Bankrupt at 10 am yesterday, worried about car

Poorcouple

Hi All,

My partner was bankrupt yesterday morning and all went well.
Was a teary time but I think it was all worth it as we can now start to move forward with our lives without the worry of massive debts.

The Judge was helpful and said that IVA's are a stupid idea, and BR is usually the best way out... In this case it certainly was.

He said we wouldnt be able to keep her Mobile phone contract (£35 a month) and its unlikely a BR would be able to keep the car.

The car is a 7 seater as we (nearly) have 4 kids. It is also worth around £900, and owned outright. The car is essential for my partner to get to work as there is no public transport available. It is also required by me, on occasion, for work. It is also necessary for domestic use. (shopping for a family of 6 is impossible on foot!!)

Do you really think we will have a problem keeping the car?

If we are asked to part with it... Could she sell the car to me and use that money to pay creditors? I dont think theyll take it, but we need to be prepared for the worst...

Many thanks in advance.

And also, many thanks to those who provided excellent advice before we went BR. It was very welcome. x

JCS1

Sounds like you had a judge who didn't know much about BR. The mobile phone will be down to the provider as to wether they cancel or let you continue.

The car is down to the OR to decide, you need to show it is essential rather than a luxury.

PippaGirl_2

The judge is not an expert on what allowances are allowed within BR. From what you say the car is needed and due to its value would be exempt, so don't panic, just wait for the OR to ring and talk it through with them. They are the experts.

Some OR's have allowed money for mobile contracts but most don't if they are high like your partners. Maybe though money can be found within your partners allowances for other things to continue paying it if she wants to. Mobile providors rarely cancel them even if they know about BR. However, contracts are the dearest way of using a mobile phone and any contract signed before BR is cancelled by the BR and any debt for the rest of the contract cannot be claimed by the provider so now is a good time to escape the high costs. A sim only deal is far cheaper, I pay £10.50 a month for unlimited texts, 300 minutes and 500mb data with Vodafone.

kepar

PippaGirl wrote: »

The judge is not an expert on what allowances are allowed within BR. From what you say the car is needed and due to its value would be exempt, so don't panic, just wait for the OR to ring and talk it through with them. They are the experts.

Some OR's have allowed money for mobile contracts but most don't if they are high like your partners. Maybe though money can be found within your partners allowances for other things to continue paying it if she wants to. Mobile providors rarely cancel them even if they know about BR. However, contracts are the dearest way of using a mobile phone and any contract signed before BR is cancelled by the BR and any debt for the rest of the contract cannot be claimed by the provider so now is a good time to escape the high costs. A sim only deal is far cheaper, I pay £10.50 a month for unlimited texts, 300 minutes and 500mb data with Vodafone.

Where did that piece of information come from?

We kept 3 contracts going throughout our br's, I had 2 and my wife 1.
I disagree that contracts are the dearest way as my wife's phone costs over £500 and with unlimited texts call and internet it is far superior to your contract.If you take out the price of the phone , she is getting all that for about £15 a month.

The only advantage you could have is that if you declare br you can keep your phone and the get a sim only deal.

PippaGirl_2

kepar wrote: »

Where did that piece of information come from?

That is what I was told by my OR. It's up to the provider whether they allow you to continue with it even so, and most will, because as you say they have given you the piece of equipment that cost the most and so they only make their profit by your continuing to pay the monthly fee so they'd be daft not to.

mattannar

I kept mine as well, who tells the provider? I didn't.

Skint_but_Optimistic

I think you are most worried about the car, who is named as owner at DVLA?

fatbelly

DVLA doesn't record the owner - it records the registered keeper, which is not necessarily the same thing. Who bought the car might give us a pointer to who owns it. If that was you and you can prove it then it isn't an asset owned by the bankrupt... though I guess she's already declared it on the statement of affairs.

The OR may give you the option of buying it if it isn't exempt, and that could be for a reasonable sum.

catcatcat23

Poorcouple wrote: »

Hi All,

My partner was bankrupt yesterday morning and all went well.
Was a teary time but I think it was all worth it as we can now start to move forward with our lives without the worry of massive debts.

The Judge was helpful and said that IVA's are a stupid idea, and BR is usually the best way out... In this case it certainly was.

He said we wouldnt be able to keep her Mobile phone contract (£35 a month) and its unlikely a BR would be able to keep the car.

The car is a 7 seater as we (nearly) have 4 kids. It is also worth around £900, and owned outright. The car is essential for my partner to get to work as there is no public transport available. It is also required by me, on occasion, for work. It is also necessary for domestic use. (shopping for a family of 6 is impossible on foot!!)

Do you really think we will have a problem keeping the car?

If we are asked to part with it... Could she sell the car to me and use that money to pay creditors? I dont think theyll take it, but we need to be prepared for the worst...

Many thanks in advance.

And also, many thanks to those who provided excellent advice before we went BR. It was very welcome. x

I was in your position 3 years ago - I owned a golf gti worth £1000 and two very young children.
They did not want the car - It worried me half to death as well however it was worry over nothing because we kept the car and it was never even mentioned. It is not worth their effort when a car is not worth much.

If you use it for work they will deff not take it - we didnt use ours for work only for shipping the kids around.

If it is any consolation after the initial stress wears off - it is brilliant to live life free from the debt and aggravation that comes with it. Enjoy you family and put the experience behind you but do remember to keep an eye on your credit file in about a years time because non of my creditors took any of the balances off so there was a lot of letters sent out and checking took place.

I think in your situation with hubby using car for work and you with nearly 4 children there is not much chance they will take your car.

Chill the hard part is over :j

catcatcat23

oh, I meant to say we kept 2 mobile phone contracts for £35 each and the or did not tell my landlord or contact him for any reason. That was the other thing I worried about. There are hundreds of ppl forced to go br and that is the punishment. I think or's can understand that people need phones etc.