Bankruptcy questions

Sam2022

I cant see me being able to work again, which is not something that delights me, almost each week they are finding diffeeent bits of me going wrong!  
It isn't easy living a life on UC despite what some people think.  I'm lucky I get extra for not being able to work and my PIP on top.  I dont drink, don't smoke and am still skint before the end of the month.  Having said that I am a lot better off than a lot of people out there and at least know my money is guaranteed come what may.  I would still swap everything for my health and go to work everyday if I could.

The latest valuation on the car is £10k from Webuyanycar.  I can only have 6k in the bank under UC rules, so will have to account for 4k with them.  I'm pretty sure that doable and I will just filter the other bit by bit into the biscuit tin as you said.  I will feel guilty for doing it, as I've always been taught to pay my debts but it does make sense.

fatbelly

And the good ness is if WBAC say it's worth 10k, it is probably worth more.

What does

https://www.parkers.co.uk/car-valuation/

Say?

Sam2022

Parkers £9350 - £10000 dealer price private sale was less.  However it was based on a standard mileage of 70000.  Mine has only done 16800 and has full svc history.

Sam2022

Also updated WBAC and they are now saying £11055 valid for 4 days!!

stu12345_2

car wow or motorway ( both excellent companies) offered £2000 more than we buy any car when I sold mines.£12000 Vs £10000
they never even knocked anything off when they came to collect the car 
wbac knocked £250 PER wheel cos 
of small marks on alloys, ( horrible  company to deal with)but carwow or motorway didn't.they knew about it and still paid £12000

make sure the cheap car you then buy is justified, for receiver, eg no public transport near you or times to suit.

I would make super sure I never go above £6000 in savings,  for the UC rules( in bank)the biscuit tin would be sitting pretty.

BUT you want almost nothing in bank in bankruptcy, you want it spent beforehand,( start withdrawing  cash and also buy things  for home,car, get receipts)otherwise it will be taken from you by the receiver , your bank account will be frozen and receiver use what's in it for creditors 

I've been in the dole before and when they ask about savings etc, I said £1 in bank, where I did have £1, and gave bank statements,but I had about say £400 at home in cash.

decare what you have where a paper trail shows. the rest , do what you want, keep it , wallet or biscuit tin 

Sam2022

I just need to get the timing of everything right.  I am hoping to have breathing space through stepchange around middle of May.
Ideally I wanted to get rid of the car just after that as I could do with it on 13th May.
As long as I sell it before submitting the bankruptcy application will that be OK?
Obviously I would start buying what we need and filtering cash out before the breathing space ends.

stu12345_2

breathing space is not needed imo. just start the ball rolling by selling your car, getting another one, start buying things, withdraw cash, keep receipts, then  do your bankruptcy, fill in the forms, pay the fee.

step change don't fill in the forms, you do all that 

https://www.stepchange.org/debt-info/how-to-go-bankrupt.aspx

and 
https://www.stepchange.org/debt-info/bankruptcy-costs-and-fees.aspx
in that time creditors cant do much to you. if anything.

eg creditors haven't given you ccjs that you haven't paid from a court, they aren't partitioning for your bankruptcy 

Sam2022

How do I account for the cash withdrawals from the bank?  Won't the OR want to know why there are so many withdrawals and what I've done with the money?

fatbelly

So don't rush into bankruptcy. And forget about breathing space. Does it really matter if you don-t go bankrupt for a bit? Even 6 or 12 months?

You have a lot to sort out before you are ready.

marcia_

Sam2022 said:

I cant see me being able to work again, which is not something that delights me, almost each week they are finding diffeeent bits of me going wrong!  
It isn't easy living a life on UC despite what some people think.  I'm lucky I get extra for not being able to work and my PIP on top.  I dont drink, don't smoke and am still skint before the end of the month.  Having said that I am a lot better off than a lot of people out there and at least know my money is guaranteed come what may.  I would still swap everything for my health and go to work everyday if I could.

The latest valuation on the car is £10k from Webuyanycar.  I can only have 6k in the bank under UC rules, so will have to account for 4k with them.  I'm pretty sure that doable and I will just filter the other bit by bit into the biscuit tin as you said.  I will feel guilty for doing it, as I've always been taught to pay my debts but it does make sense.

 Under UC rules its what money you have at the assessment period. So if the money goes in £6k+ and you spend most of it on new items you mention straight away you will be ok.