using car cash for letting funds??

[chris.g]

Hiya everyone, some good news for me and my family. Found a house and our pending bankruptcy didn't put the landlord off, he'd almost been through it himself so was quite understanding and he doesn't mind our pets either, double bonus!!![:D]
Now the question.... I've sold my car-see other post-and will have cash spare. Now I had planned on giving it to the OR but of course, now need the bond and first months rent on the house aswell as moving expenses. Would it be feasible and allowable to use some of the money for this? If we were to use the money and the OR didn't allow the use, what is the worst that they could do to us? [V]Heard of restrictions they can impose but what do they actually mean and how would they effect us?

Learning as I go along and getting wiser all the time!!!

[Adam Davies]

Chris
I presume that you will stop paying your mortgage now so why not use that money to pay for the deposit etc,how soon are you thinking of moving out ?
You really need to have that money for the OR so could you purchase a slightly cheaper car,leaving yourself enough money to move ?

Andy Davie
IVA.co.uk Spokesperson

About me:
http://www.iva.co.uk/andy_davie_profile.asp

IVA Helpline: 0800 197 4838
http://www.iva.co.uk/iva_helpline.asp

[MelanieGiles]

Chris

Personally I would wait until the bankruptcy and ask the OR's permission for this, and I feel that the answer might be a negative one.

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

[chris.g]

Hiya, the landlord wants us to take up the tenancy ASAP and I don't want to miss the opportunity. The only way we could sell the car was to trade it in and the car we got was one of the cheapest they had in the garage. I'm afraid it's a strike while the iron's hot situation. What could the OR do if we did use the money?

Learning as I go along and getting wiser all the time!!!

[MelanieGiles]

Ultimately suspend your discharge.

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

[wen]

I have a question about car/bankruptcy also.

I currently have car on HP, which we would obviously lose in the BR.

This is the only car we have. We have the opportunity to buy a car for £700, (it is worth about £2,000), but it has some damage on the boot, which I need to find out what it would cost to fix first anyway.

Are we allowed to buy this car, shortly before BR, assuming that this will be our only car going forward, and if it is roadworthy, are we allowed to spend extra on fixing the boot?

[MelanieGiles]

Wen

There are no real rules as to what you can and cannot do prior to a bankruptcy, only penalties afterwards if you are deemed to have been reckless.

It is not certain that you would lose your HP car under bankruptcy proceedings. Is there any equity in it at present, and have you spoken to the HP company to see if they will terminate the agreement when you are bankrupt. Most ORs will allow reasonable HP payments as part of post-bankruptcy expenditure.

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

[wen]

Hi Melanie,

As far as I know there is very little equity in the car, and the balance is about £5,500 on it. We pay £192/month, for 36 months and then a one off payment at the end, or give the car back. The 36 months is up come October 2008, and we will then owe £3,400 to keep the car. Obviously paying this would not be an option, so we'd have to give the car back anyway, so it seems a bit pointless to keep paying the £192 for another 11 months, just to give it back next October?

[wen]

And no we haven't spoken to the HP company (Peugeot Financial Services) yet, as we were worried they may take some sort of action if I told them we were going bankrupt, as this is currently our only vehicle.

[MelanieGiles]

You may be able to refinance the balloon payment in October 2008 - it is worth a try to find out.

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

[wen]

Would refinancing the £3,500 balloon payment not break a bankruptcy rule, and would the OR then be looking to take the car off us anyway, as it is worth more than £2,000 ?

[MelanieGiles]

All points for discussion with the OR at the appropriate time, as you will be very close to your discharge by then.

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

[k24civic]

Melanie, I am currently in a IVA. My wife has decided to sell her car and we can share just 1 car. Do i need to inform the IP about this?

[Adam Davies]

Hi
If your wife is not in an IVA then there is no need to inform your IP.
When your annual review comes around you will have to fill in a new income and expenditure and reflect any changes in your expenditure.
Regards

Andy Davie
IVA.co.uk Spokesperson

About me:
http://www.iva.co.uk/andy_davie_profile.asp

IVA Helpline: 0800 197 4838
http://www.iva.co.uk/iva_helpline.asp

[chris.g]

So getting back to the original question. If I used some of the money to secure the new house they could lengthen the time before they discharge us. Is that really that bad? I may be being naive but it seems a risk worth taking as it does secure our family having a home without unneccessary distress to our kids-ie having to rehome our pets. Has anyone done this and had the OR suspend their discharge?

Learning as I go along and getting wiser all the time!!!