Credit while bankrupt

smegs1978

I am after some advise please. I declared myself bankrupt in November 09.

We are expecting another baby in September and will need a bigger car. Rather than the car being luxury it is a necessity to get to work, school and to take my eldery mum to hospital, our current car is also on his last legs and see it lasting about another month or so.

We have been offered a car loan through "mutual" but i have not told them yet i am bankrupt as they go on how we have been a customer in the past rather than checking my credit file.

What are the consequencies to me of not telling them? i know if i borrow more than £500 then i need to let them know, but the loan will be for about £1500.

I am going to try and have it put in just my husband name which will obviously solve the problem.

skibadee

I;m not sure but I think you could get into trouble if you do not tell them.

SadEyed

If the credit is taken in your name - you have to tell them. It's up to Mutual if they then decide to give you the credit - though I suspect that would be unlikely.

If your husband can do it - sounds okay to me.

fermi

smegs1978 wrote: »

What are the consequencies to me of not telling them?

You would be committing an "offence" under Chapter VI of the Insolvency Act 1986.

As said in that Act.....

"A person guilty of any offence under this Chapter is liable to imprisonment or a fine, or both."

snoopy89

i think if its over 500 pounds then they must be told if i remmber. i will be out of br in november, i have been paying car hp all time and not missed a payment and hp company know i went br, they where ok about it, but i dont think they will give me hp again even after november till br is cleared in anther 5 years, is that right.. thanks

GEEGEE8

Just do it in your husbands name.

Don't break the bankruptcy rules, you will get into big trouble as Fermi pointed out.. not worth it.

NGlady

I am not one to judge on here - but I have read a little about bankruptsy on here. Not judging you for being bankrupt, I just dont understand how anybody who has been through this, knowing how lets face it easy it is to get carried away, afterall that car is only x amount more and its got x other features etc etc and borrow more and more could want to even get a little more credit.

GEEGEE8

I think for a little while there is still that urge to want to spend/borrow to enable spending.

It's not good and the OP needs to think long and hard about the bankruptcy and whether the current car can be repaired for less, without taking on debt.

beentheredonethatstilhere

Go to a credit union and see if they can help you.

choydogs

do not do it.

MicheH

When I read the OP's post I knew there would be a post along the lines of how could you want more debt etc.

Personally I agree, I don't ever want to borrow again but I can understand, as a bankrupt, the feeling of being stuck with no where to turn. Our car is a neccestity for DH to work, should that go we have not got hundreds in the bank to get it fixed or god forbid find the money to buy another car. That car keeps the roof over our heads and kids fed.

I can under the OP thinking about this option because to him/her it feels like it is the only option..

... and for the record, should the OP be on here asing for help about finance for a brand new 12 grand car, well yes, I'd be on the soap box too. think about it, the OP is asking about £1500 worth of car. The OR allows a bankrupt (if it's deemed neccesary a car of £2000 in value) I belive that is because a car worth this much is less likely to conk out regularly, as bankrupst we have no facilities to replace all that will go wrong with a £400 motor.

I don't wish to preach, we're just a group of people trying to keep our heads above water.

Edit: forgot to add OP, please disclose to the company though, you'd would bound to be found out and reported. Also give it a real think, is there anyway you could fix the car without having to payout monthly installments and APR's.