Hubby's potential Insolvency / bankruptcy

[Goldlady]

Hi Red, My IP friend said I didn't have enough income to set up iva and advised me to go BR. But my OH did lots of negotiating with creditors and got all but one (Clydesdale) to freeze interest and accept substantially reduced payments on the basis that it was better than nothing. That was about 18 months ago - I have now asked them all to accept £1 each short term on advice of CAB as our secured loan (GE Money - NASTY people) was in arrears - still negotiating on that one. IP also said credit card people don't like IVAs as most of money goes to IP and they don't actually get their money until the end of the IVA.

I am sure you can talk to OR about the house - I would be interested to know how they value it. Do they just take your word for it? Another thing I have just learned which applies in my case is that when we bought house OH had a 9K grant from council on right to buy which means he owns more of the equity in the house than I do - I have spoken to solicitor about this and she says we can set up a trust which means if I do go BR I only own 2/3 of the equity and not half.

My house smells of tobacco too!

Linda

[Goldlady]

Have found out from a friend who had IVA that they got three independent valuations of his house and took the lowest figure.

[reduk054]

Hi Linda GoldLady, thank you for the research. Hubby had his interview this morning, and felt that the house issue went as well as it possibly could. We have very little equity in the house and a valuation was last done 6 months ago. Due to the low equity, the house will be dealt with by the OR in house (apparently, according to the OR, in some cases a specialist solicitor is used, which can cause havoc).
I have not spoken to the OR, but I am due some paperwork over the next week or so regarding buying hubbys equitable interest. The only trouble now is that the OR wants to sell our asset of a car which is in hubbys name, but this is the car I need in order to earn a living, and if they do sell it then I may as well just give them the keys to the house.
I am none too happy today!
Your OH did really well with the negotiations to your creditors, your OH must be patient and calm! I understand that companies dont like IVAs however it has to be what is best for you. No point in paying what you cant afford!
I will post again when I receive the paperwork about my share of the house or if there are any further developments.
THanks for keeping an eye out for me Goldlady!
Regards Red x

[Goldlady]

Red, unless it is a Ferrari they can;'t take the tools of your trade. Even if car is registered in hubby's name he is not necessarily legal owner. If it is going to stop you earning a living - or make it difficult you should be able to do something about this. If it is a normal sort of car I think you should question this.

[reduk054]

Goldlady, if it was a Ferrari, I would have zoomed off into the sunset. It is a normal car so will see what I can do. Thank you for advice!

[Tau]

Hi Red
If the OR does take the car, he may allow you to purchase one of lesser value, not from your funds but they will pay for it. Dont know how much they allow. You will need to emphasise the fact that it is the tool of your trade even though hubbies name is on the V5 document(log book).
Do you have to take the kids far to school, do you live in a rural area, anything that make a difference to the need of the car. You can see what Im getting at, it might make a difference.
What car do you have and whats it worth, if you dont mind me asking.

Sorry cant help with the request for funds to buy out hubbies half of the house, but the Royal Bank of Halifax seem to want all my dosh at the moment 3 times they have phoned today:o

Good luck and keep well.

[Gingerheid]

The car is going to be a problem, as bankruptcy legislation really doesn't allow for bankrupts to provide other people with cars.

There is, on the face of it, no basis for exempting it as your husband clearly doesn't need it, and it is not a tool of his trade for the same reason. There is also no basis for allowing your husband a cheaper replacement, again because it is his bankruptcy and he doesn't need it.

This leads you to look at who actually paid for it. The registered keeper can indeed be different from the owner.

Was the car originally bought on credit? If yes whose name was the agreement in? How was it paid for? If from a bank account, whose? If it was a joint account was your husbands's car also paid for from it? If funds from a credit card were used, in whose name was the account held? Whose name is / names are on the insurance? If everything was done from joint accounts in joint names, in what proportions of income paid in were your income, his income, and tax credits and benefits? In whose primary name are any tax credit or child benefit claims?

Also, according to the Parkers website, how much is the car worth for a Private sale in poor condition?

