Hang on, let me get this straight....

user55

So a secured debt isn't cleared by bankruptcy, and that includes the cars. So my advice from the CAB to stop paying them was bad surely? Because whatever happens I'm still liable.

There won't be any "equity" in the cars because of the type of finance deals they are.

I know I keep going on about the cars but I don't understand my position on them!

Richard_S

user55 wrote: »

So a secured debt isn't cleared by bankruptcy, and that includes the cars. So my advice from the CAB to stop paying them was bad surely? Because whatever happens I'm still liable.

There won't be any "equity" in the cars because of the type of finance deals they are.

I know I keep going on about the cars but I don't understand my position on them!

Hi user55,

It can get confusing especially where houses are concerned.

Cars are no problem. If there's only a few payments left to make on a car and it's not worth much then chances are the O.R will let you make those payments and keep the car. If a car is worth a lot more than the outstanding payments then the O.R will sell the car, pay off the balance outstanding, give you enough money to buy a cheaper vehicle if you need one and put the rest to your estate. If you're running around in a luxury car with a year or more to repay then the car will be returned to the HPA Company who will sell it and any shortfall will form part of your bky estate.

It's the way the O.R views essential expenditure. They can't justify letting you pay a large sum of money per month to one of your creditors at the expense of the others. If you have cars with outstanding finance on them, they will be included in your bky.

Houses are different because a mortgage or rent is classed as essential expenditure. It depends as to when secured loans are repaid, partially repaid, or unpaid in terms of the date you were declared bankrupt as to whether they're included in your bankruptcy or not.

Hope this hasn't confused you more,

Richard

user55

Thank you Richard, that is a perfect explanation for me!

Phew, I think I get it!