Struggling

[Martha07]

Hi everyone.
I haven't posted on here in a while due to be being busy with my now 4 month old baby. Baically I was after some answers to a few questions I have. My husband and I are currently gathering together the info for our 2nd year review and we are seriously struggling. We are now starting to think that bancruptcy may be a better option for us. Due to our already low return in our IVA I doubt our creditors will take any less and I we already need to make up extra payments due to my maternity leave. My questions are,
1. Will our landlord be notified if we go bankrupt and will this affect our rent?
2. I have 1 year left to pay on my car HP, will I lose my car? It is the only car in the household.
3. Will our employers be told?
4. Is bancruptcy still advertised in the local papers?
I would be really grateful for any replies.

[Julie]

Hi Martha,

Sorry to hear you're struggling, hopefully your IP will be able to help the IVA continue.

However I'll try and answer your questions as best I can,

1 - I don't think so.
2 - As long as you can justify needing the car it should be okay. Check your HP agreement to see if you have to let them know.
3 - The OR won't tell your employers but agian check your terms and conditons of employment. It should state if you need to let employers know - usually if you work in the finance industry.
4 - I think so, although I didn't see hubbys in there!

Hope this helps xx

[Skippy]

I'm sorry to hear that Martha. I'll try and answer your questions:

1. As far as I am aware the OR is supposed to inform your landlord, although I have heard of occasions where they haven't.

2. It depends on whether you need the car, the value of the car and whether the HP company are happy for you to keep the car.

3. No but as Julie says you will need to check your contract to make sure you don't have to tell your employer.

4. It's at the discretion of the OR, but less personal BRs are advertised now.

Good luck xxx

[Sinking Fast]

Hi,

Sorry to hear about your struggles.

As others have mentioned the OR will write to your landlord to ensure your rent is up to date.

Regarding your car; if its worth is more than 2.5k then the OR will want to sell, and if you can prove to the OR that you need a vehicle then he will give you up to 2k back to purchase a vehicle.

BR is only advertised in the London Gazette these days, and very rare will you see it advertised in the local press - due to costs involved.

You have no duty to inform your employer, but their are exceptions such as if you work in the financial industry, solicitor, legal profession etc.....

Take some expert advice before you make your next move.

Gd luck.

Hi everyone.
I haven't posted on here in a while due to be being busy with my now 4 month old baby. Baically I was after some answers to a few questions I have. My husband and I are currently gathering together the info for our 2nd year review and we are seriously struggling. We are now starting to think that bancruptcy may be a better option for us. Due to our already low return in our IVA I doubt our creditors will take any less and I we already need to make up extra payments due to my maternity leave. My questions are,
1. Will our landlord be notified if we go bankrupt and will this affect our rent?
2. I have 1 year left to pay on my car HP, will I lose my car? It is the only car in the household.
3. Will our employers be told?
4. Is bancruptcy still advertised in the local papers?
I would be really grateful for any replies.

[Adam Davies]

Hi
Unless the car has a value in excess of 2k above that owed to the HP company the OR will not be interested in it. Therefore if you can finance it from your share of your disposable income and the finance company agree then you can keep your vehicle.
Your employers will not be informed, however your tax coding will change for the first financial year if you have to pay into your bankruptcy.
Regards

[Skippy]

If you are working your tax code will be changed to NT even if you don't have to pay into an Income Payment Agreement (IPA) as any tax that you pay that year will be paid straight to the OR.

[MelanieGiles]

Please be aware that the bankruptcy can still be advertised in the local press at the discretion of the Official Receiver, and I gather that some offices are still doing this.

[Julie]

I don't know if rules about values of car have changed or differ from area to area, but we had (have) a car on lease and the OR had no problem with us keeping it. Hubbys share of the repayments was included in his allowances no problem and the car is worth more than £2k.

[MelanieGiles]

A leased car is not taken into consideration as an asset - unless the agreement is lease purchase where you would eventually get ownership of the vehicle.

[Julie]

That explains it ...thanks Melanie xx