keeping it all above board!

[stuffed]

Hi everyone,
We are due to go BR next month, seem to have no other options!!
We have 2 cars, mine worth about £1,000.
My husbands car is worth £17,760 (Private poor condition) to £2,525 (private good condition).
The dealers price in Parkers guide is £2,700 approx.
We have been advised that the OR will not allow my Husband to keep his car and that we should sell it.
My Mother has offered to buy it from us and we could put the money towards a cheaper car for hubby and this months rent. I don't want to do anything that is dicey but I have a feeling that my Mum will gvie my husband the car back when the BR has ended.
Should we do this? If so will the OR accept it? What documentation do we need to ensure that this is all above board?
I know it sounds silly, but this car is very important to us. One of our Kid's spends some time each year in a wheelchair and we need my husbands car to transport him and his chair to school.

I am so grateful for all the advice I have received on this site and thanks in anticipation.

[MelanieGiles]

Assume you have mistyped the value of your husband's car?

Who has advised you that the OR will not allow your husband to keep his car? Personally I would wait until the bankruptcy order has been made and deal with this then.

[stuffed]

Hi Melanie,
Thanks for replying. I spoke to Paul on the phone and he said that they eould be unlikely to allow my husband the use of a car worth more than £1,500.
My son is not registered disabled so I am not sure the OR would be happy with us keeping both cars. I am looking for a job at the moment and the bus services here are useless.
I would need a car to get anywhere. My husband is a self employed translator and needs his car for that.

[stuffed]

Oops sorry, yes I mistyped it! it is £1,760 not 17 thousand

[MelanieGiles]

Sorry - I don't agree with Paul on this point. I assume that your husband works and therefore needs his car to get to and from work - especially as he is self-employed. Perhaps Paul can advise us why he feels such a low allowance would be made in your husband's case.

[ianmillington]

My take on this is that if your husband needs the car for work it will be an exempt asset. The OR however can claim it for the bankruptcy if it is of "excess value" but basically he would have to replace it with something which is more modest but fit for purpose and serviceable. It must be a reasonable replacement (defined in the Insolvency Act as being "reasonably adequate for meeting the needs met by the other property"). My view is that most ORs office would see the figure of £1760 as being below the de-minimus i.e it would not be worth the mither to them, although this may vary from office to office.

Based entirely on what you say it is currently your car that is at the greater risk. A vehicle is only exempt if it is needed for your job, although the OR might well take on board the argument you make about looking for a job, which you presumably won't be able to do without a car.

Ian

[chris.g]

We got to keep our car and it's valued at £2,500+. Providing the car is needed for employment I can't see a problem. They may not allow you to keep your car as your not working unless you get a job before you file for br....

[stuffed]

I will definatley have to get a job before BR then. I am looking at local part time jobs and have applied for several. Without a car it would be very difficult to attend interviews or commit to employment.
I would have very real problems getting to work without the car. I live in a one shop/postoffice and one pub village. The local bus service is rubbish and it would really limit my options of work.

[chris.g]

I suppose that the down side of village life.. Good luck with your job hunting, even if you don't get the one you want straight away, as long as you have a job that's the main thing.
xx

[ianmillington]

I would agree that if you want to wear a belt and braces (always a wise precaution) you would be well advised to get a job before filing the petition.

Ian

[Skippy]

I was under the impression that if you need a car to look for work this is one of the reasons the OR will exempt it.

Also, I was allowed to keep my car last year and it was worth 3-3.5k (although it needed some work done).

[ianmillington]

It depends upon interpretation Skippy. The law says "books tools vehicles...... as are necessary for use personally by him in his employment, business or vocation". If the OR's examiner is hard-core, strictly speaking getting to work is not strictly "for use in" although most ORs would take the softer approach and allow it in my opinion. Whether that extends to exclusion on the grounds that it will be needed if you get a job well, that's another step.

Let's look a bit at the practicality - we are talking about a car valued at £1000, so at first glance it seems hardly worthwhile the OR doing anything. However unless stuffed is working how will the Tax, insurance and petrol get paid for? It's unlikely that the OR will allow the cost of it to be taken into account in her husbands I&E. As a result, if stuffed is working she will likely as not keep the car but if not I don't think it can be guaranteed, and it's in those circumstances that mothers help might come in very handy if needed.

Ian

[chris.g]

If you remember I lost my job due to the time off I had soon after br. When I informed the OR she said she would claim the car as I didn't need it for employment. As my hubby is epileptic and can't drive, he relies on me to take him to and fro, he's a bricklayer so site locations varies. We only heard last week that we could keep the car, which was a relief. I must admit that the OR we have is a proper job's worth but there are a few of them about so it's not really worth taking the risk if employment can be found before br,
xx