Just a few questions about going bankrupt

johny2008

Sorry to ask all this but hope someone can help.

Just had my contract terminated last week so have no job.
I m looking but not alot about at the moment and those that are are not paying much to cover debts i have,
Firstly i would like to know what could hapen.

I owe 20,000 on the car inc interest ( i only took it out three weeks ago)
I have spoken to them and they wont budge on payment, so do I start paying or do I leave it until they reposses it? either way im up the creek, if i pay the next two mths which i can i wiil be short of money then then i wont be able to pay and it will get repossesd anyway.

Credit cards i owe about £3500 i am covered with insurance on them

three other depts i am paying for which is about £2000 and came to an agreement to pay them monthly.

I have a container which i share with a friend with some stuff in, not worth much £1000 tops.

i also bid and won a number plate from dvla which i have to pay in 10 days £400

The questions are what shall i do about car? is it worth paying when i might not be able to pay in two mths anyway?

if i went bankrupt would they claim container? or should i put it in mates name?

I have an agreement with dvla that i will pay, do i buy it? if i do will i lose the playt if i go bankrupt? I do have another car to put it on.

I dont own a property or have any assets and have had to move back in with perents, would they lose items if i was bankrupt?

When i was working they put expense in a spare account of mine, i have yet to pay it back its about £2500, if i start to take it out would it look bad if i go bankrupt?

I have a e bay account would that be effected?

How far back do they look into your bank accounts?

do you have to tell them all bank accounts you have as they freez your accounts and i have one with nothing in that i would like to keep?

not sure what to do for the best, me losing my job was a complete shock I did not expect it, i wouldnt have bought the car if i had an idea this might happen.
Sorry if any of that does not make sense, i have been in touch with deptline and they said bankrupt is an option.

please help

skylight

johny2008 wrote: »

I owe 20,000 on the car inc interest ( i only took it out three weeks ago)
I have spoken to them and they wont budge on payment, so do I start paying or do I leave it until they reposses it? either way im up the creek, if i pay the next two mths which i can i wiil be short of money then then i wont be able to pay and it will get repossesd anyway. What does the HP contract say about BR?? Some have a specific clause that they will reposses if you go BR. If it has this clause then why bother paying??

Credit cards i owe about £3500 i am covered with insurance on them You would think. Most card insurance means nothing which is only really important if you don't go BR. However, if you were to go BR then the card debts would be included in your BR anyway so insurance doesn't matter.

three other depts i am paying for which is about £2000 and came to an agreement to pay them monthly.

I have a container which i share with a friend with some stuff in, not worth much £1000 tops.

i also bid and won a number plate from dvla which i have to pay in 10 days £400

The questions are what shall i do about car? is it worth paying when i might not be able to pay in two mths anyway?

if i went bankrupt would they claim container? or should i put it in mates name? Depends on whats actually in it and its re-sale value. If its odds and sods (possessions etc) then its not even worth mentioning.

I have an agreement with dvla that i will pay, do i buy it? if i do will i lose the playt if i go bankrupt? I do have another car to put it on. Others here have had private plates and haven't even bothered to mention them. It depends on how you pay, cos it will show on a recent credit/debit card/ cheque etc if you pay that way.

I dont own a property or have any assets and have had to move back in with perents, would they lose items if i was bankrupt? They will not be affected at all. UNLESS you have joint debts. The OR cannot realise assets that are not yours. However, if you move back in, don't go BR and cannot handle things, then they are going to get calls/visits from door step collectors/bailifs etc and that would probably worry them silly.

When i was working they put expense in a spare account of mine, i have yet to pay it back its about £2500, if i start to take it out would it look bad if i go bankrupt? Not sure what you mean - as in they put in money in your name and its still there??? Then yes - the OR will see it as yours and will be miffed at it going. BUT can you prove that your parents put it there? A copy cheque paid in and their bank statements? Can you prove nothing has else been paid in or out?? You could just take it now and give it back and argue your case on this basis. But its the proof thats essential.

I have a e bay account would that be effected? No. Unless its business. If its personal stuff you buy/sell then its not even worth mentioning.

How far back do they look into your bank accounts? As long as they like. But usually upto 5 years.

do you have to tell them all bank accounts you have as they freez your accounts and i have one with nothing in that i would like to keep? You have to declare everything. Without a doubt. You are not allowed to have a cheque book etc anyway. Now, you are allowed a bank account but it will need to be a basic one (Co-Op have a good one with no overdraft, but visa debit and online banking). These accounts still have to be declared to the OR, but they are not usually interested in them as they are opened for a purpose (cos you are BR) and there are no debts attached. But you MUST tell them.

not sure what to do for the best, me losing my job was a complete shock I did not expect it, i wouldnt have bought the car if i had an idea this might happen.
Sorry if any of that does not make sense, i have been in touch with deptline and they said bankrupt is an option.

please help

Its a big gamble really. I guess that you only have £5500 in debt plus the car (Is it a car loan or HP??) which is not huge, but is when you have no income. If you took on one of those jobs for lesser money, would you still be able to pay if you moved back home??? Just trying to look at all options for you.

johny2008

The £2500 was money the compony used to pay in my spare account for fuel / food and other stuff but because I have not been working away much it has built up, the money will have to go back to them as no doubt they will ask, or i could leave it in there and let them fight for it if i go bankrupt.

the car is a non cancellable contract, my credit is not that good because i have been made redundant three times now so had to get credit from auto car finance through the funding corperation the loan is based on the car as well as myself if that makes sense, it does state that on termination of the agrement and delivery up of the goods the following will be an event of default:- if a petition for bankruptcy order is presented against you?
on termonation i owe the full amount remaining.

I will prob leave it a month or two before I do this I think so i can sort myself out first.

Thank you for your help

Walter_J

johny2008 wrote: »

The £2500 was money the compony used to pay in my spare account for fuel / food and other stuff but because I have not been working away much it has built up, the money will have to go back to them as no doubt they will ask, or i could leave it in there and let them fight for it if i go bankrupt.

I wouldn't leave it in the account. If you go bankrupt the OR will take it.

I would draw it out in cash and use it to live on while you look for a job and decide what to do. You might want to put aside enough for the bankruptcy fees.