DRO and self employment

The_fog_has_lifted

Hi guys and TIA for the reply.
I am looking at applying for A DRO to help with my debts, its not a decision ive made lightly as ive been working so hard to clear the debts but my family situation has severely changed and now my income will be hugely reduced.
I am continuing to study but have switched my nursing degree credits to open university as i just cant juggle work commitments and childcare for 7 kids anymore and have to work 13 hour shifts, plus the childcare costs were crippling me and I now am subject to the benefits cap which was paying £300 per month of my rent that I now have to pay.
This in mind i took my last paycheck and bought some cloth nappies and set up a small business giving nappy advice and selling the cloth nappies. It doesnt pay brilliantly but is better than nothing and i can run the business alongside my childrens commitments.
I have a car that i worth around £1500, though i didnt pay this for it as it was my mums. the car is for the business to transport stock to buyers and to attend the childrens centres to give nappy demos and to sell the nappies at the local market.
will this mean that my DRO will fail due to having the car?? I could essentially give the car back to my mum but i am the registered keeper of the car and dont want to get into trouble for fraud or something.
i hope i can go ahead as i cant afford the £800 fees for bankruptcy.
warm thanks
foggy

bell123321

You need to get it valued on parkers I think, how much do they value it at?

Sorry I can't really help just know the limit is £1000 otherwise your not entitled but someone else may have a better idea.

fatbelly

The registered keeper is not necessarily the owner. If your mum still regards the car as hers, then there is no issue.

However if it is yours then it needs to be valued and, if valued at over £1000 the DRO application will be rejected. Well, in practice you would not submit it.

If it's under 10 years old then Parkers will give you a free valuation and you must use Parkers.

If it's over 10 years old then do a search on wisebuyers and post the resulting valuations here for some opinion!

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wba31

The other asset to be careful with is your stock. As you are a sole trader and stock you hold is an asset so is currently limited to £300 value.

The_fog_has_lifted

wba31 wrote: »

The other asset to be careful with is your stock. As you are a sole trader and stock you hold is an asset so is currently limited to £300 value.

i never hold more than £250 stock anyway.