Car ownership

Saab123

Hi, I am looking for some advice. I'm considering bankruptcy due to over 40k's worth of unsecured debts. I think I understand most of the process, however I am concerned my wife will lose her car. It was paid for using my Visa debit card but it is in her name and used by her daily. It was bought last Mid 2015 and I am considering applying for bankruptcy early next year as I am expecting a large tax bill at some point this year which I already know I will not be able to pay. Is the car at risk as it was paid from my bank account? Also, how far back would I need to provide bank statements for? Am I worrying about nothing or right to be concerned about the car? Any help appreciated.

A4445

The OR went around 2 years back, i didn't provide any statements, when I went to the face to face interview the OR had several files they had requested them from the banks and credit card companies.

TheGardener

It depends a great deal in how much the car is worth? If it's current value is less than £1000 and you can demonstrate a need for it then the OR should be ok with it. If it is worth more than £1000 then the OR will almost certainly want to realise it as an asset.
One option would be for your wife to buy it off you now (at a realistic price)before BR or you could sell it - buy one for less than £1000 and then use the remaining funds to pay for the BR fees ? That would probably be acceptable.

Johnsmith2016

How much is the car worth? Were you essentially insolvent at the time of purchasing the car,?

Saab123

Thanks for replies so far. We actually have 2 cars. One is worth around 5k and the other around 3.5k. Both were paid for from my account but both registered in my wife's name. At the time we bought the cars we had enough in the bank to clear most of our defaulted debts but I lost a job and that has meant we have used all of the savings to keep us afloat. I think my best option is to sell the cars and use the money to fund the BR.

Dandytf

Saab123 wrote: »

Thanks for replies so far. We actually have 2 cars. One is worth around 5k and the other around 3.5k. Both were paid for from my account but both registered in my wife's name. At the time we bought the cars we had enough in the bank to clear most of our defaulted debts but I lost a job and that has meant we have used all of the savings to keep us afloat. I think my best option is to sell the cars and use the money to fund the BR.

With 40K -Is a DMP an option,where you can keep you cars and include running and repair costs in your new budget?

TheGardener

In short - in BR both these cars are likely to be sold and, if you could demonstrate a need (rather than want) for 2 cars - you may be a allowed to purchase 1 x< £1000 cars. Your wife would be expected to buy her own.

Saab123

Dandytf wrote: »

With 40K -Is a DMP an option,where you can keep you cars and include running and repair costs in your new budget?

I think it is an option, however i think the tax debt will force me into BR anyway. I'm in a place where I just want to be free from it all and if it means we lose our cars then it's a relatively small price to pay. I think my best option is to plan for an early 2016 BR and sell the cars asap to get me in the right place. If I was to sell the cars and spend some of the money on the house for essential repairs (we need a new boiler), would that be an acceptable spend?

philnicandevan

Saab123 wrote: »

I think it is an option, however i think the tax debt will force me into BR anyway. I'm in a place where I just want to be free from it all and if it means we lose our cars then it's a relatively small price to pay. I think my best option is to plan for an early 2016 BR and sell the cars asap to get me in the right place. If I was to sell the cars and spend some of the money on the house for essential repairs (we need a new boiler), would that be an acceptable spend?

It would BUT be an acceptable spend, the cars however need to be sold for market value otherwise the receivers would start looking at your sales if the vehicles were sold for considerably less the market value....as far as essential repairs keep ALL receipts etc should they query where the cash went

millie84

Does anyone know how it works with vehicles I have access to but do not own?
The form asks me to declare any vehicles I use regularly.
My partner has a car (which he bought and pays for insurance and upkeep) and I use it a few times a week, and fill it up with fuel once a month or so.
He has also bought a motorcycle which will be used mostly by me for commuting. I am paying the insurance and tax on the bike, and I will be paying for petrol during the week, once it's on the road. It's currently under repair (which he is paying for).

mike864

Saab123 wrote: »

I think it is an option, however i think the tax debt will force me into BR anyway. I'm in a place where I just want to be free from it all and if it means we lose our cars then it's a relatively small price to pay. I think my best option is to plan for an early 2016 BR and sell the cars asap to get me in the right place. If I was to sell the cars and spend some of the money on the house for essential repairs (we need a new boiler), would that be an acceptable spend?

From experience I would advise that you sell, use We Buy any Car for the valuation [I slipped up & actually used what I felt was the retail market value...dumb] took a few letters arguing the toss with the Trustee to see my point, never actually did so my employer wrote to him & confirmed, no car, no job - he backed down.

Buy a cheap run around, replace the boiler & use the balance for 'household expenses' & BR fees if necessary.

Good luck

Mike