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pbelter
Starting Member
United Kingdom
1 Posts |
 Posted - 16 September 2010 : 10:10:38
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I have been in an IVA for two years and now allowing this to fail to be able to go bankrupt, I am retired and only have my state pension and a disability pension. My wife is still working but has had to reduce her hours to be able to look after me due to my worsening ill health.Expenditure has gone up considerably as we live in a rural area and with visits to various hospitals and for physio etc has increased our petrol costs.
We met a "consultant" expert following a mail shot who wants £1200 to help and support us through this bankruptcy. We think we can do it ourselves. However we were confused in that he stated that my state (old age)pension and disability pension would be ignored in a bankruptcy.
Is this true? Also we have two cars both valued below £1500 which are necessary to enable me to access my medical appointments when my wife has the other car at work, would we be able to keep these? |
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Skippy
forum expert
United Kingdom
3290 Posts |
Posted - 16 September 2010 : 10:36:54
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Hi and welcome to the forum.
First of all, please don't pay the 'consultant' £1200. Companies that mail shot people on the insolvency register only want to make money from others' misfortune. If you feel that you need expert advice contact any of the professionals who post on here.
I think pensions are included as a source of income, but you will only recieve an IPA if you have £100 or more disposable income per month.
I would think that you have a good case to keep the cars as one is needed for work, and I presume you couldn't get to your medical appointments without a car?
View my blog at http://skippy13.blogs.iva.co.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.
Last IPA payment made on 28th June 2010 - it's over at last! |
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Bigal4787
forum expert
United Kingdom
641 Posts |
Posted - 22 September 2010 : 12:20:40
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pbelter
First as traceyjr stated, do not pay the consultant £1,200 for a process that can be done with a bit of help from other posters on this forum.
Your pensions would be taken into account to assess whether you could afford an IPA, however once your expenditure is taken into account, I cannot see based on what you've said that you would have sufficient for an IPA.
Regarding the cars, will yor wife be petitioning for bankruptcy as well? but this extract from the technical manual that the OR uses may help:
It the bankrupt's responsibility to satisfy the official receiver that a vehicle is exempt property, i.e. that it is necessary for his/her use personally in his/her employment, business or vocation, or is necessary to meet the basic domestic needs of the bankrupt and his/her family. In the case of a claim for exemption to meet domestic needs the official receiver must be satisfied that the motor vehicle is necessary to the extent that no practical alternative exists, to meet a genuine need and not merely a matter of convenience.If the use of a vehicle does not meet the test for necessity the vehicle is vested in the bankruptcy estate and the official receiver as trustee should instead pursue with the bankrupt the option to make a reasonable offer for the purchase of the vehicle (see paragraph 31.2.34).
Therefore, as shown above the main reason for exemption of a motor vehicle is in relation to employment, however a case may be made in relation to domestic needs, that no alternative exists, and it is a genuine need, not just a convenience.
Hope this helps, former insolvency examiner with the insolvency service up until 23rd July 2010(cost cutting)
Big Al |
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State Pensions
