Child school and BR

Helen14 · 30 October 2017 at 6:02PM

Dear All,

I am considering going bankrupt and extremely worried for my car (worth 1500-1800 tops). I need it to go to work and to take my child to the school. Technically I could do all of that by bus, BUT it would take me 1 hour by bus to get to school (in fact 2 buses) and further 40-50 minutes to get to work (2 buses or 1 bus + 20min walk). The same quest in the evening. It takes 15 minutes by car to school and 15 minutes from school to work.
Could OR make me to change the child's school to more local one? I would not want to do that, as the local school is !!!!. And still it would be 40 minutes from school to get to my work by bus.
Would I be able to keep the car and keep the child in the school?:eek:

National_Debtline · 30 October 2017 at 7:39PM

Hi Helen14 and welcome to MSE,

The OR would not be able to tell you to change your child's school to one that is closer, so don't worry about that. He will be looking at the car and whether or not selling it will benefit the creditors, so it is difficult to say whether he will let you keep it, it really will depend on its value. Make sure you are checking the value on reputable websites.

The final decision will be at the discretion of the OR and if you can show it is essential they may be more inclined to let you keep it. If the OR agrees it is essential but is still interested in it as an asset (due to its value) he could ask you to downgrade the car to something cheaper, however, whether he will bother with this for a few hundred pounds is difficult to say. You could call the Insolvency Service to try and get a better idea of the outcome.

Laura
@natdebtline

Helen14 · 31 October 2017 at 5:39PM

Thank you very much for a reply. :j
One more question. Can OR ask my father to return the money I have been sending him occasionally as a support?
It was not repayment of the debts or anything; he was temporarily unemployed, also my mum has passed away, so I was contributing towards funeral costs and subsequently costs of headstone, etc.

Helen14 · 1 November 2017 at 11:38AM

And one more question.
What about Child Saving account (no access till she is 18), where I have been regularly putting some money since she was born. Can OR demand money back? Obviously not all of it, but just what has been transferred in the last 1 year?:(

Jono987 · 1 November 2017 at 12:01PM

Hey Helen. Just to hopefully ease some of your worries, my car was worth around the same, i put 2k on my application form. I was allowed to keep it because i needed it for work

So im sure with you needing it for work AND the school run you should be fine!

StopIt · 1 November 2017 at 12:08PM

Helen14 wrote: »

Thank you very much for a reply. :j
One more question. Can OR ask my father to return the money I have been sending him occasionally as a support?
It was not repayment of the debts or anything; he was temporarily unemployed, also my mum has passed away, so I was contributing towards funeral costs and subsequently costs of headstone, etc.

When was the last payment to your father, how much was it?

If you have been paying money to anyone in preference to your creditors, knowing that you're facing insolvency would be preferential payments and can be legally reclaimed by the OR.

Doesn't mean it will, but be prepared for that eventuality. Do not try to hide such payments too, because if they find "missing money", or transfers like this if you sent it directly via your bank, the OR will look on it in a much more harsh light than if you're open and honest.

You say you're looking at BR?

Could you post an SOA so people here can advice. Have you spoken to any debt charities like StepChange or the National Debtline for advice?

National_Debtline · 2 November 2017 at 1:43PM

Hello again Helen,

Helen14 wrote: »

And one more question.
What about Child Saving account (no access till she is 18), where I have been regularly putting some money since she was born. Can OR demand money back? Obviously not all of it, but just what has been transferred in the last 1 year?:(

This should be ok, however, it will really depend how much you have been putting into this savings account and for how long. If you have been making large saving deposits and not paying your debts, this could be looked at more closely. But if you have been putting a small, regular amount in since she was born it is unlikely to be an issue. The OR may advise you to stop these savings until you are discharged bankrupt, but it will all depend on the details.

Laura
@natdebtline

Helen14 · 2 November 2017 at 3:17PM

Thank you for replies.

I have not done SOA yet, will be looking into it shortly.

I have been saving for the child 50 pounds a month for some time now. I used to do 100-150 before that, but now it is tight, so it is 50 or some figure around that.

Child school and BR

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