Bankruptcy Question

[toshyboy]

Hi guys

 

I was just wondering if anybody knows if there is a limit for the value of your car where by the official receiver would let you keep it.

 

Would a car worth £2500 been deemed too valuable?

[marmaris30]

I remember reading a couple of years ago that £2000 was considered the limit of 'reasonable' for people who need to keep a car to be able to continue working. They might have increased this but the values will be available somewhere. If you've had it a long time (i.e. you haven't deprived a creditor to pay for the car) and you genuinely need it for work then the worst outcome is that you'll be expected to buy it back for the difference. You might be able to argue that a battered old car isn't appropriate for your work.

[stu007]

Hi

 

This would be a difficult question to answer as each case the Official Reciever deals with is different and all assest that are of value in the bankruptcy are at the revievers discretion as to whether they do actually class it as an asset in your bankruptcy.

 

For info on bankruptcy look at the insolvency service website:

 

www.insolvency.gov.uk/

[Bandit127]

To read the experiences of others, see:

http://forums.moneysavingexpert.com/forumdisplay.php?f=136

 

When I was looking in to bankruptcy in 2009, the concensus seemed to be about £1,000. Back then most people were worried about being alowed to have a car, not how much it was worth.

[National Debtline]

Hello there. If you are in England or Wales it is highly likely that the vehicle would be implicated within the bankruptcy. It is likely that you might have to sell that one and buy a much cheaper vehicle - with the different going to the Official Reciever.

 

Best wishes,

 

NDL.

[abc123def]

Generally the rule of thumb nowadays is if you are deemed to need a car then the value allowed is around £1000. If you current car is worth £2500 it would be taken and sold and you would be allowed £1000 of the sale price to purchase a new car. Alternatively someone else other than you can buy the benefitial interest in it, so would pay the OR £1500 or similar figure so you could keep it.

Sometimes the OR will deem the car as unecessary and that it would be cheaper for you to use public transport when needed so would not allow you expenses to run a car.

[firefox123]

i went bankrupt about 6 months ago and i got to keep my car , as long as its not valued more than £3000

[debtinfo]

As ABC says the general amount (presuming that they agreed that you need a car) nowdays is £1000, but everycase is different as everyones circumstances are different. The Official answer is that they will allow a car if it is deemed necessary and the value of the car is appropriate to the use it is necessary for

[Bandit127]

i went bankrupt about 6 months ago and i got to keep my car , as long as its not valued more than £3000

Were you asked to purchase the beneficial interest? £3k seems extraordinarily generous otherwise and you were lucky I think...

[firefox123]

no they said if it was worth more than £3000 they would take it

[Stigman]

Would a car worth £2500 been deemed too valuable?

 

Who valued your car at £2500? You? Trade? Car Price Guide i.e. Glass/Parkers?

 

Stigman