Advice needed
settingsun75
Posts: 1 Newbie
in IVA & DRO
Hi,
If someone could give me advice I'd really really appreciate it.
So, I'm sinking. I have about £10000 in debt, paying for a 2 bed property for myself and my daughter on just my salary.
Back along I contacted a debt advice service who told me either bankruptcy or a DRO was my best options. My preference was a DRO but I am the registered keeper of a car that is worth about £1750, I had gifted the car to my ex as collateral against what I owe her. She has allowed me full usage of the car as I wouldn't be able to work without it and thus have remained the registered keeper. However, obviously there is no paperwork to sate she owns the car. Financially I am at the end, no more left on my credit cards and now this month not enough money to even cover the bills so have to act.
How would this play out in applying for a DRO? any advice appreciated.
many thanks
If someone could give me advice I'd really really appreciate it.
So, I'm sinking. I have about £10000 in debt, paying for a 2 bed property for myself and my daughter on just my salary.
Back along I contacted a debt advice service who told me either bankruptcy or a DRO was my best options. My preference was a DRO but I am the registered keeper of a car that is worth about £1750, I had gifted the car to my ex as collateral against what I owe her. She has allowed me full usage of the car as I wouldn't be able to work without it and thus have remained the registered keeper. However, obviously there is no paperwork to sate she owns the car. Financially I am at the end, no more left on my credit cards and now this month not enough money to even cover the bills so have to act.
How would this play out in applying for a DRO? any advice appreciated.
many thanks
0
Comments
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Hi settingsun75
Welcome to the forum. A DRO can be a good way to get a fresh start but the car does throw up some issues. Has the car offset the debt? Or are you still expected to pay it back?
If you have given your ex partner the car in part payment of the debt, that could be seen as preferential treatment of a creditor. Or it could be a transaction at undervalue if you have given an asset away. This could stop you being able to have a DRO, and you'd find similar issues in bankruptcy.
Bear in mind that personal debts must be included in a DRO so this is something you're going to need to discuss with your ex partner. If you both agree the car is still yours you could wait for it to devalue below £1000, or consider selling it and buying a cheaper one. You need to be careful what you do with the profit from the sale so it's best to speak to one of the free debt advice agencies for advice. I wish you all the best with it.
Susie
@natdebtlineWe work as money advisers for National Debtline and have specific permission from MSE to post to try to help those in debt. Read more information on National Debtline in MSE's Debt Problems: What to do and where to get help guide. If you find you're struggling with debt and need further help try our online advice tool My Money Steps0 -
When you say 'paying for a 2 bed property' I assume that means renting.
Get a valuation of the car on Parkers Guide - use the Private poor figure.
You qualify for a DRO provided:- Must not be a homeowner,
- Debts less than £20,000,
- Can have a car worth up to £1000,
- No other assets of more than £1000,
- Must have £50 or less left at month end, after all essential payments have been made (not inc debt repayments),
- Cannot have had a DRO in last 6 years.
0 - Must not be a homeowner,
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