Car after bankruptcy

Adamanta

Hi! :beer:

I have declared myself bankrupt in May last year, so 4 months left to go. I got IPA too for over 2 years. Currently I do not have a car. But really would like to buy one. I do not want to buy it now, as I do not want to ask OR permission, justify why I need it, do another SOA as current one is pretty generous, etc. Prefer not to poke the bear :rotfl:
Also, I want to get decent car that I can drive for several years and that will cost significantly more than 1K allowed.
Once discharged in May, do I still need to ask permission from OR to get a car given that I am paying IPA? Can I buy it myself or do I have to ask my dad to buy it on my behalf? :eek:

TheGardener

You are free to buy a car at any point - how you do it is the question..
The IPA is for 3 years from the date of BR. Until you are discharged in May you cannot get credit for more than £500 without informing the loan provider.
It will be nigh on impossible to get credit after your discharge but if you are in a position to have a friend/partner help you buy one then go ahead.

However, if you are saying your IPA is so generous that you can afford to buy a car outright - then depending on how you intend to pay, there may be some questions as to how you could afford it? If its just an old run-around then fine.
Have your circumstances changed since your SoA was provided?

Poking the bear is generally a good idea but there are circumstances where you are legally obliged to talk to the OR such as having a change in your income/expenditure for better or worse)In which case you must talk to the OR. However, you do not need permission to change the way you budget.

If what you are asking is can your IPA be reduced to take account of making payments for a vehicle, then the OR would expect the car to be a) necessary - need not want. b) of proportionate value (i.e prudent value) c) affordable

Clouds88

How are you thinking of paying for the car? I am going to be discharged in May (cannot wait) and then I will start to save for one, we won’t be able to get credit for a good while and I don’t have enough disposable income to just afford one, hence no IPA for me.

Adamanta

Thank you all for the questions.
There are no changes in circumstances.

I would save up for the car. Might get some financial help from dad.Obviously I would not be buying brand new Range Rover :rotfl: I am looking to get something for 4-5K.
I have put in SOA costs for public transport based on monthly bus passes for myself and child, but mainly we were relying on the cycles, so managed so save there. Also, saving on groceries, going out, etc.

Really the question is, do I need to tell OR that I have bought the car after discharge in May, or do I just continue paying my IPA without saying anything?

Adamanta

Just to be clear, I am not planning to ask for IPA reduction based on vehicle costs.

bradders80

Where are you saving this money up? Be aware the OR is permitted to look at your bank accounts at any time and could nab that money. My trick was to ensure there was hardly ever anything in my bank accounts beyond what I absolutely needed every month. Any money allocated to things but not spent (like you say public transport) was stuffed in the sofa or loaded onto travel money cards!

The OR might ask questions about where the car appeared from, so have answers. Don't say you saved up for it because if you're undischarged, that car is theirs. I presume you will move public transport budget to car running?

lisyloo

Apologies if I'm stating the obvious (don't know) but are you aware that you will need


Insurance (more expensive if you've got little driving experience and zero no claims)
MOT
Tax
Repairs
Servicing

Consumable e.g. tyres
petrol, parking


You might be able to skimp on the servicing but a lot of that list is mandatory by law.