Under DRO with Car 4 February 2021 at 4:14PM in Bankruptcy & living with it 22 replies 734 views

Malarky21

Hi can anyone help, i am currently under a DRO which i hope will end after 1 year. I have a car which was allowed as it was worth less than £1000. My problem is this car is playing up to the point that i may have to get rid of it and get another one. Am i allowed to do this? I don't think i am allowed credit at the moment more than £500. MY current car is probably only worth £500 if that so could i sell it and put some cash towards another one? Or just sell it and use public transport? Or maybe use someone else's car through my insurance? I'm not entirely sure what the rules are for all this, thanks....

sourcrates

Your DRO will end after the 12 month moratorium period ends.

You are allowed assets or cash of £1000, so if you can save to buy another one, a long as its worth less than a grand, your fine.

There are no other rules regarding cars, and you are not checked up on, you are free to use the bus if you wish.

Malarky21

Thanks. What do they use to determine the value of a car? For example I may buy one from a garage where they will add to the value to make a profit. Would it be something like Parker’s price guide?

fatbelly

Yes, Parker's Guide

Malarky21

Am i allowed a car of higher value if it is owned by someone else but registered in my name as the keeper?

fatbelly

You are allowed to use a car that you do not own.

The registered keeper is not necessarily the owner

Malarky21

Would i be allowed to have a car on hire purchase? So thats its in my name and more than £1000 but not mine until it's fully paid?

JCS1

Malarky21 said:

Would i be allowed to have a car on hire purchase? So thats its in my name and more than £1000 but not mine until it's fully paid?

That would be down to the HP Company.  Don't forget also you can't obtain credit of more than (I think) £500 whilst in a DRO

Malarky21

I'm struggling with conflicting advice now, i contacted the advisor who helped me with my dro application who said it would be risky to have a car over £1000 registered to me but owned by someone else. Also i contacted National Debtline who told me that the Insolvancy service assume that the registered keeper is also the owner and they would therefore require evidence to prove this isn't the case, receipts and bank statements from the owner, any truth in this?

fatbelly

The Hire Purchase situation would be quite complex and (if you were successful in finding HP) could open  a can of worms, particularly if the monthly payment is over £50, particularly if this isn't something sorted out at the start of the DRO.

As for running a car that you do not own, let's see what the guidance says.

V5C document
The V5C document (also known as the V5 form or logbook) records the Registered Keeper (or Keepers) of the vehicle. Legally, that's the person registering and taxing the vehicle, not necessarily the owner. Normally the owner and registered keeper will be the same, but there are occasions where they might differ.

and that's it. So anyone telling you more than this is making it up - they may be right or they may be wrong.

The DRO Team can make any enquiries they wish to, so they could require proof.

All I can tell you is that I have  put many cases through like this over the years and never had a problem.

Malarky21

I'm not going to go the HP route.
So if my partner for example bought a car for me to use so she owned it but i register it in my name (i may give her upto £1000 towards it too) i don't have to notify the Insolvancy Service of any of that?