Are you allowed a car when bankrupt?

miserableindebt

hi, we are going through this, now hope to have court date by end of April, we were told to get rid of car because it would be taken from us as an asset, its only worth £250 according to the garage, and most of you on here have already said, they shouldnt take it for that price, especially if we need it for school runs etc.

We have someone who is happy to buy it from us for £500 so were debating on this, cos money would be really useful towards the BR fees.

If we do sell it, and go BR are we then able to buy a cheap run around for about £200 once its all done, or do we have to ask the OR??????????

Please help me with yet another decision!!!:rolleyes:

Bakeybadoo

Something that amount, I'm pretty sure the OR would not be interested in. It's not worth the amount it would cost them to take it and sell it.

As for selling it to someone else? So long as you declare it on the forms and use ALL the money towards getting something else AND/OR paying BR, it won't present a problem.

As for when to sell, well if it's going to help raise funds for BR, do it before. If you sell it after, the OR might very well want the cash as you don't need to get another car for your work/medical reasons etc.

I can't say what the OR will think if you buy a car after BR but for me, I wouldn't risk it. I'd do it before hand or even better, keep the car. The latter being my personal advice.

rog2

Hi - I would think VERY carefully before getting rid of the car. As already said, it is MOST unlikely that the OR is going to take it from you. On the other hand, buying a car during your BR period could be awkward as your income is going to be strictly controlled and even finding £200 could be difficult.

miserableindebt

rog2 wrote: »

On the other hand, buying a car during your BR period could be awkward as your income is going to be strictly controlled and even finding £200 could be difficult.

what does this mean that income is strictly controlled? they dont know what we spend money on do they? food, clothes etc?

Mike_St_Helens

YOu have to give a detailed report to your OR explaining what ypu spend your money on. So if you earn a lot, they take some from you... I wouldnt worry about this too much though. ALL expenses that normal people spend are allowed.. its onlyif you have an exessive amount, Im on aroud £20k a year and only have to pay £60 a month... (when they finally get round to asking for it !)

miserableindebt

so thats just like a debt management plan that we have now then?

so if we decide to save £200 towards something thats ok ??????????????

im worried again now lol!!

were thinking we may sell this one for £500 and just get a £200 one and use the rest towards the BR.

I really need to see these forms, so I know what your all talking about.

What else do you have to declare on the forms?

Ive recently sold loads on ebay to raise money to pay 6 months rent in advance will that be ok?

miserableindebt

.....and we have to pay another 6 months rent in advance in 5 months time.

Is it ok to let it build up?

Bakeybadoo

miserableindebt wrote: »

so thats just like a debt management plan that we have now then?

No, it's called an IPA. If you have a surplus income of £100, they take a %, based on a sliding scale but say £100, you'd get an IPA for £50 for 3 years.

This can vary if your income goes up or down.

so if we decide to save £200 towards something thats ok ??????????????

Can't answer categorically but since you are supposed to spend all available income on your monthly expenditure and that's why you only have x amount surplus, it wouldn't look too good to be hoarding money anywhere, especially not before you have been discharged.

were thinking we may sell this one for £500 and just get a £200 one and use the rest towards the BR.

That wouldn't be a problem, you could account for where that money went. If you left it sitting in a bank or couldn't account for it (say you stashed it away with a friend), it might not look too good.

I really need to see these forms, so I know what your all talking about.

The online forms can be found at: https://www.insolvency.gov.uk.

What else do you have to declare on the forms?

Uh everything really. Personal details, assets, savings, pensions, cars you own/have owned within the past 12 months, dependents, your income and outgoings in detail (which will be scrutinised by the OR after BR). Your debts, why you got into debt.

Ive recently sold loads on ebay to raise money to pay 6 months rent in advance will that be ok?

Yes, that's fine. They'd only know that if they looked in your bank statements and saw £600 from Paypal for instance but they accept that people do that. Heck, I've earnt more than a few thousand from eBay before now....

They won't be looking at your eBay account/Paypal account or anything though.

Bakeybadoo

miserableindebt wrote: »

.....and we have to pay another 6 months rent in advance in 5 months time.

Is it ok to let it build up?

The OR will understand that. As long as you have proof that's how rent is paid.

Where do you mean let it build up?

Mike_St_Helens

Bakeybadoo wrote: »

No, it's called an IPA. If you have a surplus income of £100, they take a %, based on a sliding scale but say £100, you'd get an IPA for £50 for 3 years.

This can vary if your income goes up or down.



Can't answer categorically but since you are supposed to spend all available income on your monthly expenditure and that's why you only have x amount surplus, it wouldn't look too good to be hoarding money anywhere, especially not before you have been discharged.



That wouldn't be a problem, you could account for where that money went. If you left it sitting in a bank or couldn't account for it (say you stashed it away with a friend), it might not look too good.



The online forms can be found at: https://www.insolvency.gov.uk.



Uh everything really. Personal details, assets, savings, pensions, cars you own/have owned within the past 12 months, dependents, your income and outgoings in detail (which will be scrutinised by the OR after BR). Your debts, why you got into debt.



Yes, that's fine. They'd only know that if they looked in your bank statements and saw £600 from Paypal for instance but they accept that people do that. Heck, I've earnt more than a few thousand from eBay before now....

They won't be looking at your eBay account/Paypal account or anything though.

You explain well.. Thanks!

If there is a paypal account thats linked to some form of 'product' selling, and admitted that its some form of a business though, The OR will want to see the details...

Bakeybadoo

Oh yeah, if it's more than a personal account sort of thing.

People have to live and thank god eBay provides a way for us to do it.