Car insurance DD whilst bankrupt?

Costus

We are in the process of going BR, just filling in forms etc, we were wondering what happens to direct debits for things like car insurance whilst i am an undischarged bankrupt. As things such as these are classed as credit agreements aren't they?
Do i have to pay my whole years car insurance up front, which is £330, or am i allowed to continue paying it as before.
I 'm sure that you guys would have had to deal with this in the past, and i was just wondering how you went about it.
Many thanks in advance.

skylight

If you are giving up the car, then include it as a debt. If you are keeping the car, then add it to your SOA and continue to pay it. You are allowed credit when a BR - its when you need over £500 that you need to inform the creditor of your BR. In this case its a small amount (in relative terms) so don't worry about it.

I have not had a problem with car insurance at all and even changed provider. Beware though, that at the start of some online quotations, some companies ask the question if you are BR - and you need to answer truthfully meaning some will refuse to quote. Thats not often now.

LOUISE22_2

I had the same thought about car insurance last night, so thanks for posting!

gpkwells

As skylight says, you are fine having credit under £500 and the basic account you open after BR will still support DD's and SO's etc so no problems there.

skylight

One small point I should add - bear in mind that if you include it as a debt then you will lose this years no-claims as you obviously have not had any insurance. If you are letting your current car go and getting another, just change the car details rather than including it as a debt and starting again!

Rylynn

Yes thank you from me as well, as I pay mine monthly, was just considering looking for a cheaper quote as mine has gone up by £4 a month:eek: sounds so little til you add it up over 12 months, and I have not made any claims in at least 4 years.

It is a good policy with Zurich and I am sure gives me cover even if I run out of petrol. Yes it covers for breakdown including running out of petrol as long as it is quarter mile away from my home, is that okay for breakdown cover, not much use with these things.

At least this is one worry off my mind IF they let me keep my car as no way have I got the whole amount to pay up front.

RL

Costus

Thanks for you quick replies, i thought about the £500 limit on credit and thought it might be o.k.
But its just the great unknown of starting out in bankruptcy.
Cheers.

gpkwells

Costus,

Keep using this forum and the unknown will quickly become less so!!!!

99% of the people on here will give there upmost to advise and support you through this time!!! It is the best place ever for un-judging guidence.

Good luck in everything!

Be proud!

:beer:

peachyprice

As long as it's under £500 you carry on as normal. If it's over £500 you have to tell them you're BR first.

Peter_Pan

We kept all our direct debits when OH went bankrupt without problem, its only now 11 months on that we have found out if we want to change Company, we can't get instalments, it has to be paid in one go upfront.

PSNautical

sorry to "jack" this thread,

i just moved, and changed my address in my monthly installed car insurance,
consequently (not a good posh area now!:( ) price went up to 55 a month,

so!

i supose my question is, seeing as though tis is an ongoing agreement, ive had for about 7 years, do i have to tell them when i go bankrupt or quietly shift the direct debit to my co op account?

cheers and sorry again for the thread jack..