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Discussion and questions about what to expect when your bankruptcy is finished
By kjmc1957
#28006
Hi all, it's been a while since I posted, I was discharged in February 2013, but I'm still paying the OR for the next 2 years, however my car is about to say "cheerio, I've enjoyed our time together but now I'm off to the great scrapyard in the sky" I have no savings, could I call the OR and ask for a payment holiday to use that money to buy a car?
Or, on the off chance I could get a bank loan (which I don't really want to as that's why I'm on this forum in the first place)will the OR reduce my payments to cover the loan? I need the car to get to work which I've already discussed with the OR and she agree's it is a necessity.
And the last part of this question, is there an agreed limit to the value of a car as far as the OR is concerned.
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By Hayden
#28018
Hi Kjmc1957

Good to hear from you and that you were discharged in February. Great news that the bankruptcy seems to have gone smoothly. In terms of your car I think the first thing to do is speak to your OR about the issue. I assume you need a car to get to work and so if you have no car work would be difficult?? As such losing your car and thus your job would put your on going IPA payments in jeopardy. This being the case the OR might be inclined to give you the payment holiday you are looking for as ultimately it helps you both. I would use this line of argument with them.....

I think trying to borrow more now should be the last resort so have a chat to your OR and see what they say first. Then let us know and based on that outcome we can offer more advice :)
By kjmc1957
#28028
Hi Haydn

I spoke to the OR today, she was quite helpful and understanding about the car situation, said I should talk to the company that I pay every month and tell them that I have agreed with the OR that I can have a 3 month payment holiday, however her final comment was that the 3 months will be added onto the end of the 3 years, now this may be sour grapes but if I went to the bank and managed to get a loan I could approach the OR and ask them to reduce my monthly payment to allow me to service the loan, I suspect that they wouldn't then add this amount on to the end of the 3 years, would they? is the 36 month term set in stone or can the OR vary the length of time I make the repayments.
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By James Falla
#28029
Hi there kjmc1957

I am pleased to hear that you have been discharged from your bankruptcy. In terms of your car I think your best option will be to take the payment holiday that the OR has agreed to. I am very pleased to hear that they have been so reasonable about this.

I am pretty sure that you will not be able to get a loan at this stage. Remember your credit rating will still be poor for the next 5 years. At the end of the day, there is nothing stopping you applying for a loan of course. If you are lucky enough to be approved I suggest you do not take it without speaking to the OR first. At the end of the day they might let you reduce your payments to accommodate the loan but again I think they will then ask you to extend your payments so that the amount you pay to the OR overall is not affected. The OR can extend a payment plan in this way if they see fit. As such you would probably end up paying for much longer in this scenario.
By kjmc1957
#28034
Hi James

Thanks for the advice, I'll cross my fingers and hope that the car keeps going until I have enough for a good run around.

Regards
KJMC1957
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By Hayden
#28053
Hi KJMC1957

I agree with James, I do not think you are going to be able to borrow to pay for a new car given your credit rating. As such saving as much as you can as fast as you can is your best option. Great news that the OR has given you the three month break so at least you can put this towards the saving pot.

By the way who do you make your bankruptcy payments too? Is it Moonbeaver?
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By Geraldine
#28064
You just need to speak to MoonBeaver about the OR saying you can have a payment holiday KJMC1957. Although I would have thought they would require confirmation from the OR themselves in the form of a letter or e-mail.....