www.iva.co.uk

I live in council rented accomodation with my wife and son.
I have recently been declared as failing an IVA, after changes in circumstances have meant that my outgoings are equal to or even greater than my income.
Nothing in the house is in my name, we've furnished the house from scratch using credit in my wife's name.
My income/expediture does not include payments for these items.
If I go bankrupt, what will happen to these items?
They are standard items such as fridge, cooker, washer, and there's a tft television and dvd player. Also my Wife's computer.
I'm having to sell the car (the only thing in my name) to fund my bankruptcy.

Any help greatly appreciated.

Hiya and welcome to the forum.
Usually household items will be safe, unless they are very valuable and can be classed as an asset. If you are selling your car be careful because the OR will get to know this and it may cause problems as they may see it as disposing of assets.
Is there no other way of raising the cash? You may be able to keep the car if you need it for work so it may be worth keeping it for now.

Hi Chris ... just wanted to say welcome to the Forum and good luck. You'll get lots of good advice here.

Debbie

Hello All,

Thank you for the replies

I'm getting rid of the car to save money per month too.
I'm hoping to get £2000 for it, although the way things are going it'll be sold to a dealer for £1200.
Once I've removed my £485 will I have to keep the rest intact as an asset?

Truth be told, the remainder could easily be swallowed up in our month to month expenditure. There's always something coming needed new for our son, or for my daughter in Ireland. We're struggling on a month to month basis really.

My hospital does a travelcard scheme that would save me between £40-60 per month over running a car.
If I move hospitals to this side of the Tyne, I'll actually walk to work.

Will I actually lose my scrimped money to a payment order?

Cheers

KC

Hi Keith

If you sell you car for cash, then it is not a car anymore it is cash, so you will either need to explain that you need to buy a new car or hand over the money to the Trustee.

You will only likely get an Income Payments Agreement or Order if you have disponable income of more than £80 per month, and then it is likely that you will only need to pay over 50% of that.

Hi,

Thanks for the prompt reply.

Hmm, I'm now wondering if selling the car is indeed the right option at the moment then.
The excess money from it's sale would have come in handy for paying off credit in my wifes name for some of the houselhold stuff, which if not paid off by summer will get an expensive interest rate - but i suppose that'd be quite naughty.

It'd feel like I'm selling the car solely to raise money to go bankrupt, which is a strange concept.
I've tried every which way but lose on these debts since about 1998, and it seems like bankruptcy is the only way to get a fresh start, so I suppose it must be done.

Thanks Again.

KC

You should definately not use money raised from an asset owned by yourself to pay off another party's debts.

Try contacting your local CAB, they might me able to run through the figures you have and give you some other options,
good luck

Ok,

Thanks all.

I'll get the car sold and try to keep the surplus from being lost on such things as toddler gates and a bigger pram etc.

Take Care

KC

downsizing the car is probably the only way to get the £485 in a reasonable time, don't forget that you might need to get ot taxed / insured etc and these things cost money. You also might want to get it serviced & MOT'd prior to B to ensure you don't have any nasty costs during the year.

Hi Mel
In Keiths case if he was allowed to keep the car in bankruptcy[as it's worth about 2k] and THEN sold it am I right in saying that he could keep the money from that sale ?
Regards

Yes - absolutely. Once an asset has been exempted by the OR, there is no reason why the bankrupt cannot sell and use the money for something else - but presumably to exempt it in the first place there was a need for a vehicle.

Hi
I think that Keith can opt for a travelcard scheme instead of running a car
Regards

What is a travelcard scheme?

Pay a monthly fee for using public transport. You get a travel card to board the bus/train/ferry. Costs less money than paying for each journey.