Bankruptcy and car !

MovingForwards

"money to pay for some house work" 
Does your friend own his house, with or without mortgage?

Grumpy_chap

It does seem as though the morally correct thing is to sell the car and repay some of the £60k debts.

It seems as though OP's friend still wants to keep spending.  
"Having the money to pay for some house work and school stuff"
They can not really afford home improvements right now.  Not sure what is meant by "school stuff" - not just uniforms I assume.

macman

The household might need a car, but it doesn't need one worth £10K. Sell, buy a £1K runner and £9K is available to pay off a decent chunk of the debt owed.

bacchuscook

MovingForwards said:

"money to pay for some house work" 
Does your friend own his house, with or without mortgage?

He doesn't own a house or anything, he pays rent, and the repairs are for a cooker and a larger fridge or a separate freezer, he has 3 kids and they  live in either a 2 bedroom or a three bedroom, I can't remember. And I remember comments about having to go to supermarket for shopping twice a week. and because he started that new job with good pay sometime June 2019, so most of the earning was spent to pay off old debts and they got too comfortable assuming this is set and secure furniture.
I think he rented unfurnished and the furniture is theirs. 

bacchuscook

Grumpy_chap said:

The OP listed a fully paid car as an asset, but also then stated "about 60K outstanding, overdrafts, loans (used to pay for car), credit cards and store cards".

Is the car security for the car loan?

He had some 10-15k outstanding on the car, so he decided to take a loan to pay off the car, as there was I think £150 difference between the loan repayment and car finance monthly payment. he got a loan from the bank, so I assume the typical unsecured loan, he was making good money so I assume his credit was good enough for the bank to give him a large loan and an overdraft. 

I don't know.... I haven't seen the guy for a couple of years and he just called with this drama ! But he is a mate of mine and I am trying to help whichever I can. And when I offered to lend him something, he said no point, I won't be able to pay you back, there is no income now at all and there is nothing in the horizon, hence the Uber option etc etc.
I don't know about this license plate permit from council thing, I doubt he himself is aware of this, but he has different crowd he hangs out with so maybe they know. Ot maybe he got a license, I honestly have no idea, but will call him and update.

bacchuscook

Minkym00 said:

He will need to prove that he is an actual Uber driver for the vehicle to be exempted. Just saying that he’s ‘going to be / could be’ may very well not fly with the OR. If it is seized he won’t be left without a car, he will be given £1000 from the sale of his car to get a replacement.

Thanks.

bacchuscook

macman said:

The household might need a car, but it doesn't need one worth £10K. Sell, buy a £1K runner and £9K is available to pay off a decent chunk of the debt owed.

Thanks, I think this is the practical thing to do, now that all these details and replies came back.