We went bankrupt a month ago following the failure of our business. At the time we asked if we could sell our car, which is expensive to run, and buy a smaller a smaller cheaper one, on the understanding that any surplus cash would go into our bankruptcy estate. We were told not to worry about it, we could discuss it at our meeting with the OR. The meeting is scheduled for early May. Today out of the blue the trustee phoned up and said that he was sending someone round to collect the car. (In fact it has just gone). We explained that we need the car to get to work and asked if we could go ahead and sell the car now. The trustee was adamant that we could not keep the car nor sell it ourselves, but said that he might let us have some money back to buy another one. My question is - what is the likelihood of the trustee releasing some money for another car and how long might it take?
From what I have read from someone elses experience, the money was released to them upon actual sale of the car. So if there is a quick sale then you would get the money quicker than if it took a while to go.
They will also only release money for the purchase of a new car if they decide it is necdessary for you to have a car for work etc and that there is no alternative for example public transport.
I'm sure an expert will be along later to correct me if I am wrong or add to my reply.
Sorry I couldnt have bought you better news.
Soon to be bankrupt. Looking forward to a new start. Baby number 2 due 3rd June 2009.
there is no way of knowing how long the sale of the car will take I have read previous posts suggesting it had taken 4 weeks which is a long time to be without a car when you need one for work.
Hindsight is a wonderful thing but in this situation it's better to sell the car for it's true value prior to bankruptcy and replace it for approx £2K and keep the surplus funds aside for the OR.
If the OR deems that you do in fact need a car for work he should return up to £2K for a replacement assuming he raises more than £2K on the sale.
It does seem a heavy handed way of going about things as they could potentially jeopardise your job if there is no other way of getting to and fro.
Thank you for the advice. We thought it was heavy handed too. As the vehicle should sell well in excess of £2K is there any recommended way of putting a case forward to release money for another vehicle? Obviously we don't want to upset the OR or trustee but we are in a very tight spot without transport.
Car
Posted - 14 April 2009 : 21:48:42
