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| T O P I C R E V I E W |
| Tina.69 |
Posted - 08 April 2010 : 21:16:15
I am currently bankrupt and was told my car was exempt from the bankruptcy. I have sold my car due to it costing to much to run but have now been told by my employer that I am going to receive a company car. Am I able to keep the money received from the sale of my car or do I have to pay it back to the offical receiver. Or can I keep the money if I need to buy a car in the future, if I find another job as I will have no car then.
Please advise
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| 8 L A T E S T R E P L I E S (Newest First) |
| Skippy |
Posted - 09 April 2010 : 16:53:31
I agree with Paul - if the car is exempt then I don't see how any money from a sale would be a windfall.
Personally, even if it meant paying more into an IPA I would rather have a company car - the benefits of not having to pay for the running of the car would far outweigh the downside to me!
View my blog at http://skippy13.blogs.bankruptcyhelp.org.uk/
Only when the last tree has died, the last river has been poisoned and the last fish has been caught will we realise that we cannot eat money.
32 IPA payments made, 4 to go - the end is in sight! |
| Housing |
Posted - 09 April 2010 : 16:14:26
Tina
There are a number of things to consider - I was working on the basis that you may not have included the running costs of your car as it was not clear to me if you included the running costs in your original SOA.
If you did, then, of course, what Paul says is worth thinking about, the company car will change your tax code and the allowances for tax, fuel etc will no longer be applicable - although you may still have to buy fuel that is not for business, but private mileage.
So yes, at one level it is a benefit and at another level it is an area that the OR is going to need to be aware of (on the assumption that you did declare something on your SOA).
I am still unclear as to whether the OR will treat it as a windfall - some differences of opinion here
All I would say is whatever the outcome, I wish you well and for academic reference, post back on the eventual outcome.
In the meantime, best regards, Richard
"There are no problems - only solutions" |
| Reviva UK |
Posted - 09 April 2010 : 14:38:42
If the car has been exempted it has been exempted and is yours to do with as you will. Sale and released funds are not viewed as a windfall.
You should consider that a company car will change your tax code and will cost money. In addition now that your personal car has gone your allowances for fuel, road tax, car insurance and maintenance will have gone. Therefore ther is a real liklihood that your income / expenditure will have changed ( you need to advise the OR of such ) and you may then be liable for an Income Payment Agreement from disposable income.
worth working it through before you make the decision.
Paul Johns
Bankruptcy Specialists
Reviva UK
www.revivauk.com
Real People ..... Real Debt Solutions |
| gettingoutofdebt |
Posted - 09 April 2010 : 13:38:15
My understanding is that a car is exempt only if the OR deems it necessary for work. In this case the car is no longer needed for work (as there will be a company car) so the car will no longer be exempt.
If someone is discharged and then sells their car they would be able to keep the funds but if they sell the car and are not discharged then the OR would have a claim on the funds.
In any case as your circumstances have changed you will need to inform the OR and they will let you know if you can keep the funds or not. You will also probably need to complete another I&E as you may not have to pay road tax, insurance, all of your fuel, etc. |
| Housing |
Posted - 09 April 2010 : 13:19:38
Dave,
That is an interesting point that you make - my point was, if the car is now gone and a windfall, in effect, has been received from the sale of an asset, then the OR should be entitled to the windfall?
I am not advocating that the OR should have the funds, simply following what may be in the mind of the investigating officer. Had Tina retained that car and if it was less than £2K, then if she needed the car for work then it could be retained. Now, she has been offered a car with her job and all the additional benefits that that brings... then maybe it is reasonable that the OR realises the funds? Just a point - interested in what others may say.
Richard
quote:
Originally posted by chester2005
i would disagree!!!!!!!!!
if the OR has agreed to exclude or exempt your car from BR then it is yours to do what you want with , if that means sell it and use the cash for something else so be it. He has no claim on the car or the proceeds of the sale of it.
the only thing to be aware of is that if you buy something else with the money the OR can then claim that as an after acquired asset.
if the money stays in the bank and is used for shopping etc. or even a holiday there should be no problem
Dave
Don't worry or know that worrying is as effective as trying to solve an algebra equation by chewing bubble gum.(Baz Lurhman)
RevivaUK and Paul Johns helped me through it all i can't recommend them enough!!
"There are no problems - only solutions" |
| chester2005 |
Posted - 09 April 2010 : 12:39:53
i would disagree!!!!!!!!!
if the OR has agreed to exclude or exempt your car from BR then it is yours to do what you want with , if that means sell it and use the cash for something else so be it. He has no claim on the car or the proceeds of the sale of it.
the only thing to be aware of is that if you buy something else with the money the OR can then claim that as an after acquired asset.
if the money stays in the bank and is used for shopping etc. or even a holiday there should be no problem
Dave
Don't worry or know that worrying is as effective as trying to solve an algebra equation by chewing bubble gum.(Baz Lurhman)
RevivaUK and Paul Johns helped me through it all i can't recommend them enough!! |
| Housing |
Posted - 09 April 2010 : 12:26:56
Tina
I agree with gettingoutofdebt.
I suspect that you will be much better off with a company car - no rioad fund, no insurance, some of your fuel paid for and above all no bills for running costs  So, even if you do have to repay the funds to the OR, you are in pocket in real terms.
Always look on the bright side of life!!
Richard
"There are no problems - only solutions" |
| gettingoutofdebt |
Posted - 09 April 2010 : 10:07:18
You will need to pay the money for the car to the OR. |
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