Bankruptcy and the consiquences

Mart34

Hi Guys,

I'm struggling to make ends meet more and more just lately, arrears on rent and council tax, making it slightly worse at present, roll on the end of the tax year when all arrears should be paid in full.

I have been looking at Bankruptcy as an option more and more lately as it seems i'm never going to be debt free. I have about £15k of debt, but also hold hire purchase agreements which have always been paid on times without fail, i also have a vehicle which is worth in the region of £2000-£2500, when declaring bankruptcy, would i stand to lose these items, think you guys call it Assets, and would the items on HP need to be returned to the provider.

kind regards
Martyn

National_Debtline

Hi Martyn

It is a strong possibility that a vehicle worth £2K-£2.5K would be sold in the event of your bankruptcy. All would depend on the significance of the vehicle and whether keeping it would enable a greater return for creditors than simply selling it straight away. One such scenario might be where you had a reasonably-paid job which involved a lot of mileage and stood to pay in a lot more than the car's value from your surpus income.

Any HP agreements would "vest" in the Official Receiver - that is, they would fall under his/her control and they would decide whether they could be maintained as allowable expenses. Bear in mind though that HP agreements will often contain clauses which result in their immediate termination when the customer goes bankrupt, arrears or not.

All this said, bankruptcy may not necessarily be the only option for dealing with your debts. Have you thought about putting a Statement of Affairs (SoA) up on this forum so that others could offer their suggestions?

http://www.stoozing.com/calculator/soa.php

Regards

Dennis @NDL