The DI Bankruptcy School

alastairq

bump....as the elephant said....


cannot this thread be made a stickie one?

dojoman

debtinfo wrote: »

I think that pretty much covers most of them, to tidy it up a bit i would clasify them into 3 main groups,

1) the car is exemptable
2) the car is not exemptable
3) the HP special case

following that into subgroups

1a) there is a reason for exemption and the car is of a low enough value to be exempted outright
1b) there is a reason for exemption and the car is too expensive so OR sells the car and provides replacement or funds for replacement
1c) there is a reason for exemption and the car is too expensive so OR asks Bankrupt/friend/family to pay the difference or offer for difference

2) no reason for exemption
a) OR asks bankrupt/friend/family to buy the car back or make an offer to buy car
b) OR uplifts car and sells it
c) OR scraps car (you may ask why, they can get this done for free and when the car transfers to them at the bankruptcy date the OR is then responsible for it so may need to do something if their is no alternative)

3) car on HP
value of car minus remaining HP = equity
a) equity of car is negative - the OR can Not Adopt the agreement leaving it to the finance company
b) equity is positive but there is an exempt reason
bi) equity of reasonable value then simple exemption takes place and Not adopt agreement
bii) equity of excessive value - take car adopt agreement, sell car, pay finance, give amount back to bankrupt, keep the rest
or) equity of excessive value - ask bankrupt/friend/family to pay difference of make offer for difference between reasonable amount and equity amount, once received, not adopt agreement and exmpt car
c) equity is positive but no exempt reason
i) adopt agreement and sell car and pay finance
ii) ask bankrupt/friend/family to pay difference and then not adopt agreement



As you can see when i often say, it depends on the circumstances, im not joking:D

so next question

exemptable reasons, as many reasons as possible why an exemption may be granted?

Excellent as usual DI;)

fermi

Time for me to set a challenge.

How many errors/misconceptions can you find in the 2 following links?

http://www.payplan.com/debt-news/2012/04/25/how-do-i-declare-myself-bankrupt/

and

http://www.payplan.com/debt-library/bankruptcy-what-will-happen-to-me.php

rossireps

well i notice it says Bankruptcy is only one way of dealing with your debts
umm i think not as there are other ways.
seing a judge,not everyone does i didnt.

OutofDebt-NOT-OutofDanger

Hearing is only in County Court if outside London.

Many people won't need to see the judge.

Don't necessarily have to give up possessions of value unless the sale would release significan cash (e.g. Some would value an iPad, but OR won't be interested in it).

Not always necessary to close business (can't act as director of ltd company, but sole trader is ok providing you're not requesting credit over £500 or the potential creditor is aware of BR).

While your name can appear in local newspapers it is not done as a matter of course (from what I've seen, it tends to be for those who have run a business as a sole trader).

OutofDebt-NOT-OutofDanger

debtinfo wrote: »

3) car on HP
value of car minus remaining HP = equity
a) equity of car is negative - the OR can Not Adopt the agreement leaving it to the finance company

Can I just add that the HP company may try to persuade you to "voluntarily surrender" the vehicle which can leave the BR person with a balance to pay!

They nearly caught me out on this one but just managed to avoid the trap.