[reduk054]

Gingerheid, thank you so much for the advice. Ironically when hubby returns to work (he has just had an op) this car would be the tool of his trade also. I have written to the OR and stated my case, as in order to earn a living I do need a reliable and reasonably modern car. I paid for the HP payments which ended about three months prior to BR, and insurance is in both names, and payments were from joint account. Working tax credits in my name, and I have been chief earner for over a year.
Looked at Parkers and on the BR form we overestimated the cost, however hubbys tele call said that he would be allowed a car of value £2k for his tool of the trade.
Believe me we are not being greedy, I need this car to earn a living or I will have splashed out a small fortune on advertising and phones and paperwork for nothing. I am so cross, and this is after a day of tears last week.
The OR had also said that I could buy out his share of the car, but in honesty i am not in a position to do this as i slogged my guts out in order to pay this debt off so that I could save this year to buy a new car next year. Sorry now I sound like I am whinging (well i am!! )
Tau, thank you for looking out for me, I know I am quoted as saying that BR was a good move for us, but since this all has kicked off I am not sure. I feel really down, and as if I am being punished as well. Car is a corsa worth according to Parkers about 4k in poor state (although between you and me its in a fab state!!)
Sorry to hear that RBof H are still harrassing you, are you ignoring them at present because of their identity crisis? Or toying with them (you give me your DOB and I will give you mine etc...) Keep up with the good work.
Red

[Tau]

Hi red
Dont let things get you down, there is now a light at the end of the tunnel. It might not seem like it at the moment but it will get brighter as the weeks go by.
You have done great in getting this far and its only the nitty gritty left to go now. It will all be over very soon and you will be able to rebuild your lives once again.
We have two cars and I am wondering how the OR will see these, mind you we are both going BR so Im hoping he will treat each case on its own merit, My car is worth about 2k but needs some work doing to it to get it up to that sort of value and the wifes is worth 1k at the very most.
He may say that I dont need a car as I can use the motorbike instead. Dont fancy doing another winter on the bike, did all that when I was younger.

Will be down your way next weekend to see tha sister in law in Heathfield. So put the kettle on and I'll pop in for a cuppa

[gizmo111]

Glad things are getting sorted REd - Nice one to get there ahead of the banks charging order

[Gingerheid]

Originally Posted by reduk054

Gingerheid, thank you so much for the advice. Ironically when hubby returns to work (he has just had an op) this car would be the tool of his trade also.

Ok... this is actually yet another fantastic key to the whole thing; your strongest one.

You can additionally tell them (Or better still your husband if he is well enough) that even in the event they do not accept the car is yours, he will be better very soon (as I'm sure and hope he will be), that he will be looking for work and has a reasonable chance of finding it (which I'm sure he has), but that he will not have a reasonable chance of finding work unless he has use of a motor car (which from what you say he wouldn't, but you need to explain why).

Perhaps a few details to confirm this for them, and that should then be pretty much the end of the story.

It's easier if it turns out the car is actually yours though; that obviously removes the value limit.

All the best, and all the best for hubby's recovery from the op!

[reduk054]

Hey Gizmo, nice to see you back - hope you had a restful break and that you are ok. The only down side about the banks was that hubby was unable to complete his claim for his personal bank charges, and I spent hours (and £!!) getting it through to court, however once the BR was granted, the OR took this case over and wasnt interested in chasing the money!!! Tau - bear this in mind if you are in the middle of claiming bank charges. And of course you can pop in for tea, you have to bring the biccies though! With regard to your cars, I agree that they would both fall under the £2k mark under each individual case, however the bike could be a further asset maybe? (vision of the official receiver zooming off on a bike into the sunset)
Gingerhead, thank you for your support, and logical approach. Hubby did tell the Official Receiver that he would need this car following his recovery from his operation, however they started to argue and say that you would not need such a new car (its 3 years old this year) and that a lower value car would be ok, ...in their opinion. We have not received anything in writing yet so I am unable to clarify where the OR sees this at the moment, but I am in battling mood! Have gone from upset to anger to resolution to win!!!!
Blimey, hope one of my DCAs phone tonight, boy am I in the mood for them!!!
Will keep you posted and thank you all for keeping me sane!
Red

[Gingerheid]

If the situation remains that it's his car this is a problem you can't get over; the value limit is pretty set in stone and it seems clear they'd make something from selling it and giving you £2k.

If you can even make the half the car yours in a legal manner, then of course this is edging well down the road of more trouble than it's worth for them.

[reduk054]

Hi again every one especially Gingerheid, sorry have not been ignoring you, just been dealing with this situation. I sent a letter myself to the OR, stating that I had been paying the HP on the car, and that therefore I have an interest in it, all being that the car is in my husband's name.
The OR did write through and said that his interest was for the creditors, and that the £2k limit was non-movebale, however if I could provide proof of payments then he would look into it further.
So its not all doom and gloom (yet!).
I am collating the paperwork to him ready to post this week.
Red

[reduk054]

Also, Lloyds have just written through and demanding that I pay them back ALL of the joint loan, take it that I (not being BR) am liable for all of this?
And the OD on the joint account?
Where do I stand about bank charges?
Any help appreciated,
thanks
Red