Going Bankcrupt

[Everton30]

Hi guys

This is my first posting on this forum and I would really appreciate some advise before I lose the plot altogether!! I apologise in advance for all the questions i am going to ask, but I need to be sure BR is the best for me. Here goes:

1 We are in the process of selling our property, once it has sold there will be about £20k left once we have paid the mortgage and secured loans off. The house is in mine and my husbands name but there is only me going BR, will the OR say i have to give all the money back or just half of it??

2 I pay into a private pension through my employeer, will the OR make me stop paying into this? (which I don't think my employeer will allow)

3 We currently have two cars, we both need one to get to work. Both cars are in my name but we are selling the most expensive one (this also has a private plate on it!!), because it is too expensive to run. We are then going to buy a cheaper one which is going to go in my husbands name as he will use that one. Will they take any of the cars of me??

Again, apologies for all the questions. Any advise would be more than appreciated.[:(]

[MelanieGiles]

Hi Everton and welcome to the forum

If you go bankrupt, it is only your share of the equity which will need to be handed over the the Trustee so your husband can keep his share.

So long as your pension contributions are reasonable, it is unlikley that the OR will insist that these be stopped.

Your car will be looked at by the OR, and if it is worth more than £3,500 you can expect it to be taken from you and sold. You will be allowed a modest allowance to purchase a replacement vehicle - perhaps between £2,000 and £2,500. Are both cars registered in your name at the moment?

Regards, Melanie Giles, Insolvency Practitioner for over 20 years.

To appoint me as your IP visit:
http://www.melaniegiles.com/ivaEnquiry.asp

See customer feedback at:
http://www.iva.com/iva_companies/IVA_Advice_Bureau.asp

[Everton30]

Hi Melanie

Yes, both cars are registered to me at the moment but we are selling the most expensive one as it costs to much to run and we are trying to reduce out outgoings.(My husband is going to do an IVA as BR is not an option for him because of his job) We are then going to buy a cheaper one, this one will be registered in my husbands name. The one that will be left in my name is worth about £2000......

[MelanieGiles]

When you sell the car, do you intend to hold the proceeds - and also that of the cherished plate - to the order of the eventual Trustee? This would be advisable.

Regards, Melanie Giles, Insolvency Practitioner for over 20 years.

To appoint me as your IP visit:
http://www.melaniegiles.com/ivaEnquiry.asp

See customer feedback at:
http://www.iva.com/iva_companies/IVA_Advice_Bureau.asp

[michelle.l]

Hi Everton30,

We have just gone BR we sold our car last week as it was worth nearly £6,000 and bought a cheaper one for £3,200...as we knew we wouldn't be able to keep a car worth that much and to be honest it was drinking the petrol!!!

We have kept the surplus to hand over to the OR next week when we meet her. Hopefully she will be ok with this, we have mentioned it to her clerk and she didn't see a problem.

Michelle

[Everton30]

Melanie,

Thanks alot for the speedy responses.

To reduce outgoings - Is there no way that I could transfer the car we are going to sell into my husbands name before we sell it? Whilst its on my name its actually his car, the car he has for work etc.

The plate that is on the car is technically his as he paid for it.

It sounds complicated , I just want to make sure Im doing the right things before going BR.

Thanks