SOA help

RAS

If you choose bankruptcy, you'll need to justify having a car. Which may well be possible if the public transport cost of getting you all to school and work exceeds the cost of running a car. Doesn't mean that you have to give up the car. And your mental health would probably be a reason for some leniency.

@fatbelly could confirm if the car allowance in BR is still £1500-2k?

Option 2 in fatbelly's reply might well be an option. Sell the car, buy something under £4k and a DRO might be an option.

You might have to then use some of the excess to pay down enough debt to get under the £50k limit, being careful to treat your creditors equitably. You can retain up to £2k in cash anyway.

Justme4

fatbelly said:

That was true. I think I received notification at work that they were bringing it into line.

Yes, June last year

https://www.gov.uk/guidance/technical-guidance-for-official-receivers/updates

You are allowed to get two independent reliable estimates of car value if Parkers doesn't work but if you are genuinely above that then I guess your options are

1. Carry on until depreciation drops the value below 4k. Though in your case your debts will probably go above 50k unless you can get them down with affordability complaints or something
2. Sell, and buy something cheaper. You can carry cash/other assets up to 2k in a DRO
3. Just go for bankruptcy and let the chips fall where they may. I don't think I recommend this option.

I haven't been following the whole thread and there is a lot to read. But I can see that you are getting good advice and help.

Thank you. Can I ask why you don’t think you would recommend BR… I am trying to avoid it if I’m honest and the dro would be perfect .. I think I’ll see what CAB advise regarding the car.. I’m praying I can do the dro… if I lose the car it is what it is and to be honest I’ll take that on the chin if it means I can sleep and night and get a fresh start … away from the vicious cycle I seem to be trapped in 

JadedAngel88

I don't want to add to your stress/worry but you really do need contents insurance. Usually it forms part of your tenancy agreement, I know it does mine, doesn't have to be expensive either. I got mine for £52 for this year with Tesco. 

Probably better to get it before the dro/bankruptcy if you choose that route. 

fatbelly

It's not that I don't recommend bankruptcy. But if you can get a DRO, they are less of a problem, and free

I just meant not to rush into bankruptcy. It is very quick to get into but very difficult to get out of

ManyWays

The published car rules in bankruptcy are here https://www.gov.uk/government/publications/guide-to-bankruptcy/guide-to-bankruptcy#what-happens-to-your-assets

My understanding is that your car will not be sold if it is under 4k, which is in line with DROs, but if it is, you will not get more than 3250 back to buy another one; this is to cover the ORs cost of repossessing and selling.

The  lendable debt is massive, winning an affordability complaint about that now could reduce the total debts to well under the DRO limit for when the car value drops.  

Justme4

ManyWays said:

The published car rules in bankruptcy are here https://www.gov.uk/government/publications/guide-to-bankruptcy/guide-to-bankruptcy#what-happens-to-your-assets

My understanding is that your car will not be sold if it is under 4k, which is in line with DROs, but if it is, you will not get more than 3250 back to buy another one; this is to cover the ORs cost of repossessing and selling.

The  lendable debt is massive, winning an affordability complaint about that now could reduce the total debts to well under the DRO limit for when the car value drops.  

Ok I think I’m getting me head round this.. what if I sold it for the money it’s worth and the receiver still got anything over including 2k assets im allowed? That would save them any hassle? 

Well I was actually wondering if that is a possibility with the lendable loan.. if I could free my self of that.. I could potentially with really tightening my belt keep powering through .. my head was not in the best place when I got it and I certainly wasn’t thinking logically or straight it seems … but it’s done. 

Do you know or read of anyone who has managed to win a case like this of this size loan? 

Again even getting the interest scrapped on it would make a huge difference to it also? 

Justme4

JadedAngel88 said:

I don't want to add to your stress/worry but you really do need contents insurance. Usually it forms part of your tenancy agreement, I know it does mine, doesn't have to be expensive either. I got mine for £52 for this year with Tesco. 

Probably better to get it before the dro/bankruptcy if you choose that route. 

Yes your so right I did have this and when it came to renewal I just didn’t get round to doing it, so that’s another little thing I must sort out

kimwp

I haven't read everything fully, but if your friend has a garage, could they help you sell your car and get a reliable one for under 4k? Then you qualify for the DRO and have some spare for kids clothes and shoes, school trips etc.

I agree with a previous poster though, you need to look at what you need to put aside for essentials and then only do fun stuff like meals out of there is enough money for that. You can take a packed lunch and bat and ball to the park and the kids don't need to be bought souvenirs every time you go out. I know it could seem miserly, but you need to live the life you can afford - there's plenty of ways to have fun cheaply.

I will say, I do think you are living life on hard mode - four kids, not much support and handling two addictions so remember to give yourself a pat on the back every now and then and remember you are doing ok.

Justme4

RAS said:

If you choose bankruptcy, you'll need to justify having a car. Which may well be possible if the public transport cost of getting you all to school and work exceeds the cost of running a car. Doesn't mean that you have to give up the car. And your mental health would probably be a reason for some leniency.

@fatbelly could confirm if the car allowance in BR is still £1500-2k?

Option 2 in fatbelly's reply might well be an option. Sell the car, buy something under £4k and a DRO might be an option.

You might have to then use some of the excess to pay down enough debt to get under the £50k limit, being careful to treat your creditors equitably. You can retain up to £2k in cash anyway.

Thank you again for your time in replying.. 

im ok with doing that with the car as long as I don’t get into trouble for doing that… I’m hoping with missing payments this month doesn’t throw me over the 50k … 

is it possible for CAB to get interest squashed on the loan .. if so that would definitely bring me well below.. 

I just can’t wait for my proper full appointment next week and see what they come back with … the stress is awful 

RAS

I tried to find links to the people on MSE who've had affordability claims accepted, although it's often a longer process. Hopefully someone else can link for you.

Companies get time to make an initial decision before you can contact the Financial Ombudsman. There's a specific page on irresponsible lending on the StepChange website.
 
I've not seen statistics but based just on my recollection I'd say half or more of the successful claims people have reported have been on appeal to the FOS.