Taking the Car

ThePoshCat_2

Hi,

I'm posting on behalf of my Mum, 61, who went bankrupt a few weeks ago.

The short story is that she decided to take on the pub that she and my step dad had run when they divorced and it all went horribly wrong.

She is now out of the pub, in rented accomodation and has an old car worth £750 according to the OR.

He called yesterday and said that as she is retired she must give them the car or pay £600 to buy it back.

She has looked for a job but has not been successful. She doesn't consider herself retired and probably won't for years to come.

Is there a route she can go down to ensure the car is seen as necessary rather than a luxury?

Thanks

Darren

tight_jock

ThePoshCat wrote: »

Hi,

I'm posting on behalf of my Mum, 61, who went bankrupt a few weeks ago.

The short story is that she decided to take on the pub that she and my step dad had run when they divorced and it all went horribly wrong.

She is now out of the pub, in rented accomodation and has an old car worth £750 according to the OR.

He called yesterday and said that as she is retired she must give them the car or pay £600 to buy it back.

She has looked for a job but has not been successful. She doesn't consider herself retired and probably won't for years to come.

Is there a route she can go down to ensure the car is seen as necessary rather than a luxury?

Thanks

Darren

Hi, TPC

If she is looking for work and can convince the OR that the lack of a car will hinder this process, she may get some joy. This depends on whether she can survive on whatever income she has. If she can show she is struggling without an income and the lack of a car is stopping her from getting a job then she may have a case to appeal the decision.

:beer:

gettingitsorted

Hi posh ,

unfortunatly there are no set rules as far as cars And OR'S go everyone on here has different experiances over cars ,the only thing i can suggest is that your mum writes down the reasons she needs to keep the car ,also have you had it valued at all either via a local garage or one of the on-line price guides ?

fermi

From: http://www.insolvency.gov.uk/freedomofinformation/technical/techmanvol1/Ch25-36/Chapter31/part2/part3/part_3.htm

31.2.21 Bankrupt claiming vehicle as exempt property

It the bankrupt's responsibility to satisfy the official receiver that a vehicle is exempt property, i.e. that it is necessary for his/her use personally in his/her employment, business or vocation, or is necessary to meet the basic domestic needs of the bankrupt and his/her family. In the case of a claim for exemption to meet domestic needs the official receiver must be satisfied that the motor vehicle is necessary to the extent that no practical alternative exists, to meet a genuine need and not merely a matter of convenience. If the use of a vehicle does not meet the test for necessity the vehicle is vested in the bankruptcy estate and the official receiver as trustee should instead pursue with the bankrupt the option to make a reasonable offer for the purchase of the vehicle (see paragraph 31.2.34).

The bankrupt's claim should be dealt with at the initial interview in either the narrative statement or in supplementary questions to the PIQ.

The bankrupt needs to be able to satisfy the official receiver that the vehicle is both necessary for his/her employment, business or vocation and is necessary personally to the bankrupt. This does not mean that the vehicle must be used exclusively by the bankrupt but it must be necessary to him/her not just to the other users.

Whether or not a vehicle is exempt property is in some cases a difficult question. In such circumstances, official receivers will need to use their discretion and consider each case according to its merits within the guidelines issued to official receivers. In all cases official receivers should apply the guidance strictly and rigorously. It is for the bankrupt to convince the official receiver that any motor vehicle is necessary within the exemptions. The value of the vehicle is not a determining factor.

31.2.22(a) Bankrupt claims he/she needs vehicle for work

When considering whether to exempt a motor vehicle under section 283(2)(a) the principal points to be considered are;

* whether the vehicle is used by the bankrupt in his/her employment, business or vocation,
* that the bankrupt could not reasonably travel to and from his/her place of employment without a vehicle, due to lack of alternative transport,
* that the bankrupt’s prospects of obtaining employment would diminish without use of the vehicle, even though the bankrupt may not be in employment at the date of the bankruptcy order. In such cases, the official receiver will need to decide whether there is a reasonable prospect of the bankrupt obtaining work,
* that a self employed bankrupt who does not have work at the date of the bankruptcy order may be able to retain a vehicle as an exempt asset if he/she can satisfy the official receiver that there is a reasonable prospect of him/her obtaining work, and
* that the bankrupt’s prospect of obtaining work would diminish even if a vehicle requires repair but will then be used to travel to work or to seek employment.

The bankrupt must satisfy the official receiver that a vehicle is necessary. If the bankrupt cannot do so, and the official receiver has reasonable grounds for believing that the vehicle is not exempt, he/she is entitled to treat the property as part of the estate and deal with it accordingly.

These are guidelines only, and each OR interprets a little differently.

Hope this helps...

ThePoshCat_2

gettingitsorted wrote: »

,also have you had it valued at all either via a local garage or one of the on-line price guides ?

Yes, its actually worth slightly more than OR says according to Parkers.

Thanks for everyone's comments.

AlanD_3

Shhhh... keep quiet about that then!

It will be worth mentioning (I guess) that under anti-discrimination law she is entitled to retire at 65 if she desires.

tight_jock

ThePoshCat wrote: »

Yes, its actually worth slightly more than OR says according to Parkers.

Thanks for everyone's comments.

You must take several things into account when valuing a vehicle for this purpose.

The value is an AUCTION value not a trade price. This tends to be around 50% of the top valuation in any of the guides.
The price must have agents fees and commissions deducted to come to a realistic figure for buyback. This is the first time I have heard of an OR giving a figure. Normally you would be asked to make an offer.

:beer:

ThePoshCat_2

Thanks all, she's written to them and they're considering thiungs at present.

However, she's been told by Halifax that they don't want her as a customer, not even with a cash card only. She opened the account after losing her business and can't go overdrawn.

Are there any banks that will accept bankrupts for a simple account?

gettingitsorted

Hi posh ,

Most of us have an account with the co-op its called a cashminder account it sems they have no problems with giving accounts to bankrupts

allofadither

Posh,

I'm with Barclays, basic account, no problem.