Had OR Interview - Can't keep car :(

Claire1974

Eeee well I had my OR interveiw Tuesday and was told I won't be able to keep my car - Was told due to it being worth over 2k it wouldn't be an option to keep it. I work shifts and there is no public trasnport, plus I have a heart murmur and high blood pressure (not that this would make a difference!) - Anyway my car is a Toyota Aygo which is the most economical vehicle out there at the moment - 1 litre - cheap to insure and run - mega mpg and is worth in the parkers guide about 4k!

Anyway the valuer came on Wed and said that I could buy it back for £4700 - the £2000 you get as an allowance for a car - so I would have to come up with £2700 to keep it - ermmmmm where would I get the cash from ??? I'm BR.........

Sooo my question is - the 2k that you get to buy another car - when do you get it and how? I really can't be wihtout a car for work.

Has anyone else had a similar experience??

fiveyearplan

I'm thinking of Br and I owe £2,000 on my car and think it must be worth about £4,000. Is this £2,000 limit recognised everywhere or dependant on your OR?

ClaireLR

I think all OR's use their own discretion when dealing with cars, as well as whats allowed for certain things on your I&E. This is hugely unfair IMO and makes the whole BR process more stressful due to the uncertainty.

Claire - do you think the car is worth £4700? I know Parkers valued mine at £1300 but I know its worth nowhere near that due to cosmetic damage and more miles on the clock that Parkers had for a car of my age. It might be worth getting an independent valuation and taking that back to the OR dependent on what the car is valued at. As for where you can get a car for £2k from, a private sale might be your best bet, but obviously you need to know what your buying. Do you have any friends/family with any knowledge of cars??

fermi

The £2000 figure comes from here:

http://www.insolvency.gov.uk/freedomofinformation/technical/casehelpmanual/M/MotorVehicles.htm

viii) What if the vehicle is an exempt asset but has value?

Where a vehicle is exempt but it is worth an amount which justifies its replacement with a cheaper alternative under section 308 of the Insolvency Act 1986, a guideline maximum figure of £2000 has been introduced for an allowance for a replacement vehicle. The official receiver may exceptionally exceed this figure depending on the purpose for which the vehicle is to be used, but it is to be adhered to as frequently as possible. The £2000 limit may not be exceeded however, where the vehicle is treated as exempt because it is necessary to meet a basic domestic need.

An exempt vehicle should only be taken on the basis of providing a replacement if there will be a net realisation of a minimum of £500 to the estate after taking into account the cost of an agent’s fees and a replacement vehicle. A third party contribution equivalent to the estimated net value to the estate may be accepted to avoid seizure, sale and replacement.

Depending on the circumstances of each individual case the payment to purchase the replacement vehicle may be made to the bankrupt directly or to the vendor of the vehicle. It is recognised that a bankrupt may be able to obtain a better deal to purchase a vehicle by negotiating a private sale or attending a car auction and in such circumstances immediate access to cash is required. If an allowance from the proceeds of sale is made directly to the bankrupt then the official receiver should request evidence of the purchase of the vehicle within 21 days.

For more information please see Case Help Manual part: Exempt Property.

The entire link is really worth reading through.