Question re house (& car) in BR

Liberator

Hello all

First off I want to say I'm getting so much info from this site it's untrue, feeling more and more empowered by the day!

My question is that I have now decided to go BR and am busy sorting stuff out and getting more info. As I've said on previous post, I would like to keep my home as am 7 mths pregnant and it would be so much easier to stay in it.

I have just got my flat valued and the Estate Agent has valued it at £155-160k. I owe the bank £157k. Would I be forced to sell my home for £3k equity? I'm guessing no because they probably wouldn't sell it in a way that would achieve full value, but would just like other's opinions on this.

Also, my car is worth around £1500 but I use it for work, would I be forced to sell this too? I don't actually have assets as such so would this make a difference on a £130k+ debt?

I know no-one knows for sure but just wanted to hear thoughts from people that know more about this than me.

Thank you

CCCS_Matthew

Hi there.

As far as your house is concerned, effectively there is no equity in the flat as once sold and legal fees etc have been taken there isn't going to be anything left. With that in mind, there is a good chance you can stay in the property if you were to go bankrupt. The one thing to take in to consideration is the amount you pay on the mortgage in comparison to renting as the OR may look at asking you to pay into an IPA if the difference between the two are substantial.

As for the car, it's going to be down to the OR to make a decision. All vehicles can be taken into consideration, so it's important you make it clear that the car is essential rather than a luxery, and that it justfies the running costs.

In some cases you might be asked to sell the car but are given a small amount back for a run around to get you from A to B, with the remainder paid to the creditors. It is down to the OR though, and I have come across cases where someone with a car worth £1500 has been allowed to keep it.

Hope this helps,
Matthew.