Potential Bankruptcy - Couple of questions 28 February 2022 at 6:37PM in Bankruptcy & living with it 12 replies 662 views

[Deleted User]

I am considering bankruptcy and have a couple of questions.

1) My partner lives with me and rather than having joint finances I simply pay all household bills and she gives me a monthly payment for her share. Would her finances be looked into by the OR?

2) My car is worth about 3200, I don’t want to lose it as there is no transport where we live (will affect work, contact arrangements with my kids etc)….would I likely be able to keep this? 

luvchocolate

Hi the OR would usually expect your partner to pay 50% 
If they earn less than you and happy to declare their salary a %would be calculated. 
The usual limit for a car is £1000 
Is your car free from finance?
If so you'll need a valuation and it's sold at auction and you are given £1000 to replace. 
Some examiners are a little flexible mine was valued at £1500 and I got to keep it 

[Deleted User]

Her sole income is very low at the minute as she is on universal credit due to long term sickness (cancer, heart disease amongst others) so considering her circumstances she does pay a fair amount 

Could I transfer the car to my partner without it looking ‘dodgy’? 

JCS1

Don't transfer the car as the OR can reverse that.  Is there any finance on it?

[Deleted User]

No, the finance is clear as it was purchased with a personal loan 

JCS1

Have you valued it on Parkers website?

JCS1

Or is there anyone who could purchase the OR's interest on the car?

[Deleted User]

It’s valued at 3200 on Parker’s. How would that work with someone purchasing the ORs share

Minkym00

The allowance for a car is now £2000. Go on to parkers.co.uk and get a free valuation. Take the lowest valuation and if it is more than £2000 then the balance is the OR's interest. If you can find someone to buy out that interest you can keep the car. If that's not possible then the OR will claim the car, but you'll get £2000 back to buy another one. You won't be without transport.    

[Deleted User]

Ok that sounds straight forward enough, I could make that work. Is the situation the same for a DRO as I potentially qualify for one of those instead 

fatbelly

A car worth £3200 disqualifies you for a DRO. The limit is £2000.