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    • MissSB
    • By MissSB 7th Mar 18, 4:19 PM
    • 4Posts
    • 0Thanks
    Questions about Bankruptcy and my car
    • #1
    • 7th Mar 18, 4:19 PM
    Questions about Bankruptcy and my car 7th Mar 18 at 4:19 PM

    Iíve recently had a rejected IVA via PayPlan, with one of the creditors who I owe £10000 to rejected the IVA unless I upped the payments which I just couldnít afford.

    I owe to a number of different creditors and my situation is only worsening so the only option I can see helping me ereally is bankruptcy. I owe in total around £23000 which ranged from loans, credit cards & payday loans.

    Thereís one thing Iím concerned about and thatís my car. Itís probably worth around £4300, although the radio is broke in it which would bring the cost down. I have many reasons why I need my car from health issues, mental health issues, needing it for work, family that live far away, help with shopping for my housebound nan and other things.

    I really want to keep my car. Is it a strict £1000 limit if the OR decides I can keep it. And what are the chances of not being allowed a car. I know someone can pay the differently to the OR if I can get someone to do that.

    I have yet to put my application forward as Iím saving the money I would normally be paying for debts to pay for the bankruptcy.

    If anyone has any advice on the above and anything moving forward it would be much appreciated. Thanks
Page 1
  • National Debtline
    • #2
    • 7th Mar 18, 6:13 PM
    • #2
    • 7th Mar 18, 6:13 PM
    Hi MissSB,

    Bankruptcy is a big decision, so getting full advice from a free debt charity is important before submitting the application.

    With regard to the car, the £1000 is not an absolute, but, the more valuable the car, the more at risk it would be. If a vehicle is essential for you the OR may allow you to sell it and buy something cheaper and take the difference for the creditors. If you wish to keep the exact car you have now, the only option would be for someone to try and buy your interest from the OR, but, this is at their discretion.

    It is fine to save the money that you would normally pay to your debts, in order to pay the bankruptcy fee, and if the creditors are aware of what you are doing, it is unlikely they will take any action. However, if you are threatened with any enforcement action in the mean time, you should get more advice.

    We work as money advisers for National Debtline and have specific permission from MSE to post to try to help those in debt. Read more information on National Debtline in MSE's Debt Problems: What to do and where to get help guide. If you find you're struggling with debt and need further help try our online advice tool My Money Steps
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