Advice please

Can someone talk me through the process of going bankrupt? Is it just a case of filing for bankruptcy online and waiting for the phone call to go over everything and that’s it? Will we need to pay anything else at all? What happens to a car which is on hire purchase? We have 19 payments left to make. Will that be taken away? We have £25,000 debt . 
Thank you 


  • Minkym00
    Minkym00 Posts: 768
    First Anniversary Name Dropper First Post
    This link will help give you information on the process itself.

    Have you sought any professional debt advice yet to make sure bankruptcy is the right option for you. StepChange are a reputable debt charity.

    As for the car on HP, the Official Receiver will inform the HP company and decide what to do next. As you still have 19 payments left to make there is no equity in the car, so it’s not an asset and the OR will not be interested in it. The problem you will have is that the majority of HP finance agreements include a clause that terminates the contract if the policy holder becomes bankrupt. Check your Ts and Cs. If there is no bankruptcy clause then you may be able to keep it, it depends if the repayments are considered by the OR to be a reasonable expense. 
  • fatbelly
    fatbelly Posts: 20,243
    Name Dropper First Anniversary First Post Cashback Cashier
    The finance company may be OK with a third party making the HP payments.

    When you say 'we have 25k debt', how much is solely yours, how much your partner's, how much joint?
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