CAB recommending bankruptcy (SOA page 3)

allthe7s

Sorry yes that's what they said, my dad will pay the market value £4200 for its condition and then I will use that to keep £1000 (which I know they may also make me use some or all of this to pay my creditors which is absolutely fine) , pay the £680 and pay the remainder off of my debt. 

fatbelly

I tink what the CAB advised was 'They have advised me to sell this to afford the bankruptcy fee and buy a car worth £1000. '

It's the OP who has come up with the 'sale and loan back'.

I agree with mwarby that it's best to be going into the bankruptcy as the straight owner of a car worth (on Parkers guide, poor condition) £1000 at most..

As sourcrates said, there's no need to rush into this and you don't want to be making pro-rata payments to creditors, nor going into bankruptcy with money in the bank so take some time to get your circumstances sorted. Any white goods need replacing? That sort of thing.

Going bankrupt after 5 April means that the whole of that year's council tax will be included.

allthe7s

What do you mean about the council tax fat belly? 

Sorry yes, from reading on here I got the idea of my dad buying the car and me using it, I also saw where someone's OR agreed for the parents to just pay them the market value so that the bankrupt person could keep the car. 

I dont know what you mean about any white goods, I thought buying anything now would be seen as getting rid of money that could have gone to my debtors. I have just bought myself new work shoes and my son new school shoes as we would both need them in next few weeks anyway. 

I am so unsure of how to do this, I know my soa should show no left over I've seen that advised plenty and will post up my SOA here tonight I think,but CAB said nothing looks excessive so should be ok. 

I dont know what order to do things in. Sell car first? I've had e car from new and really blinkin begrudge having to get rid of it to get an old banger that will have much higher running costs!! 

mwarby

White goods are things like, washing machine, tumble dryer, fridge, freezer

ftb-btl

I think one issue has been glossed over and that's your son's savings accounts.

If you're named on these accounts have the accounts transferred solely into your parents / parents in laws name, or these balances could be treated as assets in your bankruptcy and be used for the benefit of your lenders.

allthe7s

ftb-btl said:

I think one issue has been glossed over and that's your son's savings accounts.

If you're named on these accounts have the accounts transferred solely into your parents / parents in laws name, or these balances could be treated as assets in your bankruptcy and be used for the benefit of your lenders.

Oh no, this upsets me so much. They are only kids surely they wouldn't take their money off them   it's actually disgusting if they would. 

allthe7s

If I changed it now to my dads name would that not look like I was trying to hide assets? Obviously if they ask if the kids had savings I could honestly say "not that I have access to" 

mwarby

I suspect that the accounts are trust accounts of some form, if only to get the tax payed gross. You might want to check this with the bank that holds the savings(to clarify if held in trust) and CAB. Certainly during my IVA there was no interest in the modest savings I had for my relative. Of course if you were to try and save a large sum in a trust just before bankruptcy that would likely be reversed. If its just a simple and modest saving genuinely for the individual named children I think you'll be ok

mwarby

allthe7s said:

If I changed it now to my dads name would that not look like I was trying to hide assets? Obviously if they ask if the kids had savings I could honestly say "not that I have access to" 

That looks like your trying to hide something. This along with the scheme to keep car aren't IMHO a good idea its a good way to get your affairs looked into in much more depth than usual. If you act honestly and normally you'll find the OR much easier to deal with, you try and screw the OR the OR maybe less friendly.

Minkym00

The accounts should be ok. As long as they have your kid’s names on them then you can show they are theirs. If there is any problem you could provide statements to show they are savings accounts and only receiving money from your parents. A supporting letter from them will help if you do run into problems.

Have bank statements available as they may want to check them. Whether or not they do would depend on how old your debt is.

It’s not really possible to say if it would be better for you if your partner moving in would be better or not, post up your SOA.

If your parents can afford to buy out the interest in your car i.e. the value over £1000 that would be best for you. 

Just move the DDs you are keeping into your new account. You could stop paying them to raise the adjudicator’s fee. 

An IPA can only be put in whilst you are bankrupt. If it doesn’t happen you are home and dry. If one is put in place then it can be varied up or down during the three years it lasts for.