Questions you have before making a decision to go Bankrupt and the Bankruptcy process

Moderators: TalbotWoods, JaneClack

Bybillynomates
#3048 Well here goes.

I have had debts now for many years although not a large amount to most people, they may as well be £50,000/£60,000. We live in rented accom and have no assets apart from a car. My wife is Disabled to the point that she need 24Hr care. We have three children (youngest is 2, oldest is 11.) None of the debts are secured and they amount to just over £7,000 but as I have said they may as well be more. I have managed to negotiate with two creditors lower payments. but the others either don't know my position or are unwilling to negotiate. We have been thinking about the best way to deal with this debt and are concidering making myself bankrupt. For these reasons. I will never be in a position to pay the debts off. We are finding it harder and harder to pay the minimum payments each month and even if we do manage to pay the minimum the debt will never reduce. I can not find employment due to me having to care for my wife and children. The only thing keeping me from going to the court for the application forms is the fact that the O.R may take the car from us to pay some of the debt off. And we need it to give my wife the chance to get out and about. It is an old car (1993) but it is a pajero 4x4. (high up and easier for the wife to get in and out of). paid for with her d.l.a. benefit. does anyone have any advise on this please. I am finding it hard to get any sleep at night as it is. with out the extra worry of the debt and all the letters.
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ByNicky
#3054 Billynomates? Is that one that you just thought of off the top of your head? :D

Firstly, welcome to the forum.

How much do you think the car is worth? Just reading another post in the forum, the poster said that the OR asked for a small sum for the car in order for him to keep it. As your situation is unique, it might be that the OR will let you keep it anyway due to your circumstances. I will be in a better position tomorrow to ask the question to give you a better idea of what the answer may be, but it would help to know how much you think the car is worth first?

If you really think Bankruptcy is your best option, then you would be wise to go for it, at least in a years time you will be in a better position financially without the worry of debt, which by the sounds of it, you can really do without it.

Let me know what you think the value of the car might be, and I'll respond tomorrow with a more definate answer, unless someone comes along with a better reply first.

Dont have anymore sleepless nights about it, it is a situation that can be resolved. :wink:
Bydoglover
#3055 Hi Billy no mates

I'm keeping my car because i filled out a form the OR sent me to excude it form assets as i use it to drive to P/T work.

Once the form has been filled in, they cannot take the car at a later date, even if you give up work.

Does your wife get the higher rate DLA, as in that case it is classed as a motobility car and as its in your wifes name and she choses to use her DLA allowance for a motobility car, then i cannot see how the OR can take it from you.

However, if she gets a different rate and is using the payment to pay for the car on HP or on a loan taken out to purchase the car, which was taken in your name, then the OR will assume the car is yours, no matter who is paying for it.

Hope that makes sense, or someone else on here, knows something i dont.
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ByJaneClack
#3058 Hi there Billy No Mates - which is not the case if you contact us!

On reading through your situation I would think it would be very unlikely that the car would be taken away. It is paid for by your wife's DLA - but is it in her name. If so it has nothing to do with the OR anyway. DLA is a benefit that is paid to the disabled to enhance the quality of their life so should not be used for repaying debts anyway. If it is on HP and in your name - why not contact the company and explain that it is your wife's DLA that is being used to pay for it. If it is a motability car it should be in her name anyway. Let us know a bit more and we may be able to shed more light.
Bybillynomates
#3069 First of all many thanks for you comments. Yes it is a very stressful time at the moment. Nicky the car is an import value as a trade in is about £2500 (only way I could get an estamate of value, it's not in the parkers guide). My wife does have both high rate care and mobility and does use some of the D.L.A for the running costs and upkeep. The vehicle is registered in my name, only because I had a good no-claim bonus and so was cheeper for me to insure.
The type of vehicle was chosen because we have 3 children and it is high enough up for my wife to be lifted in and out of with ease, we could not manage with a normal car due to the hight off the road. If I have to go down the bankrupcy road would I have to include the wifes D.L.A in the o.r's I & E form? I am sure I will have lots of questions in the near future. and once again many thanks for all your help!
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ByJaneClack
#3077 No, you should not include her DLA in the bankruptcy petition. There are really two reasons for this - the first is that the debt is in your name. Now, I am sure that it was spent on the two of you but the bottom line is that legally it is yours and as such her income should not be used to pay your debts. Secondly DLA is given to improve the quality of your wife's life and as such should not be used for paying debts. It could be used for care for her, hairdressing at the house, special food or transport so that her quality of life is a little impaired as it can be. They could (they won't!) technically withdraw it if it is used for paying debts. Although your wife would include it if she were making the petition it would technically be disregarded as income as it would mean she were on other benefits too. So do not worry about this. The thing to think about is getting out from under which is what the new bankruptcy regime is about. I honestly do not think the OR would withdraw the car as it is the DLA that goes towards paying it but you do need to check with the HP company - they are the ones who might terminate the agreement. I know Nicky is seeking some expert advice from the horse's mouth so if there is anything further she will add this.
Last edited by JaneClack on Fri Jan 21, 2005 3:55 pm, edited 1 time in total.
Bybillynomates
#3079 thanks Sarah ans Nicky. the car is not on any H.P or loan it was paid for totaly from money we saved over a long time using any extra from the D.L.A that my wife gets. although it is my wifes car it is registered in my name so how would I put that down on the O.R's form?
Last edited by billynomates on Thu Jan 20, 2005 10:58 am, edited 2 times in total.
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ByNicky
#3080 I have made enquiries, just waiting for a response. :wink:
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ByJaneClack
#3081 I think then that it is very unlikely it will be taken as there is good reason to have it. But it would be good to hear that from an insolvency practitioner!
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ByNicky
#3083 I know, I think I'm gonna get a bullet and put it up his b........ blar blar blar! :mrgreen:
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ByJaneClack
#3084 What the Dickens are you talking about!!!! :wink:
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ByJaneClack
#3085 It's that author again!!! Charles of that name who wrote Great Expectations - not a swear word. :lol:
Bybillynomates
#3086
Nicky wrote:I know, I think I'm gonna get a bullet and put it up his b........ blar blar blar! :mrgreen:


SORRY i DON'T UNDERSTAND? :oops:
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ByJaneClack
#3087 That is because we have not heard back from our insolvency practitioner friend. We are waiting for it so we can put your mind at rest.
Bybillynomates
#3088 :lol: ok thanks :oops:
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