Car Help

Bluecar2 · 18 July 2019 at 6:59PM

Sorry for the long post but i am looking for some advice regarding cars, Due to the complete incompetency of the HMRC i am still waiting for my bancruptcy to go through having been postponed 3 times already,
Originally we had a car on finance with 5 payments left totaling £1800 at the start of Feb, We were due to have my bancruptcy done on Monday the 18th feb and knowing that we are only allowed a vehicle with a value of £1000 we brought a car for £900 on the 16th feb as there was a clause in the finance saying they can reposses if bancrupt, having gone out and brought the car on our return from the garage we had recieved a lettter saying that Hmrc had requested a postponement, Having seeked advice we decided to stop paying the finance as it was deemed just throwing money away and we stopped using the car and had it sorned.
Moving on to now, the cheap car we brought broke down last week and i have been qouted £1150 to repair so we taxed the old car and re insured it as i have to get to work which is a 30 mile round trip everyday, and then out of the blue today the finance company and said if we wanted they would accept a final payment to settle the account in full of £800, Which is not a problem as my children have offered to pay it as they know i need to get to work and to visit my father weekly,
Is this ok?
We buy any car value it at £2500 and parkers value it at £3800 which is a huge difference, Againg my boys have offered to pay the exceeded £1000 within reason,
How will they value the car when the bancruptcy does go through? and who is responable for the valuation
If the total is to much for the boys to pay ,Who sells the car do i and pass the money on or do you just hand it over to them and its there responability and how do you agree on the value
If it is sold will they allow me a £1000 to pay to get the old banger i brought repaired?

Minkym00 · 19 July 2019 at 4:57PM

The OR will use Parker’s to value it. If your sons can arrange to make the payment you suggested then the car will be an asset in your bankruptcy. The likelihood is that the OR will instruct their agents to sell it to realise the asset. What happens is that the agent collects the car and transfers £1000 to you to buy a replacement.

Minkym00 · 19 July 2019 at 5:00PM

They will also take the old car too, and most likely if it’s not working they’ll only get scrap value for it. You may want to consider your sons paying to repair this one as 1) you’ll be able to keep it and 2) it will logistically be easier than to have to find a new one.

sourcrates · 19 July 2019 at 5:06PM

From the "Beat my debt" website :

Once you are bankrupt your circumstances will be reviewed by the Official Receiver (OR). They will decide whether they will allow you to keep your car and maintain the payments. This will depend on a number of things.

Firstly they will consider whether you have a valid reason for keeping the car. Generally speaking it will be OK if you need it to get to work, for family commitments or have a specific medical requirement.

Secondly they consider the value of the car. They will calculate this by taking the current second hand value and deducting the balance of the outstanding finance. There should not be a problem as long as the value less outstanding finance is £1000 or less.

Lastly the OR will look at the monthly payment. As long as it is reasonable they should allow you to include it in your living expenses budget. As a rule of thumb a monthly payment of less than £200 should be allowed.

Bluecar2 · 21 July 2019 at 6:16PM

Thanks for the replies, I guess we will just fix up the broken down car and let the finance company reposses the car on finance

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