The "what do you need to know before you go bankrupt?" thread!

ClaireLR

Hi everyone,

Ok I am starting a new thread now as I've finally made the decision, and my date for BR is 6 July 2007 at 915am!! EEK!

Now I dont know about anyone else still considering BR but there are still a few things I'd like to know before the day so I'm going to post my questions here and I'd like other people who are considering BR to do the same so that we can help each other (god knows I need the support at the moment!) and find out as much as possible before the day arrives.

So my first question goes something like this:-

I know about IPA (from this board), and after roughly working out my SOA (which I will post later) I know I have around £50-90 a month leftover and so I am assuming that going by that I won't have an IPA put in place (I've read you need more than £100 surplus per month for this to happen but please correct me if this is wrong). My outgoings include monthly running costs for a car which are £100 petrol, £18 road tax and MOT (which I put away every month), £40 car insurance, £30 maintenance for the car (again saved every month) and £22 breakdown cover which (if my maths is right!) adds up to £210.

I havent a clue what my car is worth, its a Y reg Citroen Saxo in fairly good (although not excellent) condition, and I would say worth about £1000 (although if anyone can advise me differently or let me know where I could find this out I'd be really grateful)

SO, what I'm wondering is, and I do realise no one can say for definite, what is the likelyhood of my car being taken and an IPA being put in place, as if I dont have a car I dont have running costs and therefore would have a much bigger surplus? Strictly speaking I don't NEED my car for work, there is a bus stop outside my home and work is 1 bus ride away and a 15 minute walk. However I live by myself and my family/friends all live quite a way away (I would estimate its about a good hour and half to walk there) and I dont want to feel like I'm cut off from them (the buses by me dont run regular at night and it would be 2 buses to family/friends) the other thing that bothers me is I dont live in the nicest of areas and wouldnt mind having to walk/catch a bus while the light nights are here, but come winter I wouldnt really feel safe hanging around waiting for a bus.

Sorry this has been such a long post, if anyone could offer any advice I'd be really grateful.

And I'll be back to ask more questions (I have loads, just need to have a good think!) later on!

fermi

As you've shown that you are aware, the issue of cars and bankruptcy is down to the individual OR.

A good sticky on what factors they consider, and when, can be found on another forum here:

http://www.debtquestions.co.uk/debt_forum/viewtopic.php?t=14954

In a similar way good advice on IPA's is here:

http://www.debtquestions.co.uk/debt_forum/viewtopic.php?t=9679

I can't offer any further advice, except to say that I hope things go well for you.

wherediditallgo

Claire, it would be useful to look at your SOA. The reason I say that is because when you have any surplus, it's wise to look at all your outgoings to see what might be disallowed & then see if the figures for that item could be included elsewhere. Otherwise, with your £50-90 surplus it's conceivable that the OR might disallow something else that might take you over the £100 barrier. If we can look at your SOA, we might be able to make suggestions that will make that less likely for you.

I worked out my own surplus as about £70 - the OR must have disallowed or reduced an amount for something (though they haven't told me what), because I got an IPA of £50pm. I'm not contesting it because (a) it's the lowest they could have set for me, & (b) I was struggling to pay hundreds more than that each month. Knowing my luck, contesting it would end up with a bigger IPA, so I've not opposed it.

Penelope_Penguin

ClaireLR wrote: »

I havent a clue what my car is worth, its a Y reg Citroen Saxo in fairly good (although not excellent) condition, and I would say worth about £1000 (although if anyone can advise me differently or let me know where I could find this out I'd be really grateful)

Hi, Claire! When I'm assisting someone with a BR form, we look up the value on Parker's Guide (you can do this on-line). The spec of your car will have a bearing on its worth, but I usually find that it's worth less than they originally thought. This isn't a bad thing as far as your situation goes. If it is worth less that £1000 it's unlikely that you'll lose it. If it is worth more, you might be given money to buy a cheaper car, with the proviso below.

One word of caution - strictly your car can only be exempted from your bankruptcy if you need it to get to work (or for your *vocation* ). The OR/trustees will have no interest in what else you use/need it for.


HTH, Penny. x

ClaireLR

Thanks Penelope

oh-oh, just looked on the Parkers and they re advising that my car is worth between £1275 and £1635, I honestly didnt think it would be worth that much. How do OR's value cars? If I said on my forms that I considered it to be worth 800-1000 (which I would have if I had not found out about that website) then how/where do they check?

OK SOA coming up next!

Thanks so far guys and gals.

Remmer

The vocation thing is the key Claire. Mine was caring for an eldely parent who would have become housebound without my car. The OR accepted this without question. Vocation has many meanings and in all truth the OR would rather let you keep the car if at all possible as it's a huge hassle for them to take it and sell it

fermi

ClaireLR,

The OR would be looking at the auction price, which people tell me is between 50-75 % of the 'private sale' / 'trade in' price. And they have to weigh up whether it is worth the bother of the cost of sending it to auction.

But anyway, with a car of such relatively low value the important question the OR will ask is: Is the car 'essential' for your day to day living, or merely convenient?

Again, sorry this is such a grey area, but even the 'Insolvency Service' would not be able to tell you whether you could keep the car/running costs until they have your full details.

EDIT: And as Remmer implies the OR's are generally sympathetic to needs such as the ones he stated.

ClaireLR

Remmer I didn't even think about that.

I do occasionally have to do things for my dad, he's 56 and suffers with Osteoarthritis. In all honesty 95% of the time he's fine and he works full time, I'm not going to try to make out he's a cripple or anything because he certainly isn't. However there are occasions when his hands and/or legs seize up and he can't manage to do things in the house or get about to do shopping etc and I go down to clean his house/do his shopping and fetch prescriptions for him.

BUT like I said these times are few and far between in all honesty and most of the time he is ok.

Remmer

That's your reason love. What I did was get my mum to write a letter to the OR explaining the reasons why SHE needed my car and offering to buy the thing at a very low price. Mine was worth a lot more than yours but as I said, the OR just let us keep it. They do have hearts

ClaireLR

OK here's my SOA

Income
1080

Outgoings
Rent 235
Council Tax 54
House Insurance 6
Gas 40
Electric 40
Water 25
TV licence 22
Phone 50
Road tax/MOT 20(saved every month)*
Car insurance 40
Petrol 100
Maintenance for car 30(saved every month)*
Breakdown cover 22
Housekeeping 180*
Cat litter/food 20*(for 2 cats)
Clothing/footwear 40*
Dentist/prescriptions 12(saved every month)*
Pet Insurance 15 (for 2 cats)
Hairdressing 10*
Internet and TV 36

= 997

1080 – 997 = 83 (surplus)

The things I have put an * by are things that I'm wondering if I would be allowed a little more for, for instance I work in the NHS and have to look smart so £40 isn't really a lot when you consider how much a pair of decent shoes or a new suit is.

I'm also not sure if there are things I've missed that I should be allowed, Ive been doing a DMP with Payplan for a while now and you re not allowed anything in the way of tobacco (I do smoke but manage to cut back on other things to afford this), savings for birthdays/xmas, any money for nights out etc plus other things I cant think of at the moment, is this the same in bankuptcy or are they more "lenient" with things?

Comments please!!

ClaireLR

Blind as a bat please let me know how you get on!