Bankruptcy and Assets

Jim-Bob_7

I've written elsewhere that something I'm considering to try and deal with my debts is bankruptcy, and a lot of people here as well as the CAB think it might be a strong option. Honestly it scares the heck out of me, but I'm trying to take the most sensible option possible.

One of my major concerns about Bankruptcy is from something I read in the Insolvency Service guide, and it says that "The Official Receiver/trustee will take control of all your other assets on the making of the bankruptcy order. He or she... will dispose of them and use the money to pay the fees, costs and expenses of the bankruptcy and then your creditors." Since I am unable to work currently then I cannot exclude anything as being needed for business use, so the remaining exclusion is "clothing, bedding, furniture, household equipment and other basic items you and your family need in the home". So at least they can't literally take the shirt from my back it seems.

Does anyone know for sure what kind of things would be therefore seized by the Receiver? Since I was forced to sell my home I'm living again with my parents (at 36 years old, great ) so pretty much all the furniture is theirs. But, are the Receivers likely to start looking at TVs and electrical things like stereos, or video tapes, DVDs, computers, books, old toys, XBox and the rest of the many years worth of 'stuff' I've hoarded together? The individual value of most of it is minimal, apart from the electrical stuff I guess, but collectively it might be worth something, although I'm trying to dispose of things via eBay and suchlike myself, which is slow going. I have no children so I can't claim any of the fun items to be theirs either, which was suggested to me.

Due to my mental health problems following an assault I spend an enormous ammount of time at home, and losing these kind of things would be a real killer blow, especially after having lost so much already.

Another worry is my car. I own it outright fortunately, and it's not worth a lot, but I'd be lost without it.

Does anyone have any advice or know a reliable source to see how far a Receiver might go along these lines?

Thank you all so much for your help.

AlanD_3

Hi there.

Not got there yet myself but the advice I got from on here, CCCS, CAB and MyVesta was as follows:

Cars from £500 upwards MAY be taken but to be honest £1000 is a more realistic cut off figure.

Houses are always iffy if you own them.

Antiques, collectables, oil paintings, property, boats, jewelery (not VERY personal items if it can be justified) and other similar things that have REAL worth and a REAL potential for resale are at risk.

TVs (unless brand new plasma jobbies), videos, DVDs, Fridges, freezers etc are all safe. You are allowed to live as normal. You should not be forced to live a frugal lifestyle.

Anything of exceptional worth is at risk but devaluing and resale potential are also factors... your (theoretical, utterly made up by me) new laptop may be worth £1000 but what is it worth secondhand... AND as it was bought two weeks ago and won't be sold for at least a month it'll be horribly out of date and so on...

You will need to do a full statement of income and outgoings and the OR will apply their judgement to that. You will be able to pay all bills that the OR judges as worthy (it is, apparently, worth arguing over some issues, especially for mental health) and you will be apportioned a percentage of the income left over after paying your bills. This income is called the surplus. Depending on how big the surplus is the percentage taken by the OR can be anything from 0% up to 75% (I think. Anyone want to check I am right?).

I hope this helps.

Alan