considering bankruptcy help please

fiveyearplan

Did you say you're ringing CCCS tomorrow. I'm sure you will feel better once they put things into perspective for you.

fermi

Just to add, taib0 is a user of this forum and both them and their partner were taxi drivers when they went BR.

I believe the OR allowed them to keep at least one of the two taxis they had so that they could continue to earn a living.

The thread concerning the outcome of their interview with the OR is here:

http://forums.moneysavingexpert.com/showthread.html?t=567116

If it is your means of earning a living then they may well let you keep it.

fermi

Plus, from the OR's guidance manual.

http://www.insolvency.gov.uk/freedomofinformation/technical/TechnicalManual/Ch25-36/Chapter31/part2/part3/part_3.htm

31.2.21 Bankrupt claiming vehicle as exempt property

It the bankrupt's responsibility to satisfy the official receiver that a vehicle is exempt property, i.e. that it is necessary for his/her use personally in his/her employment, business or vocation, or is necessary to meet the basic domestic needs of the bankrupt and his/her family. In the case of a claim for exemption to meet domestic needs the official receiver must be satisfied that the motor vehicle is necessary to the extent that no practical alternative exists, to meet a genuine need and not merely a matter of convenience.If the use of a vehicle does not meet the test for necessity the vehicle is vested in the bankruptcy estate and the official receiver as trustee should instead pursue with the bankrupt the option to make a reasonable offer for the purchase of the vehicle (see paragraph 31.2.34).

The bankrupt's claim should be dealt with at the initial interview in either the narrative statement or in supplementary questions to the PIQ.

The bankrupt needs to be able to satisfy the official receiver that the vehicle is both necessary for his/her employment, business or vocation and is necessary personally to the bankrupt. This does not mean that the vehicle must be used exclusively by the bankrupt but it must be necessary to him/her not just to the other users.

Whether or not a vehicle is exempt property is in some cases a difficult question. In such circumstances, official receivers will need to use their discretion and consider each case according to its merits within the guidelines issued to official receivers.In all cases official receivers should apply the guidance strictly and rigorously. It is for the bankrupt to convince the official receiver that any motor vehicle is necessary within the exemptions. The value of the vehicle is not a determining factor.

31.2.22(a) Bankrupt claims he/she needs vehicle for work

When considering whether to exempt a motor vehicle under section 283(2)(a) theprincipal points to be considered are;

• whether the vehicle is used by the bankrupt in his/her employment, business or vocation,
• that the bankrupt could not reasonably travel to and from his/her place of employment without a vehicle, due to lack of alternative transport,
• that the bankrupt’s prospects of obtaining employment would diminish without use of the vehicle, even though the bankrupt may not be in employment at the date of the bankruptcy order. In such cases, the official receiver will need to decide whether there is a reasonable prospect of the bankrupt obtaining work,
• that a self employed bankrupt who does not have work at the date of the bankruptcy order may be able to retain a vehicle as an exempt asset if he/she can satisfy the official receiver that there is a reasonable prospect of him/her obtaining work, and
• that the bankrupt’s prospect of obtaining work would diminish even if a vehicle requires repair but will then be used to travel to work or to seek employment.

The bankrupt must satisfy the official receiver that a vehicle is necessary. If the bankrupt cannot do so, and the official receiver has reasonable grounds for believing that the vehicle is not exempt, he/she is entitled to treat the property as part of the estate and deal with it accordingly.

tracytaxi

yes thank you all, only problem my car is on hp only got it as explained on page one in november 2007. Even if OR let me keep I don't know what the finance company will say its in their agreement that bankruptcy teminates but they might make an exception, i will check out the links. Sorry to go on and on, my head not switching off, worked 10 hours today took £ 72 pound. Fuel £15, office rent £40 lovely.

fermi

Sorry, missed that bit.

All a HP company normally cares about is getting their monthly payments. Most seem happy to continue an agreement if you can reassure them they will still be paid.
The car would almost certainly be worth less than the outstanding finance, so the OR would have no interest in it.

I can understand why you are nervous about taking the leap though if it is such an important source of income. No wonder your head is spinning.

tracytaxi

phoning official reciever today and cccs and going to try to pop into court for info too. Does anyone know much about which is the best prepaid debit card?/
Do you think Barclays would let us keep our joint account, connect card no overdraft, no cheque guarantee card.
off to work now

fiveyearplan

I have the cash plus mastercard. It costs 4.95 per month and £0 per transaction. You can find detail on www.mycashplus.co.uk. There are other prepaid cards and some charge you per transaction. I top mine up at the post office and so far have found it very useful.

I wouldn't risk the Barclays account but what you can do is have your name taken off the account so your husband can keep it. I did this with our joint Barclay account. You simply take a letter signed by both of you into a branch and they can do it for you. I got wrong information from Barclays, they first of all told me to send off a letter but be firm in the branch, tell them you were told it had to be done in branch. It is also helpful if your husband goes with you so he can sign a new signature affidavit.

You could then either open a Barclays basic account for yourself or a coop account. I personally have the coop account because Barclays is one of my biggest creditors. I pay money and cheques into the post office for this account. The money (cash) is available immediately and cheques take about 4-5 working days to clear. It comes with an electron card which is accepted most places but not all.

fiveyearplan

Sorry TT, wrong information above. If it is your husband going BR first then have his name taken off account and he can open one of the new accounts mentioned above.

fiveyearplan

There are details on the first sticky at the top of the Bancruptcy forum called bank accounts for BRs. The only ones that accept BRs are coop and Barclays so don't even try any of the others.

tracytaxi

quick update took half day to try and sort things only to find cab shut. Phoned official reciever, and took some advice on my car said they could not say but would not want to stop me working and more or less down to finance company. Phoned pay plan and took hubbie off dmp, reduced monthly payment to them, by £40 per month will free up some more cash whilst I think what to do. But hubbie is going bankrupt. Phoning cccs next.Also checked iva not suitable for me.