Bankruptcy with only wife’s income

fatbelly

AMS21246 wrote: »

Thanks for your thoughts guys. If push comes to shove I could ask my wife to buy the van off me.

You are likely to be given that option (buying it from the Official Receiver). However if you can make a case for it being essential (that does sound unlikely) a sub 1k car can be an excluded asset.

https://www.citizensadvice.org.uk/debt-and-money/debt-solutions/bankruptcy-2/is-bankruptcy-right-for-you/belongings-impact-of-bankruptcy/

AMS21246 wrote: »

With regards to the shares, if I sold them before BR and used the funds to clear some household debts - council tax, but oil for the property, pay vets bill and get car serviced, is this going to cause any problems.
Also with regards to the Household bills and rent, seeing as I don’t contribute anything financially, is this going to be complicated and raise issues with the OR interview?

There is the danger of payments being seen as 'preferential' but as long as you have a bit of a gap before submitting your application, and you can show those payments are for essential or priority items, you would probably be OK.

Annie35

My situation was similar AMS, zero income & £700 cash (I'd pulled from bank account in case it was 'held' so there was a record)

My OR was great, he muttered about taking the cash but let me keep it as basically he felt taking it would put me in debt as it was to contribute to the soa.

Also in your case as it's a vehicle you need it to get a job, I'd hazard it'd be ok.

Fill your soa out as a household so full rent, full c.t etc. Anything you pay as a lump sum (oil etc) break down into a monthly so it's still accounted for. Include haircuts, holiday, presents & savings. You may not actually pay out these but it's a small allowance you are allowed.

The form asks how much your income is, if you go on benefits or get a job you'll be reassessed but today no income the OR won't be bothered in the slightest to even question you for repayments (this is what my or said, it wasn't worth the time)

I'd use any cash in bank &/or shares to get your household bills up-to-date & keep maybe 1/2 a months cash in hand you should probably be ok keeping that, any leftovers will be taken thou.

Be prepared to discuss the business, this was 2/3s of my interview despite being closed way before problems started (& not even related to my issues!)

& have your NI number to hand too when they ring

John_G_Jones

maxmycardagain wrote: »

assuming at auction it makes anywhere near the £700


to much risk for very little return

once uninsured and SORN (if parked off road, though that may incur storage fees prior to collection) its value declines...

I genuinely don’t get your point here. Even if it’s only a couple of hundred pounds that’s a couple of hundred pounds that a creditor could have towards what they have lost.

Flyright

Absolutely. The vehicle essentially becomes the OR's property and steps will be taken to realise it as an asset.

broaps

John_G_Jones wrote: »

I genuinely don’t get your point here. Even if it’s only a couple of hundred pounds that’s a couple of hundred pounds that a creditor could have towards what they have lost.

Except no creditors will see any of this money - it will all go towards the ORs costs which are paid before any creditors.

luvchocolate

broaps wrote: »

Except no creditors will see any of this money - it will all go towards the ORs costs which are paid before any creditors.

Spot on.... my trustees bill was over £23,000
My car had a value of £1400 and it was exempt

maxmycardagain

John_G_Jones wrote: »

I genuinely don’t get your point here. Even if it’s only a couple of hundred pounds that’s a couple of hundred pounds that a creditor could have towards what they have lost.

peanuts...

read other replies

it wont get taken

JCS1

maxmycardagain wrote: »

peanuts...

read other replies

it wont get taken

It depends on the circumstances of the person going bankrupt and if can be exempted or not. if not, it get taken regardless of value. I've also known for vehicles which were SORN to be taken.

Annie35

Hopefully op will come back & tell us what happens as we can only speculate.

OP i'm going with if you needs a vehicle they're not going to take a sub 1k vehicle just to replace with a ... sub 1k vehicle.

Flyright

That's the whole issue..if the OP is not in employment then the OR is not likely to consider the vehicle as essential to the OP. Therefore the OR will quite rightly look to realise the vehicle as an asset of the bankruptcy estate.