Some questions

Snowflake101

I am on benefits and have stopped paying all of my debts except my car finance in order to save for the bankruptcy fee, I have the following questions if anyone can help.

1) My car finance is for a second hand car bought in April 2017. It was a four year term and interest free. The car is worth about £1900-2000 according to Parkers currently. I live rurally and there is no bus service or any other local transport.

2) Do I need to declare Revolut and Monzo cards on the forms? I have about £20 on each at the moment and have only just started using them in the last few weeks.

sourcrates

How much debt do you have ?

Snowflake101

About £24k without the car finance.

JCS1

What type of car finance is it? How much is left to pay?

Snowflake101

It’s hire purchase and about £1900 left owing.

mwarby

Snowflake101 wrote: »

2) Do I need to declare Revolut and Monzo cards on the forms? I have about £20 on each at the moment and have only just started using them in the last few weeks.

Yes, although I have read (here on or monzos own forum) that Monzo will normally let you keep the account. Generally withholding/hiding information from the OR is a bad idea

Minkym00

1) You have a good argument to keep it and the finance cost is reasonable. Have you checked with the HP company that they won’t terminate the agreement upon bankruptcy? Best to check as many do.

2) Yes, declare everything. Your credit file is available to the OR and it will only look suspicious if you don’t.

3) No

4) From what you’ve said it’s unlikely that your previous bankruptcy would raise suspicion. Just be honest about it and tell the OR. They’ll check anyway and, as before, if they find something you haven’t declared then they will dig deeper. Be honest and they are unlikely to.

Snowflake101

Thank you for all the advice. I would never wilfully intend to withhold information but as Monzo and revolut arent credit cards but preloaded with my money I just wasn’t sure.

ToxtethO'Grady

You said car finance, it could be a loan rather than HP, check the agreement. I've never heard of an interest free 4 year HP, the interest is usually included.

If it is a loan you own the car and your reasons of why it's essential will help towards it being deemed exempt but the payments for the finance would not need to be made. The OR may say you have to sell and buy another for £1K but due to your reasons it is unlikely, though it is within the OR's power to say this. With the OR it is always "prove it" if you have the court order that would help.

If your income is benefits only you shouldn't have an Income Payment Agreement (IPA) however if you have any wage this may be considered for an IPA.

Your 21 year old may be expected to make a contribution, even if it's £10 per week towards the gas and electric it is something. If there's nothing it may mean they'll ask for details of your 21 years olds student loan, they don't have to give it but it may cause issues with your expenditure around household costs.

These are all general advice points as it will depend on your case examiner.

As MinkyMoo said about your previous BR better to mention it, it's usually only within the last 10 years they check. You'll probably get a 2-4 year restriction, if the OR finds out themselves it'll be longer. Your debts still get written off after a year you just are classed as undischarged for the term of the restriction.