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Stressed by BR - TP
Starting Member
12 Posts |
 Posted - 05 April 2010 : 18:35:11
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I filed my petition for BR last Thurs but panic has set in! The OR won't be ringing me until Tues/Weds but I have a few questions. My situation: I'm a single mum of 2(aged 1 & 2 - ex partner left me when I was 5 months preg with my 2nd)! 1) Will I lose my car? I sought advice through the CAB & she said I wouldn't lose it as it's only worth about £1K but having looked on a few forums it looks like I will, as I don't work (ex Financial Advisor). I consider my car still essential though. I've had back problems since I was pregnant with my 1st child & take prescribed pain relief for this. I find it really difficult walking & picking up my children at the best of times but to have to negotiate public transport to go shopping with the girls fills me with dread. My twice weekly visits to the supermarket is the only excitement in my life, apart from visiting my mother, who lives a way from me & doesn't drive. I'm on a waiting list for counselling because I'm finding life so hard at the moment, now this is causing more stress, as I wouldn't have a clue how to arrange this without my car! 2) I'm on Income Support & Housing Benefit get most of my rent paid but the day I got back from court I received a letter from IS to say it's now going up. Now I don't know if it's because of my mental state but I don't see this as a positive. I spent days looking at my SOA & seeing how little money I had, wishing I had enough for more than everyday basics, now this is like a wish come true. I'm now going to be approximately £120 better off each month but I'm worried. Will the OR think I'm trying to pull a fast one, as the letter is dated before my BR, although it won't come into effect until 14th April 2010? Will the OR see this as disposable income & take this money to pay off my creditors? Will this extra 'income' affect my housing benefit? If it affects my housing benefit, who knows how much of the £120 I will actually have left to declare anyway. Please can you help?
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debtinfo
forum expert
2826 Posts |
Posted - 05 April 2010 : 18:49:38
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1) there are two distinct reasons for having a car exempted from the bankruptcy, one is for employment which is fairly cut and dried and is the most common one. The other is for basic domestic need which is less clear cut. Do you have a letter re your back from your doctor as this may help. Ypu have to show that it is essential rather than just a convenience. If it is not exempt you could offer to buy the car back from the OR for a reduced amount.
2) If your only income is from benefits the OR will not require you to make any payments towards your bankruptcy |
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Daniel Griffiths
Junior Member
United Kingdom
268 Posts |
Posted - 05 April 2010 : 18:49:39
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Hello
Please try and calm down and stop worrying about things that have not happened yet, first the Official Receiver will not be taking any monies off you as you are on benefits, it does not matter even if you can afford something you dont pay unless you are working.
Second about the car I am afraid I cannot give you comfort there the rule is you keep a car of reasonable value if it can be classed as a tool which you need for work, and you do not work, you will just have to wait to see what the OR says about it. Good Luck, |
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Stressed by BR - TP
Starting Member
12 Posts |
Posted - 05 April 2010 : 19:02:00
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Thanks for your quick replies guys.
Deftinfo: I'm sure the doctor could put something in writing about my back or he wouldn't be able to justify handing out drugs willy nilly. So fingers crossed on that one. PS your mentioned the OR might let me buy my car back for a reduced amount - how would that work?
Daniel Griffiths: Regarding that fact I'm on benefits. All my income is benefit related ie income support, housing benefit, child tax credit and child benefit but my ex does pay me £204 per month child maintenance, would this money be taken into account. |
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debtinfo
forum expert
2826 Posts |
Posted - 05 April 2010 : 19:11:05
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| When you go bankrupt the car falls into the bankruptcy estate, The OR doesent want the car, what they want is the money. To do this they have to sell it to someone and that someone can be you or a family member. If the OR was to sell it to an unconected party they would have to pay an agent to collect it, to store it and to put it in an auction. All this costs money so for instance if the car was worth £1,000 and you offered the OR £500 they would probably accept the offer as it cuts down on their expenses and hassle. Most OR's use parkers to value the car the private poor figure |
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Stressed by BR - TP
Starting Member
12 Posts |
Posted - 05 April 2010 : 19:12:19
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| Daniel Griffiths: If it does turn out to be the case that OR doesn't take any income from me as I'm on benefits, does that mean I'll be able to keep my mobile phone contract and internet access? As getting rid of these things to increase my surplus income wouldn't make any difference, if there's no money to pay back, if that makes sense. |
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Daniel Griffiths
Junior Member
United Kingdom
268 Posts |
Posted - 05 April 2010 : 19:13:39
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| It would only be taken into account if you were working, ie if the benefits, child support added to your earnings gave you more than you needed to live on. |
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Stressed by BR - TP
Starting Member
12 Posts |
Posted - 05 April 2010 : 19:14:10
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| Debtinfo: Thanks for that information regarding the car. Just a shame I don't know anyone with money - lol. |
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Stressed by BR - TP
Starting Member
12 Posts |
Posted - 05 April 2010 : 19:21:07
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| Debtinfo: Just looked on a site www.whatsmycarworth.co.uk and it's valued it at between £645 - £905. That's even lower than what I originally thought, which might make finding someone to buy it back for me a bit easier. |
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Daniel Griffiths
Junior Member
United Kingdom
268 Posts |
Posted - 05 April 2010 : 19:24:31
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| You may find the mobile phone contract could be terminated by the provider. |
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memphisd56
Junior Member
United Kingdom
112 Posts |
Posted - 06 April 2010 : 13:28:27
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Hi, I was asked why i needed my car (value only £500!), the reason i gave was hospital visits. The O.R then asked if i needed it due to distance to the hospital, or medical condition....the correct answer was `medical condition`!.....Phew!!!.
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Stressed by BR - TP
Starting Member
12 Posts |
Posted - 06 April 2010 : 13:32:32
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| Thank you Memphis56!!! Thank god for this forum!! |
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Stressed by BR - TP
Starting Member
12 Posts |
Posted - 06 April 2010 : 13:36:38
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| Can anyone tell me, am I actually Bankrupt? My friends have asked me and I've had to say I really don't know, but probably. My appointment at the court was last Thurs, I've given my money and the petition was to be looked at by the judge to decide. I was told I'd get a call from the OR either today or tomorrow but will anyone else ring me to let me know the petition has been accepted or do I just presume it has? |
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Jane.l
Average Member
511 Posts |
Posted - 06 April 2010 : 13:42:44
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| you should have received the stamped bankruptcy order when you left the court, were you not given this? |
Edited by - Jane.l on 06 April 2010 13:43:09 |
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Stressed by BR - TP
Starting Member
12 Posts |
Posted - 06 April 2010 : 13:45:01
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| I was told this would be posted out (not received today). I've also got a receipt for my money and a ref number |
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Jane.l
Average Member
511 Posts |
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Topic |
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BR single mum on benefits - will I lose my car?
