PPI before bankruptcy

WickedWitch123

Hi again

I've tried to find the answer to this question but everything seems to relate to after bankruptcy.

If I were to receive a PPI payout a month or so before declaring myself bankrupt, would I be able to use the money for the BR fees? And what happens with the rest (if it's more than £700).

Sorry if it's a dim question
Thanks
WW

woodformoretrees

Bankruptcy only happens on the day you're made bankrupt, and I'd presume that using £700 of your PPI money to fund your bankruptcy would be a sensible use of it. As far as I know if there's surplus it would belong to the OR and they would use it to pay fees and creditors.

longtermplanner

Using this to fund your bankruptcy is a very sensible use of the money. The rest of it is just a part of your general assets so the OR will take it.

rizla_king

If you need some essentials like a washing machine - a few clothes - a new bed as the old one is knackered and so on - then get those using the left over money. Just don't be extravagant or wasteful.

WickedWitch123

Ah Great thank you everyone. I hadn't thought of using the rest to replace a few things. My car desperately needs some work so i'd use it for that probably. Its only worth £750 so i'll get to keep it I guess but it could do with some TLC haha.

woodformoretrees

rizla_king wrote: »

If you need some essentials like a washing machine - a few clothes - a new bed as the old one is knackered and so on - then get those using the left over money. Just don't be extravagant or wasteful.

Probably good idea to keep receipts for any big purchases just so you can show where the money went. It saves you worrying about it during your OR meeting.

alastairq

Its only worth £750 so i'll get to keep it I guess but it could do with some TLC haha.

Is the above based on the assertion you might have it exempted-as-an-asset?

WickedWitch123

alastairq wrote: »

Is the above based on the assertion you might have it exempted-as-an-asset?

Not sure what you mean sorry.

alastairq

In BAnkruptcy, a car is deemed an asset. This is regardless of its value.

In the past, ORs have taken cars [as assets] even if only worth a few hundred pounds...for the BR estate.

To have a car 'exempted-as-an-asset', the BR has to demonstrate [with evidence] that they have a 'need' for the car.

One example of 'need', is for commuting to & from work.

In the stickies above, this is more thoroughly outlined.

If a vehicle is exempted, then the operating costs can also be included within the SOA.

Currently, the maximum value permitted is around £1000...or thereabouts..but like all things in Bankruptcy,, there is room for negotiation with the OR.

The point I wanted to raise was, just because a car is deemed to have a low value, doesn't mean the OR would ignore it.

WickedWitch123

Oh I understand. I took the £1000 to mean that the OR WOULD ignore it. My job is a regional role where I travel to different sites every day plus commuting so I guess this will be my argument.

What does the £1000 mean?

WickedWitch123

Ah I understand (have just read the fact-sheet). The main thing I'll need to be able to show is that I need my car ie for work. If I can't show I need it then it will be sold as an asset. If I had an expensive car but i could show that I needed a car then the expensive car would be sold I would be given a grand to buy a cheaper one.