Update on bankruptcy and car lease

vivki

So everything is moving slowly. Bankrupt now for 2 months and nothing has happened?

I now have a new job starting 1st January, and the salary will place me below the threshold to enter an IPA.

Hubby has had a letter from the car lease company giving 7 days notice to terminate the car lease due to a bankruptcy clause in the agreement and asking for £11k for early termination. It is a lease where the car goes back after the term - he's 11 months into the 4 year agreement. His Examiner was happy for him to keep the car lease going when he was made bankrupt in September, but even maintaining his payments, RCI are terminating the lease. We can't afford to buy a car, so we're having to make other arrangements which includes taxis - he works nights, in the middle of the country! But we are worried that early termination fee of £11k may not be incorporated into his bankruptcy. I'll let you know though - it may help someone else out there who encounters the same situation.

vivki

Oh and my new job is as a credit controller, which I thought I would not be possible before I took the plunge! And I also have a provisional offer in a civil service role!

debt_doctor

Hi,
The £11k termination fee is an obligation that has occurred due to a liability held prior to the bankruptcy. This makes it a bankruptcy debt, and will be written off.

DD

vivki

Blimey I hope so! I just hope the lady dealing with our bankruptcies confirm so soon. Gawd knows when they will come and get the car!

debt_doctor

40.8 Bankruptcy debts

Bankruptcy debts are defined as [note 9]:

any debt or liability to which the bankrupt is subject at the commencement of the bankruptcy (being the date of the bankruptcy order), any debt or liability to which the bankrupt may become subject after the commencement of bankruptcy, including after discharge from bankruptcy, by reason of any obligation incurred before the commencement of bankruptcy (a contingent liability – see paragraph 40.9),
any amount specified in any criminal bankruptcy order made prior to the commencement of the bankruptcy (criminal bankruptcy orders were abolished in 1988 [note 10] so official receivers are will rarely to encounter such debts), and
any interest provable (see Part 6).

JCS1

vivki wrote: »

Blimey I hope so! I just hope the lady dealing with our bankruptcies confirm so soon. Gawd knows when they will come and get the car!

if you phone and tell them there is no insurance on the car, they tend to turn up quickly.

RyanDodson

Keep going to built a good credit card history