My car

[Nicki]

Would this look bad with the OR??

My car is worth 4.5k and i owe £1200k on it if i sold it to pay finance off before Bankruptcy and bought a cheaper car and taxed it with the money left over would the OR see this as hiding assetts etc? or would i be better to see if he will allow my car in bankruptcy? What would happen if he allowed it and I then sold it and paid hp off then got a cheaper car would he take car off me then ??

sorry if this is muddled

[pippa]

Hi Nicki
To be honest its a little difficult to know exactly what the OR will do as it differs very much from region to region. Some people are only allowed to keep a car if absolutely needed e.g. not close to public transport even if you work.
But I can only speak from my experience and say that in my area you will be allowed 2k allowance for the car, mine was worth 2.5k so I was allowed to keep it as the costs for the OR to sell it would not leave anything for the estate once they had given me the 2k allowance back. However I did not have any finance owing so hopefully someone who has experience of that situation will be along soon to advise you.
Sorry not much help

When are you thinking of petitioning for BR? Good luck

Pippa

[MelanieGiles]

Hi Nicki

You car value is currently borderline, and I feel that it would be taken from you and sold. If the finance company are in agreement that you can sell it, I would try to do that and use the proceeds to buy a car of around £2,500. You can then keep the remainder of the money to hand over to the OR when your bankruptcy has been confirmed.

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

To have me propose an IVA for you, please visit:
http://www.melaniegiles.com/ivaEnquiry.asp

See customer feedback at:
http://www.iva.com/iva_companies/IVA_Advice_Bureau.asp

[Nicki]

I work shifts 6am -6 pm / 7am-7pm or 8am-8pm days and night shifts so have to have a vehicle to get to work I will loose my job if i can't get to work obviously and there is no bus @ 5 in the morning . would OR let me keep the car because a cheaper run around is more likely to break down than my current car.?

[MelanieGiles]

No - the OR takes a view that a car of approx £2,000 to £3,000 is more than adequate - as lots of people have similar valued cars and manage quite well. You will be allowed a sum for ongoing car maintenance, so do make sure that you keep saving this in a separate account.

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

To have me propose an IVA for you, please visit:
http://www.melaniegiles.com/ivaEnquiry.asp

See customer feedback at:
http://www.iva.com/iva_companies/IVA_Advice_Bureau.asp

[pm.e]

Hi,


Just wondering, couldnt the partner/spouse relative etc, buy the beneficial interest in the car, thus nmot force the sale of the car?

I assume the OR would only wish t osell the car if there is any financial benefit in doing so??

Same principles as Beneficial Interest in a home??

[Nicki]

ok will try and sell my car and pay off the finance before I go bankrupt... this will leave about £3300 do I get a car for £2000 or should I get one £3000 or do I go in the middle ?? not sure what to do ?

[Nicki]

hello Darren won't get a loan he has seen the state i get myself into and refuses to budge on credit he has one credit card and his car only and won't get any more credit... Both my parents are no longer with us and can't tell my brother that i am going bankrupt he would never speak to me again... i don't understand how this Benficial interest works anyway what is it ?

Hi,


Just wondering, couldnt the partner/spouse relative etc, buy the beneficial interest in the car, thus nmot force the sale of the car?

I assume the OR would only wish t osell the car if there is any financial benefit in doing so??

Same principles as Beneficial Interest in a home??

[MelanieGiles]

Nicky

I cna't really advise you there - as each OR's examiner will have a differing view on the day. The nearer the value to £3,000 the more chance you have of having it taken from you and needing to fight your corner.

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

To have me propose an IVA for you, please visit:
http://www.melaniegiles.com/ivaEnquiry.asp

See customer feedback at:
http://www.iva.com/iva_companies/IVA_Advice_Bureau.asp

[Nicki]

what is the Benficial interest thing how does that work would somebody need to buy the car for its actual value ? 4.5 k or do i sell it for what i owe ? £1200 ?

[pm.e]

Hi,

Get three valuations of the car,
Get the outstanding balance of the car

Take the average valuation of the car minus the outstanding balance, and you are left with your realisation value, ie. what cash you would get after selling it.

If this is little or low value, then this I think may help you.

In the event of Negative equity, you then transfer the Beneficial Interest to someone you know or trust for an amount.

I would ask a solicitor or IP about all of this for further help.

[pm.e]

Hi,

One extra footnote, its the word VALUE that is important.

A car can be valued at £3000 but not actually worth the £3000 if you know what I mean?

[Nicki]

pm.e
car valued at x 2 garages £4200k and £3900k
just phoned finance company they say 8 months left with £1656.00 to pay .

so average about 4k- balance £1656.91 = £2344 does someone need to lend me this amount ?

[Nicki]

Hi Pippa

Not till next month when I have been paid so I can pay the £485

Hi Nicki
To be honest its a little difficult to know exactly what the OR will do as it differs very much from region to region. Some people are only allowed to keep a car if absolutely needed e.g. not close to public transport even if you work.
But I can only speak from my experience and say that in my area you will be allowed 2k allowance for the car, mine was worth 2.5k so I was allowed to keep it as the costs for the OR to sell it would not leave anything for the estate once they had given me the 2k allowance back. However I did not have any finance owing so hopefully someone who has experience of that situation will be along soon to advise you.
Sorry not much help

When are you thinking of petitioning for BR? Good luck

Pippa

[pippa]

Nicki valule the car with parkers on line, that is what the majority of OR's use I belive, also note I wasnt allowed a car maitainance allowance in my IE so again that differs from OR to OR.

Pippa