Bankruptcy/IVA - are horses classed as assets?

kimberley4547

Can anyone help? You have been really helpful to other people so hope you can help me. If I have some horses that are quite old now but are ones that I have had for most of their lives and I can't bear to part with, can the courts make you sell them to recover debts? They wouldn't be worth more than a few hundred pounds each as they are older brood mares.
Also, we are currently in an IVA arrangement, but they don't allow any expenditure to cover the cost of looking after them. I can understand their way of thinking, namely if you are in that much debt, why would you still have horses and dogs, but they are my family and I can't bear the thought of losing them. I've already had one breakdown over a year ago and I don't want to end up down that road again.:(
Can someone please help me understand the law with regard to animals?
Thank you very much

IF

Hi kimberley4547 and Welcome to the BR board.

It's a hard one tbh as OR's differ so much, please do contact CAB, you can discuss with them face to face and they will advise you further.

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Best wishes
IF...x

PippaGirl_2

Kimberley, that's a hard one. I know someone who had her horses claimed as assets during BR despite not being worth much (if anything) and they definitely won't allow you the expenses of keeping them as part of your SOA if you are working or have independent income that might lead to an IPA. I also know of someone who kept her horse while BR, don't know her well enough to know how or why.

I think it will very much be down to your own individual OR, together with the value of the horses and the cost of their care. Is it possible to offer them on free loan so at least there is no cost of care?

tiggerbodhi

Hi, didnt want to read and run, there was another thread recently about old horses and BR, can't remember who posted it, but it did give some very good information, the "argument" is the difference between livestock (an assett in BR) and a Pet (which is not) you are allowed Pets in BR, not sure if there is a level to which you can, I have a number of Dogs and there was no argument from the OR reference their expenses, but was asked if they were used for financial gain (ie breeding).

On an Soa IF the horses were pets (how you get a definitive on this??) you can put some of the expenses, you would have to "rob peter to pay paul" for the rest of the expense of keeping them.

The issue with BR is often sadly you have to cut your cloth to fit your income and affordable lifestyle, in BR can you afford the horses once all you main living expenses are paid? BR does mean living well within your means.

Good luck

Mouse1812

31.10.25a Bankrupt’s own pet animal (inserted March 2012)
It is highly unlikely that the bankrupt’s own pet animal will have any realisable value, unless it has a good pedigree.
If so, the official receiver should, in the first instance, establish if the bankrupt wishes to introduce a third party to purchase the animal from the estate. The third party should arrange for the valuation, conducted by a registered breeder or other specialist, on which the sale price should be based.
Guidance on dealing with a stock of pet animals is given in paragraphs 31.6.58 to 31.6.63.

sarahlouise1979

I had a similar problem a few months back when I went bankrupt. Think I did a post on it asking for advice if I remember correctly.
Anyway, I have a 21 year old mare, part retired and I've had her since a 3 year old so definitely more of a pet than an asset. I did have trouble convincing the OR of this though!

I only put the bare minimum on my SOA for her upkeep (as it is very minimal- she lives out at my mum and dads so really doesn't cost me much). The OR was fine with the expenditure for her but insisted that she was an asset and that I needed to 'buy her' off them! They came up with a random figure of £300 for her 'value', and a series of emotional and angry phone calls and emails followed. I explained that she had no monetary value whatsoever, as she is old, arthritic, and has numerous other little problems. I told them that they'd have a job getting her in a box to take her away anyway seeing as she hasn't travelled since the day she came to us as a 3 year old.

I was then asked to make an offer for her, so called their bluff (knowing that there was no way that a) I'd let her go and b) that they'd actually follow through) and offered £20. Which they accepted!

So, my advice would be- call their bluff and tell them they're welcome to come and pick the horses up but that they'll never pass a vetting so will never be able to sell them. In my experience the OR didn't know anything about horses, and asked a series of stupid questions which would have made me laugh had I not been so angry.