on the cccs website and this also confirmed bankruptcy is the option. I have a few questions which I hope someone can help with.

I have 2 children who each have a savings account each and I was wondering when going bankrupt , would these be considered as an asset as I don't want these to be affected??

I also have a car, worth approximately £3000 which I need for work and to take my children to there Dad's on a weekend which is quite far away, will my car be taken off me?

Any advice will be appreciated.

Thanks in advance

tezzab

tezzab1978

Also will this affect my car insurance or any future policies I may take out?

JCS1

Which bank are the savings account with? And whose name is on the account? Halifax have a tendancy to close the account, but they normally send a cheque.

CanItGetWorse

What kind of savings accounts are they? My daughter has a child trust fund for which I am the trustee, and my OR was happy for me to continue to oversee it, seeing as though I can't access the money myself anyway and it's most definately her money ( little monkey isn't even two and she has far more money than me!)

As for you're car, I'm sure someone more knowledgable will come along soon, but it may be slightly over the threshold? Our car was only worth about £600 so we were allowed to keep it.

CanItGetWorse

You're? Your even!

tezzab1978

The accounts are with halifax but are in my childrens names but im named on them for signing purposes only as they were opened up when my children were babies
Thanks

kepar

tezzab1978 wrote: »

The accounts are with halifax but are in my childrens names but im named on them for signing purposes only as they were opened up when my children were babies
Thanks

The Halifax will close these accounts and give you cheques for these amounts. This is what happened in our case. If they are over 12, I believe they can open an account in her name with the Halifax.

There didn't seem to be any banks at the time (3 years ago) that would accept a child under 12 without an adult on the account.

MikeJO

kepar wrote: »

The Halifax will close these accounts and give you cheques for these amounts. This is what happened in our case.

Happened to me also....although it was a banker's draft rather than a cheque; don't suppose that makes a lot of difference.

Ineedaname

You say you've run the CCCS online debt remedy but it is only a guide, have you actually taken advice from one of the free debt advice charities in person? You really should contact one of them as they'll be able to go through your full finances and advise accordingly.

I think the car may be something you'll have to negotiate with the OR as it is above the value considered for reasonable needs. However, if you can demonstrate a need for a higher value (potentially more reliable as younger) car due to your work mileage then it may be exempted by the OR. The alternatives are that they will let you keep it but want you to buy back the beneficial interest in it, or that the OR believes you can live with a lower value vehicle, takes yours as an asset and gives you money to buy something 'reasonable' for your needs. Other members can advise more about how the latter two scenarios work.

dojoman

Unfortunately the chances of your car being exempted are very slim. If they do deem it necessary, they will either offer you the chance to buy back the BI in it, or take the car, sell it and give you money for a lower value one. I had to find nearly £2000 to keep mine, luckily my daughter purchased it back for me.