Car and bankruptcy

azmilligan71

I am considering bankruptcy as I have 25k of debt and struggling as a single parent. My major concern is losing my car..my car is worth £5,500. I live in a rural area and need my car for work and also my son has a condition where we need to attend hospital appts, hospital being a 8 hour round trip and another one being 4.5 hours trip so really need a car. Do they make exceptions sometimes due to individual circumstances or is it a strict rule? 

Thanks

retiredbanker1

Is the car on finance?

If it is expect to lose it.

If not you can only ask - perhaps discuss your case with an insolvency charity FIRST to see what their take is on this.

fatbelly

I'm assuming your car is owned outright, you live in England/Wales and you have valued it on Parker's Guide

If you make out a case for the car being essential and public transport being unavailable then you may be allowed to keep a car worth up to 2k. If it is possible to sell your car then that is what will happen as they have to maximise the sale of your assets for the benefit of your creditors.

You could consider an IVA, which would protect your car.

You could wait till the value drops before Bankruptcy

You could consider a Debt Management Plan

You could downgrade your car which, subject to you meeting other criteria, mght open up the possibility of a DRO

If you want us to offer guidance, maybe post a statement of affairs on the debt-free wannabe board

https://www.lemonfool.co.uk/financecalculators/soa.php

luvchocolate

My car was borderline..as a relief manager covering a large city I plead my case that I needed my car to be reliable. 
The examiner for the OR did say reliability is of no concern to them..just the value 

JCS1

retiredbanker1 said:

Is the car on finance?

If it is expect to lose it.

If not you can only ask - perhaps discuss your case with an insolvency charity FIRST to see what their take is on this.

Not quite true.

Depends on the type of finance and if any equity in the vehicle.

LightFlare

fatbelly said:

I'm assuming your car is owned outright, you live in England/Wales and you have valued it on Parker's Guide

If you make out a case for the car being essential and public transport being unavailable then you may be allowed to keep a car worth up to 2k. If it is possible to sell your car then that is what will happen as they have to maximise the sale of your assets for the benefit of your creditors.

You could consider an IVA, which would protect your car.

You could wait till the value drops before Bankruptcy

You could consider a Debt Management Plan

You could downgrade your car which, subject to you meeting other criteria, mght open up the possibility of a DRO

If you want us to offer guidance, maybe post a statement of affairs on the debt-free wannabe board

https://www.lemonfool.co.uk/financecalculators/soa.php

I would second this - especially given your financial history or being bankrupt in 2013 as well.

https://forums.moneysavingexpert.com/discussion/4684891/recently-discharged#latest

It sounds as if you have some spending habits that need to be identified and addressed 

Crazydennie

JCS1 said:

retiredbanker1 said:

Is the car on finance?

If it is expect to lose it.

If not you can only ask - perhaps discuss your case with an insolvency charity FIRST to see what their take is on this.

Not quite true.

Depends on the type of finance and if any equity in the vehicle.

I would agree with this as I was allowed to keep a car worth 15k on a hp contract with 19k outstanding