Just been made bankrupt!

helensconnick

Hi - I'm a bit new to this so bear with me!!

My partner and I were both declared bankrupt yesterday and although we should be relieved we are both on tenterhooks waiting to hear from the OR! our biggest worry is the car - my partner drives around 120 miles, five days a week to work and back which means he needs a pretty reliable car, although ours is an 04 plate it has nearly hit 50,000 miles and this will continue to rise, its also diesel so I fuel economy is pretty good - will the OR take these things into account? particularly my OH mileage - if they make him get a cheaper car he could end up having to replace it before we are even discharged - and what would we buy a new car with???

Our other concern is how far back/how much detail do they look at our spending? although we have been better lately there are some purchases in the past which might not look too good - although the purchases were made before we realised how much debt we were in we want everything to go as smoothly as possible!!

Thanks

rog2

I can only assume that Yant1's suggestion was made as a joke - please don't even consider the Provident at 177% apr.

Seriously though, you can try and convince the OR that you need the car for work, but if the OR decides that you must forfeit the car, then the OR must give you some cash in order to purchase a cheaper one.

PixiePie

A special verbal thanks to Phil there, as it's the first thing that's really really made me smile today. Thank you Phil - hope tomorrow is like the giggle you just raised

philnicandamy

Yant1 wrote: »

Why is it idiotic, name all the other companies that give a bankrupt a loan?

yaaaaaaaawn


it's your advice thats idiotic...I take it your not bankrupt yourself then? the last thing someone needs when posting here is advice to run up even more debt reccomending companies with astronomical APR rates....funny though your answers across other posts remind me of someone

philnicandamy

when you have a valid point please come back and I'll happily discuss with you

till then....it must be past your bedtime?

Conor_3

helensconnick wrote: »

our biggest worry is the car - my partner drives around 120 miles, five days a week to work and back which means he needs a pretty reliable car, although ours is an 04 plate it has nearly hit 50,000 miles and this will continue to rise, its also diesel so I fuel economy is pretty good - will the OR take these things into account?

Tha value is dependent on the market value. If it's over £1500 - which is pretty much a given, it's virtually guaranteed you'll lose it no matter how much it's needed for work. The OR isn't interested in how economical it is, just how much it'll raise to repay your creditors.

fermi

Hi helensconnick.

helensconnick wrote: »

My partner and I were both declared bankrupt yesterday and although we should be relieved we are both on tenterhooks waiting to hear from the OR! our biggest worry is the car - my partner drives around 120 miles, five days a week to work and back which means he needs a pretty reliable car, although ours is an 04 plate it has nearly hit 50,000 miles and this will continue to rise, its also diesel so I fuel economy is pretty good - will the OR take these things into account? particularly my OH mileage - if they make him get a cheaper car he could end up having to replace it before we are even discharged - and what would we buy a new car with???

The OR has to walk a line between allowing you to meet your 'reasonable domestic needs' and recovering assets/money for your creditors.

You need to prepare your case for either keeping the current vehicle or replacing with a suitable one.

For details of the criteria the OR looks at, and how they will make the assessment see:

http://bankruptcy.informe.com/viewtopic.php?t=72

The most important point is that it is up to you to make your case to the OR.

helensconnick wrote: »

Our other concern is how far back/how much detail do they look at our spending? although we have been better lately there are some purchases in the past which might not look too good - although the purchases were made before we realised how much debt we were in we want everything to go as smoothly as possible!!

The normal period is 12 months, although they can go back up to 5 years if they think anything underhand went on.

In your case I wouldn't worry. The OR is used to seeing this sort of thing, and at worst you might get a verbal slap on the wrist.

scaredwitless32

fermi wrote: »

Hi helensconnick. .



The normal period is 12 months, although they can go back up to 5 years if they think anything underhand went on.

In your case I wouldn't worry. The OR is used to seeing this sort of thing, and at worst you might get a verbal slap on the wrist.

:eek:eeek! Thats scary!!

fermi

scaredwitless32 wrote: »

:eek:eeek! Thats scary!!

Yep. But also very very rare for them to go back as far as 5 years.

Apart from checking out the odd historical property transaction, I can't remember hearing of an OR going back much more than 2 years in a normal reasonably straightforward consumer credit/debt case.

rog2

Fermi is correct - in my case they went back two years, but in the side office, where the OR interviewed me, the whole of one wall was stacked high with boxes of accounts for ONE company - the labels dated back five years. Obviously this was a special case, but it shows that they can, and sometimes do, check everything.

scaredwitless32

Good grief, you must REALLY have to love your job when your an OR........