bankruptcy help please

nat1alie2

Hello I am new on here and need some advice please. I am in debt of around 50k due to my house being reposessed. I have had advice from Stepchange and being advised bankruptcy is my best option. I have been putting it off for months now as I am scared they will make me get rid of my car. I work full time and have 2 children, one of them I have shared contact for and lives on the other side of the city. It woud make my life extremely difficult without a car. The car is only worth around £1000, however it costs me around £300 per month to run it in insurance, parking and petrol. I am scared they will tell me to get rid of it as that will then free up £300 .. can anyone advise? Thanks

Keeping_Positive

If you can show you need it for work and its only worth 1000 they will probably let you keep it. How much would it cost to get to work on pubkic transport?

Others with more knowledge will be along at some point. Good kuck its tough but worth it if you know its ghe only way to start afresh.

Keeping_Positive

Did step change give yiu a budget? It might be worth calling ghem with updated info. They really helped me.

Helpmeoutofthismess

nat1alie2 wrote: »

Hello I am new on here and need some advice please. I am in debt of around 50k due to my house being reposessed. I have had advice from Stepchange and being advised bankruptcy is my best option. I have been putting it off for months now as I am scared they will make me get rid of my car. I work full time and have 2 children, one of them I have shared contact for and lives on the other side of the city. It woud make my life extremely difficult without a car. The car is only worth around £1000, however it costs me around £300 per month to run it in insurance, parking and petrol. I am scared they will tell me to get rid of it as that will then free up £300 .. can anyone advise? Thanks

Hi, you need to make a case for keeping your car. If you need it to get to work, that is a good start! I would work out how much you would have to spend on public transport if you didn't have the car, you will probably find it's similar anyway. Also, work out how much longer it's going to add to your commute and if you will still be able to pick your kids up on time ect. As you are working there is a possibility you will get an IPA if you have any surplus income, if losing your car means losing your job there will be no chance of that!

I hope you get your car exempted but is there any possibility a relative could offer to pay the OR's interest if they insist on it being taken?

H x

nat1alie2

Thanks for all the replies, i believe a weekly bus ticket is £14 which if i didnt have kids amd work full time then this would be easy enough to manage! But its physically impossible to pick both up before 6pm without a car...So with the OR is it basically any money u have left over after paying bills etc goes to them every month for 3 years?

Helpmeoutofthismess

If you have a surplus of more than £20 they will take it all (including the £20 ) make sure you ask for help when you are doing your SOA, you need to make sure you can a provide a reasonable standard of living!

At least with an IPA if you get one if your circumstances change your IPA can be adjusted, down to zero if necessary.

H x

Euphoria1z

just state all the reasons you need to keep the car, not just work, but the kids, school trips, shopping, going to doctors, hospital, dentist, etc. I gave my OR such a long list he had to interrupt me and say ok you can keep the car.

longtermplanner

I suspect you won't have a problem as the car is worth so little. Your daily routine is based around this car and the living expenses allowed when setting an IPA (if any) are your usual domestic needs.

One thing you could do is work out what your extra costs would be if say you had to pay a minicab to pick up a child every day as you can't manage it without the car, that would come to a lot I am guessing!

Having said that, £300 is a fortune! Is there no way you could reduce this? What would you do if you suddenly lost your license?

TheGardener

hi
I don't think £300 is exceptional high - petrol, parking, tax and insurance. I would have thought that if you need the car for work and other journeys and its worth <£1000 - it's probably unlikely you will be asked to give it up.

keen_kat

Usually the OR are only interested in taking your car and getting a replacement for you if it's in excess of 2,000 in value. Judging from your needs and value of the car, they won't even touch it tbh, as it's not even worth their time at a value of 1000.

TheGardener

keen_kat wrote: »

Usually the OR are only interested in taking your car and getting a replacement for you if it's in excess of 2,000 in value. Judging from your needs and value of the car, they won't even touch it tbh, as it's not even worth their time at a value of 1000.

Most posters on here find £1000 is the norm...