selling an exempt vehicle during bankruptcy

clivetash

my wife and i were declared bankrupt a month ago after our business collapsed. We have had the dreaded interview ( ok actually) have, with the OR'S help managed to keep a bank account open and they let us keep one van for a vehicle ( it was marked as exempt on the official forms)
my question is this: I have been offered a job where I need my own transport and the van is not suitable.
Can I legally sell this van and use the ££ to buy a more suitable vehicle for my new job or do I have to ask for permission from the OR ?

JCS1

If you have received a letter confirming that it is exempt, then it is yours to do with what you wish

sniggings

Yeah you can safely sell it.

caffsean

We had this with our bankruptcy. Our vehicle wasn't going to pass mot and needed too much work for us to afford, we were kindly given some money to put with whatever we could get for our old car (we had £1500 in total). I rang and checked it all out with our OR, he told me that so long as the new vehicle wasn't valued at more than £3000 he would continue to class it as exempt but if it was more he'd have to seize any new vehicle as really we should be able to get a good cheap runner.

This may have changed since then but I'd still recommend checking with your OR, the last thing you want is to buy a new car and find the OR seizes it (it's the actual car itself thats exempt - it would be a bit of a joke if you were bankrupt and went out to bought/was given a new Merc, if that makes sense! lol.

Edit - I suppose what I mean is whilst your van is exempt your new car might not be, the merc example probably wasn't the best! ;-)

sniggings

caffsean wrote: »

We had this with our bankruptcy. Our vehicle wasn't going to pass mot and needed too much work for us to afford, we were kindly given some money to put with whatever we could get for our old car (we had £1500 in total). I rang and checked it all out with our OR, he told me that so long as the new vehicle wasn't valued at more than £3000 he would continue to class it as exempt but if it was more he'd have to seize any new vehicle as really we should be able to get a good cheap runner.

This may have changed since then but I'd still recommend checking with your OR, the last thing you want is to buy a new car and find the OR seizes it (it's the actual car itself thats exempt - it would be a bit of a joke if you were bankrupt and went out to bought/was given a new Merc, if that makes sense! lol.

Edit - I suppose what I mean is whilst your van is exempt your new car might not be, the merc example probably wasn't the best! ;-)

depends when you went BR, the limit was £2000 2 or year years ago, so with the extra you were gifted, is probably why you were allowed to keep it, but the limit now is £1000, so unless gifted £2000 chances are a £3000 car would not be allowed under the new rules.

caffsean

Thank you Sniggings we went bankrupt nearly 4 years ago now but like I said we ended up with £1500 in total at the time for the new car anywayso there wasn't any problems with it at all

But as things have changed and the allowance only being £1000 it might be worth explaining the situation and checking it with your OR just to be safe.