Hiding From Debt Collectors and Owning a Vehicle

michael1983l

Aeneid85 wrote: »

You would basically need to live off the grid for them not to find you.
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Yes unfortunately this is what I am having to do, it isn't pleasant at all and I can't even have a normal bank account, so those that may have read this and judged me couldn't be further from the turth. It would be less painful to pay them if I could than live like I do currently. Unfortunately as I have stated I have to pay a loan that my parents got for me, in full, every month as they both earn minimum wage and couldn't afford it if I stopped or reduced paying. I am not going to put them into financial difficulty because of my own mistakes.

Aeneid85 wrote: »

If you are in so much debt, I'm sorry but you can't afford a car. Period. You would have to pay for the car, the insurance, MOT, tax, maintenance.
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Public transport and and taxis required for work come to around £120 a month. I have worked out I can run a car for roughly that or slightly more, but I could offset that with my ability to get my food shopping from places like Aldi.

Aeneid85 wrote: »

Bankruptcy may actually be the lesser of two evils. It would absolve you of your debts, you can start to get your feet on the ground, you would no longer have to hide and you could concentrate on paying back your parents.
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Not possible for me to pay my parents and go bankrupt at the same time, I wish it was. However I do need to go bankrupt as I'm in 45k worth of debt with less that 100 left over to pay debts with. IVA is not an option and under a DMP it would take about 30 years to pay off.

Aeneid85 wrote: »

To be honest, I think that your best bet is to contact either the National Debt Helpline or your local Citizen's Advice Bureau.

Already done that, they advised bankrupcy, however they could not advise on debt to parents other than treating them the same as all my other creditors and handing them over to the recievers.


As you can see quite the pickle.

Any parents out there thinking of bailing out their children. DONT.

heartbreak_star

Why isn't IVA an option?

HBS x

michael1983l

heartbreak_star wrote: »

Why isn't IVA an option?

HBS x

Because I would have to pay a minimum of 200 a month and I don't have that.

sharp82

I can see why you wouldnt want to do this, but....

Could you put the car and insurance in your parents name, and then add yourself as a named driver?

michael1983l

sharp82 wrote: »

I can see why you wouldnt want to do this, but....

Could you put the car and insurance in your parents name, and then add yourself as a named driver?

It is an option but one I'd prefer to avoid. I have exposed them enough already without possibly exposing them to insurance claims in their name too. I want to get all of my problems in my name only so that I cannot effect anybody else. Having these problems is terrible but having these problems that are impacting on other people too is even worse.

oldsmokie

It's good that you want to pay your parents back but for the reasons stated you can't prefer them before you go bankrupt. There are very obvious reasons for this.

Have you discussed this with your parents? If not, it may be a good idea to do so.

As I understand it there is nothing to stop you starting to pay them back once you have been discharged from bankruptcy and this usually lasts for a year. If they are able and willing to wait then you could proceed with the bankruptcy quite quickly. Before doing so you should speak to a debt charity or someone here may tell you that I'm wrong.

[Deleted User]

sharp82 wrote: »

Could you put the car and insurance in your parents name, and then add yourself as a named driver?

I don't think Fronting is going to help the situation.

[Deleted User]

why not give your parents cash to buy the car, put it in their name, and they could insure it and you be a named driver on the insurance. Legally it's not your car, your parents are letting you drive it!

heartbreak_star

That's horribly illegal.

HBS x

DaisyChainMaker

If you cant afford to pay debts how can you afford to buy a car? These things will be looked at when you go bankrupt as the official receivers look at all purchases in recent past and your outgoings. If they don't see your car as a necessity (banger or not) they will take it.

I know this as they took mine when I went bankrupt as said I could get public transport to work and having a car for children days out was not a necessity.

You need to stop worrying about such things, if you have been advised to go bankrupt then that is what you should do. Not trying to hide and beat the system or break the law. You will feel better once it is all settled. If your income is so low you can't afford to pay anything towards debts after your bankruptcy you can save up then for a car, and repay your parents. I found that going bankrupt really lifted the stress and I felt so relieved to be able to budget my life and not have to worry about avoiding debt collectors and phone calls again.

I still dont have a car, but I have learnt to live without one now and to be honest it is easier as no worries about a sudden large bill if car goes wrong, or worrying about mot and tax ... easier to budget even if you do have to pay for taxis occasionally.