Advice on Bankruptcy

Boobydoo

Hi


I've gone through the sticky on this subject, but the links are no longer valid as pointed out and I hoped someone may advise please.


I'm self employed with hardly and income. I receive working tax credits and child tax credits. I have debts which due to no fault, but my own have spiralled out of control and I'm considering declaring myself bankrupt.


I have a caravan on a Credit Agreement and have not fallen behind on payments, but the agreement is in my name and I really don't want to loose the only bit of family enjoyment and ruin it for everyone. I still owe a fair bit on the caravan......if I declare myself bankrupt, will this have to go?


Also, what happens to your bank accounts etc?

Mmusic

Its an asset and would be treated as such. I can't see you keeping it.

longtermplanner

The caravan is on HP? I am going to assume Yes.

In that case it doesn't belong to you, but to the HP lender. The Official Receiver therefore won't be able to sell the caravan. Unless the HP will be ending in the next year before you are discharged from bankruptcy?

The problem is that the OR will not allow you money in your expenses to pay the ongoing HP amounts. You are allowed money for holidays, but it's not a lot. How many in your family and how large are your HP repayments? Could someone else make the repayments eg your partner ? or parents?

There is sometimes a clause in a HP agreement saying that it is cancelled if you go bankrupt. You need to look at your documentation to see if yours has this clause.

If you owe a lot of money (how much) and can repay little, then shouldn't letv this caravan problem stop you from taking the sensible step.Your family may regret losing the caravan, but they will gain plenty from you having solved your debt problem.