Car not exempt??

927 · 17 July 2018 at 1:15AM

I suspect my car will not be considered exempt. I use it to drive my 4 year old to nursery and to collect when he’s at my ex’s home.

IF it isn’t classed as exempt but a third party purchases it will I be allowed to use it or be registered keeper. If yes wouldn’t the OR know some of my budget will be spent on fuel?

If no will I be given public transport costs?

Or I can sell to third party now and use money to pay BR fees and gas and electric bill (it’s worth £840) and then still use while I discharged. Do I have to notify the OR if I use a car while I discharged?

silvercar · 17 July 2018 at 7:54AM

IF it isn!!!8217;t classed as exempt but a third party purchases it will I be allowed to use it or be registered keeper. If yes wouldn!!!8217;t the OR know some of my budget will be spent on fuel?

Yes, yes and yes.

(You would put in your budget that you will be spending on fuel.)

Or I can sell to third party now....

If you do this you need to show market value for the car. You can't dispose of an asset just before bankruptcy at below value.

fatbelly · 17 July 2018 at 10:32AM

How much is the car worth? Check Parkers Guide, Poor Condition

927 · 17 July 2018 at 10:47AM

£840 on Parker’s poor condition.

Third party would be buying it so I could pay BR fees but still have use of it. I’d obviously sell for market value (or just over).

Would OR have an issue with me still using the car to take child to nursery - understand it isn’t a ‘need’ as it isn’t school until next September (2019).

Clouds88 · 17 July 2018 at 1:19PM

No one can tell you the right answer no matter how many times you ask, you!!!8217;ll just have to do it and go with what he says. If they won!!!8217;t theyll need to give you a !!!8216;good!!!8217; amount for public transport so I wouldn!!!8217;t worry.

Press send! Let us know how you get on.

PaulL2 · 17 July 2018 at 10:46PM

Legally you can 'sell' the car to the third party (i.e. someone you know) and still be registered keeper. Owner and keeper are not the same thing. If the OR asks, send them a handwritten receipt and have evidence of where the money went (on good wholesome things like bankruptcy fee etc).

To be honest, £840 isn't going to get anywhere near even the OR's fees - which run into the thousands - let alone provide your creditors with any money, so I doubt they'll be bothered either way. Although if you have other assets or an income maybe they will sniff around more.

srg0916 · 18 July 2018 at 7:30AM

Why do you think your car won't be classed as exempt? If your using the car to transport your child to childcare then without the car you'll have to use public transport to get your child to and from childcare I'd think that this would be considered ok with the OR. I'd be suprrised otherwise. If the car is worth less than £1000 then the OR usually has no interest in the car as if you have a car worth more but they believe you need a car for everyday life then they would sell the car and give you £1000 to spend on a cheaper car.

System · 18 July 2018 at 1:06PM

Sub £1000 retail value they're usually exempt as the return on selling it at auction doesn't cover the costs involved in doing so.

If your using the car to transport your child to childcare then without the car you'll have to use public transport to get your child to and from childcare I'd think that this would be considered ok with the OR.

You think wrongly. The OR takes into account the value of the car. A £1000 car can do that job as equally well as a £10,000 car can and lots of people use their car to take a child to childcare that is well within reasonable walking distance.

927 · 18 July 2018 at 6:22PM

I’ve been advised (on here) that as I’m not working my child doesn’t have to go to nursery (7 miles away, no buses) so I don’t need a vehicle. I did see citizens advice bureau yesterday and the debt advisor said if my vehicle is under £1000 it would be highly likely to be exempt and I wouldn’t need to prove a need for it. More confused now!

fatbelly · 18 July 2018 at 7:45PM

927 wrote: »

I’ve been advised (on here) that as I’m not working my child doesn’t have to go to nursery (7 miles away, no buses) so I don’t need a vehicle. I did see citizens advice bureau yesterday and the debt advisor said if my vehicle is under £1000 it would be highly likely to be exempt and I wouldn’t need to prove a need for it. More confused now!

The truth is that at that car value it's not an exact science. Start compiling a list of reasons you need the car and make a pitch for it being exempt when you talk to the OR.

If not exempt you may be allowed to buy it back for a nominal sum.

I did have one client who was allowed to buy his car back from the OR for £5

927 · 18 July 2018 at 8:23PM

Thanks fatbelly, my reasons are:
Drive child to nursery (reluctant to change as son settled and happy and does not react to change well)
When looking for work not having a car would hinder this
Ex requires me to share travel to his (could catch train which would be 3.5hrs each way).

That’s it.
I live in a rural town. There are buses. So arguably I could catch them but not to nursery.

How would I run the car if those costs were put into an ipa? Does OR allow me to insure and pay for fuel for a car that they’ve not classed as exempt? Current calculations leave me with £7.58 surplus a month.

Car not exempt??

Comments

Categories

Get our FREE Weekly email full of deals & guides - and it’s spam-free