Car in bankruptcy

[Skippy]

I've been doing some research into bankruptcy online, and I'm now worried. I read that if you are allowed to keep a car it will be a maximum value of £2000. I've accepted that I probably won't be able to keep mine, but I also read that the OR might not let me keep a car at all unless I can prove that it's essential.

I'm worried that they will think it's not essential for me to have a car as I can get to work by bus, although it it not a direct route and would take me over an hour to do a journey that currently takes me 25 minutes. Also, my mum is elderly and although she does drive she won't come over to see me as she is a nervous driver. What does everyone think - I can't face not having a car of any sort.

Onwards and upwards!!!
View my blog at: http://skippy13.blogs.iva.co.uk/

[kezza]

Hi Skippy
would it not be worth swapping your car for a cheapr one? Is it valued at more than the allowed limit?

[coco]

Hi Skippy, I think there is a lot of conflicting advice regarding car's i have been told there is a good chance i will keep mine approx value 4500 left to pay on HP, mine will depend on the finance company. It would be essential for me to keep my car as this is our only transport to and from work which is not on any kind of bus route approx 20 miles aways. But i know there will be the possiblity that i will loose it, i think it is one of the things that no one could really say for sure as it will be down the to the OR.

51 payments to go
(I apologise for my keyboards poor spelling and grammar)
http://coco.blogs.iva.co.uk

[freelili]

Dont worry skippy, I must admit that this was a worry for me also, but my own circumstances would have been taken into account, so will yours. It would cost the OR money to take your car, I was told 2500-3000. Dont start scaring yourself. You will not be busing it to work.

LILY

[Skippy]

Thanks all. As long as I can have a car of some sort I don't mind - I struggle to get to work on time in a car, let alone on public transport!

Onwards and upwards!!!
View my blog at: http://skippy13.blogs.iva.co.uk/

[sagapal]

would it not be a good idea to " sell" it to someone close to you just in case?


Alan

[freelili]

Is it a good idea to 'sell' an asset to a family member/friend just before a BR, I wouldnt. The OR would suss this and I think it is best to be honest.

LILY

[MelanieGiles]

Skippy

Your car is safe so long as it is essential for transport to and from work and for normal domestic duties. If it is worth more than £3,500, then you may be required to sell it and buy a replacement.

Do remember that assets in a bankruptcy are only generally repatriated to creditors if they are in excess of £5,000. Therefore the Official Receiver will generally be disinterested about assets of lower value, providing you can put up a good case to justify why they should be retained.

Regards, Melanie Giles, Insolvency Practitioner for over 20 years.

For further details contact me at http://www.melaniegiles.com and view my IVA blog at: http://melaniegiles.blogs.iva.co.uk