Two cars?

G192

Hi
I have a question about having 2 cars. But a bit of history so you know the situation.
Myself and my wife along with our children live in the countryside some distance from our respective places of work.
In March of this year I went bankrupt and all has been well up to now.
We have 2 cars. Mine is an old rover worth around £400 and because I need the car to get to and from work I already know I can keep it. My wife's car however is only 2 years old and worth approx £6500 going by the Parkers guide. It was bought with a personal loan, not car finance, in my name. On the bankruptcy forms the car was listed but as wife as the legal owner. I have received a letter from the official receiver requesting details about the car.
Having done a bit of internet searching, my interpretation is because the car was financed in my name, it is likely we will lose the car. Ok so it's a shame but in reality it's fair enough. What I cannot find out is that my wife does need a car for work, and a reliable one at that because she also uses it for her work.
My question therefore is how will this be viewed by the official receiver, and if they take the car will we be allowed an allowance to get another cheaper car?
Without 2 cars one of us will probably have to give up our job. That would probably be myself as my wife earns more than I do.
Your thoughts would be much appreciated.

patman99

Can your wife not take out a loan to 'buy' any interest in the car from the OR if they insist on the car being part of the BR ?.

G192

I don't think wife would get a loan as her credit rating isn't the best! Even if she did it would be another monthly payment to make and with household budget already taken into account to calculate payments to official receiver we wouldn't be able to afford it. Nice idea though.

redmalc

The car should be available to be realised on behalf of your creditors,when they take it of you the best you can hope for is a £1000 one off payment to get a replacement.

puxie123

I have been bankrupt before and they didn't take my car as I needed it for work, as long as they can see that 2 cars are needed by you both with kids etc then I can't see it being a problem.

redmalc

Pixie it depends on the value of the vehicle

standalone

If the car was worth 650 pounds then it would not be a problem, however you have stated that the book value is 6500 pounds therefore it may be of interest to the OR I am afraid.
I guess time will tell, best of luck with it anyway.

TheGardener

You will need to negotiate with the OR. The 6.5k car is obviously an asset the OR will want to realise but if your OH is working, she will have to buy an older car for the time being. I bought a car for <£1000 5 years ago and it hasn't let me down yet. You could in theory sell it - spend £1000 on a replacement and then (crucially)hand the balance from the sale over the OR, they may accept that.

dojoman

puxie123 wrote: »

I have been bankrupt before and they didn't take my car as I needed it for work, as long as they can see that 2 cars are needed by you both with kids etc then I can't see it being a problem.

Wrong, wrong, wrong!!!!!!!!

G192

I've sent all the details requested to the OR so just got to wait now. I am expecting to lose the car but am hoping he will let me have an allowance for another. Without it we can't both work so I am hoping the OR will realise this and be generous! My wife loves her car but she understands she will have to have an older car. All we can do now is sit and wait for the OR decision. Thank you all for your replies.

LoveLifeAgain

G192 wrote: »

I've sent all the details requested to the OR so just got to wait now. I am expecting to lose the car but am hoping he will let me have an allowance for another. Without it we can't both work so I am hoping the OR will realise this and be generous! My wife loves her car but she understands she will have to have an older car. All we can do now is sit and wait for the OR decision. Thank you all for your replies.

Good Luck G192, please let us know how it goes.