Bankruptcy or IVA

caz2007

Hi I'm posting this on behalf of my friend ... She is currently in debt to the tune of approx £57K shared between her n her partner no joint debt just combined .. She's considering options n been advised bankruptcy poss best solution .. I agreed being a current bankrupt myself but it's a particular issue she's stuck on n I can't help .. The issue being that she has a car on a lease which she needs for work as is not able to use public transport as moves between various location her and her partner share the car as he also has to travel once a week 100 mile round trip to work .. They do get petrol allowance so this is not claimed as an outgoing but if u go bankrupt what would happen with the car ? As they need one between them n don't have cash to buy one within the £1k allowance ?? Any support be great.. If she goes iva can she keep her car lease

IF

Hi caz2007, Until any posters reply, do ask your friend to contact one of the following debt charities. Please ask her to try these as they don't charge and are impartial.

* Blue text on MSE usually signifies hyperlinks, click on the blue links below *

Main recommended sources of help:

• National Debtline - Website: National Debtline Telephone: 0808 808 4000
• Citizens Advice Bureau - Website: Citizens Advice or visit your local CAB centre (find nearest)
• StepChange (formerly CCCS) - Website: StepChange Telephone: 0800 138 1111

Others:

• Debt Advice Foundation
  
• Christians Against Poverty
• Business Debtline
  
• PayPlan
• TaxAid - Help with tax debts.
• Debt Support Trust
  

Some guides to read too

Bankruptcy guide CAB - Click here

Bankruptcy NDL Guide - Click here

IVA guide CAB - Click here

IVA guide NDL - Click here


Best Wishes
IF

National_Debtline

Hello there, the following is taken directly from the Insolvency Service's guidelines (please excuse the weird formatting):

I am buying a vehicle on a finance agreement. What will happen to this agreement?


A finance agreement can be a hire purchase, conditional sale, or leasing agreement. Under these agreements you do not own the vehicle. The terms usually give the finance company (the hiring owner) the right to end the agreement in certain circumstances. The hiring owner canusually take back the vehicle if a bankruptcy or winding-up order is made.

The official receiver will find out from the finance company what kind of agreement it is,the amount owing under the agreement, and the settlement figure.

Depending on the value of the vehicle, the official receiver can then decidewhether there would be any benefit to your bankruptcy estate in selling it. If there would be no benefit, the official receiver will ask the hiring owner tocollect the vehicle as soon as possible.

If the payments under the agreement are up to date, the finance company might agree to another person taking over the agreement.

If you simply borrowed the money from a bank or finance company to buy the vehicle, they are unlikely to have any rights to take back the vehicle.

What if someone has made payments to the finance company on my behalf?

If someone else has paid instalments on your behalf, it does not mean they have any rights of ownership to the vehicle. The official receiver would treat the repayments as a loan. The person who has made the repayments may make a claim in your bankruptcy. They might ask the finance company if they can take over the agreement.