Exempt car of excess value

Sheabutter

Hi all,


Does anyone here have any experience with insolvency/bankruptcy please?

I declared myself bankrupt just before Christmas.
I am a full time career, and a part time student. I care for my two young children who have disabilities. I have no assets, apart from my car which is worth £4500. As I am in receipt of state benefits I have no IPA.

The OR has accepted that my is exempt (due to the nature of my ‘job’) but has advised that because it’s of high value, it will need to be sold for a cheaper alternative worth £1000. The difference will go to my creditors.

I’m trying to dispute this. I’d like to retain my vehicle because realistically I wouldn’t be able to purchase a sustainable and durable replacement of that value.
Both my children have very, very frequent appointments/ therapies at community centres and hospitals within our city. This means I have to drive several miles every week. I’ve had to leave my career because of this as I was struggling to keep up with the regular therapies/appointments etc whilst being employed.

I understand there is legislation that permits exceptional circumstances to be taken into consideration, eg; a taxi driver needing a car of higher value due to the nature of their job.

I’ve submitted my views to my OR who has passed it on to the Assistant OR for consideration.

Just wondering if anyone has any experience
In this? I’m absolutely terrified, and worried about what will happen. My daughter has mobility difficulties and is a blue badge holder. She relies on me (car) to get around.
If they decide to sell my car, I will be given a few days to find a replacement. This will be impossible, there’s no way I’d even be able to get out with my two kids with special breed and no car.

I have no third party to purchase the car for either.

TIA

Clouds88

Hello,

I had to prove my car was worth under £1,000 because the OR had a higher valuation and they accepted mine in the end. I know this is different but they do seem quite strict about it.

Does your current car have adaptations for your disabled child’s needs? If they do, I think that would be a strong argument. If they don’t then I think they would argue that a car worth £1,000 would do the same job as one worth 4,500. Did you get some advice before going bankrupt? What did they say?
Hope you find a resolution soon.

Sheabutter

Hi
Many thanks for your response.

My car is not adapted for any of my children.

The advice I was given before I went bankrupt was that I would defiantly have a strong case to retain my vehicle, given my circumstances as described above. However, regarding it’s value - I will be honest and say I was prepared that I may find myself In a third party buyer situation.

I’ve spoken to a family friend who may be willing to help me pay as a third party buyer, but the ORs agent has validated my car as the exact price price I purchased it for two years ago!

Within two years, it’s safe to say there’s definitely visible evidence of wear and tear, thousands in mileage done on the clock, and a well over sure service. The car is also a CAT D and the bumper is visibly damaged.

Can I kindly ask who validated your car? And did the OR accept your valuation without hesitation?

if the Assistant reviewer doesn’t accept my exceptional circumstances, then I will go down this route but I definitely have to dispute the amount.

HaveAGo

Who gave you the advice you would have a strong case?

Sheabutter

CAB, Step Change and a Financial inclusion officer at my local borough.

And I guess they were all correct as the OR didn’t hesitate to deem my car exempt.....

It’s just that it’s of excess value!

HaveAGo

But ultimately it is a decision for the OR.

What is the make, model and year of your car?...and mileage.

Sheabutter

Toyota aygo , 29000 , 2014

HaveAGo

With the category D marker it's harder to get an accurate value but on auto trader there is a cat N (which I believe is new name for Cat D), same year and mileage for £3999.

On the face of it £4500 is overvaluing it but not by a great deal.

Sheabutter

Many thanks for this info. I do wonder if the OR will be open to negotiate a reasonable price.

I’ve read Another option could be that sometimes the OR may give you a higher allowance for a better car.

Just waiting to hear back from the Assistant OR, then I will go from there

maxmycardagain

any valuation is pie in the sky.

a car is worth what a buyer will pay.

WBAC wont buy a previously written off vehicle on the VCAR register

maxmycardagain

HaveAGo wrote: »

With the category D marker it's harder to get an accurate value but on auto trader there is a cat N (which I believe is new name for Cat D), same year and mileage for £3999.

On the face of it £4500 is overvaluing it but not by a great deal.

pristine, not written off, retail/dealer £4500