bankruptcy advice re house + cars

cinemaman

I am considering declaring myself bankrupt as my business is heavi;ly in debt and continuing to slide deeper and deeper, its really beyond help after the credit crunch. I understand the gen principles of bankrupcy but have 2 questions..

1) I have 3 cars in my name, but all of them are worth little money, 2 are old bangers and worth about £250 each max, and one worth about £900 max. Will these be seized? Considering my business debts are close to 80k, I dont think seizing them will help anyone at all..They are not 'needed' in the strict sense of the word but since they are practically without value and 2 of them are off road anyway needing work, what will happen?

2) My house is in negative equity, its worth less than the mortgage, etc....will this be seized at all as I dont understand fully what they can do with property assets in negative equity..

Thanks for any advice

JCS1

cinemaman wrote: »

I am considering declaring myself bankrupt as my business is heavi;ly in debt and continuing to slide deeper and deeper, its really beyond help after the credit crunch. I understand the gen principles of bankrupcy but have 2 questions..

1) I have 3 cars in my name, but all of them are worth little money, 2 are old bangers and worth about £250 each max, and one worth about £900 max. Will these be seized? Considering my business debts are close to 80k, I dont think seizing them will help anyone at all..They are not 'needed' in the strict sense of the word but since they are practically without value and 2 of them are off road anyway needing work, what will happen? OR will not allow you to keep 3 cars. You will need to put a case that keeping one is essential, and they will probably take the 2 that are off the road. It's a liability issue rather than a value one

2) My house is in negative equity, its worth less than the mortgage, etc....will this be seized at all as I dont understand fully what they can do with property assets in negative equity.. If no equity, you will be given the chance to buy the OR's interest for £1 + costs (think about £211 in total)

Thanks for any advice

Make sure you take advice from one of the free debt charities to discuss your options in detail.

fiveyearplan

Hi and welcome. I don't have anything to add to JCS1's advice but be sure to ask if you have any other questions.