Bankruptcy

ELA2

Hello, 

I’m currently looking at bankruptcy as my only option, I have a lot of debt from an abusive ex partner. Anyway 

1st question I have a car, I’m not sure how much it’s worth but I use it to drive my kids to school and for my university and placements so will this be taken off me? I read that they can give you money to buy a cheaper car but I currently have 7 seater as I have 4 kids so I don’t think I could get a cheaper car 

2nd what are the ins and outs of bankruptcy? From filling out the form what are the next steps, what happens every month or when you spend money? What happens when you get discharged? I’m so scared but I need to do this for our future 

Debbie9009

There is a board for bankruptcy with people who know a lot about this.  You might want to post there, or ask a mod to move your post for you.  I think you will get a lot of help on there.

https://forums.moneysavingexpert.com/categories/bankruptcy-living-with-it

MSE_ForumTeam5

We've moved this thread and removed some off-topic responses

sourcrates

@ELA2 Well I see your thread is almost a month old, it seems we are a little late to the party here, but I will try and answer your questions just in case you do check back in for an update.

In Bankruptcy you are allowed a car worth up to 2k, you might get away with a little bit more if you can show there is a specific need for it, its about having your ducks all in a row before you click on the button really, Parkers guide is often used to determine value.

Bankruptcy these days is mostly an online process, you apply on the .Gov website, fill in the application, pay your fee, and click submit, how things go after that depends on how complex your case is.

A simple bankruptcy, with say just consumer credit debts, no property involved, no complex issues to sort out, will be fairly simple, after submission, you will be made bankrupt, the OR will be in touch, you will have a meeting, usually over the phone these days, where they will discuss your case with you, its mainly a box ticking exercise, they are not looking to catch you out.

You will have filled out your budget during the application, if you have sufficient disposable income, you may get an IPA (income payment arrangement) for 3 years, if you don`t, or your income is solely benefits based, you won`t get one.

And honestly, that is it, you live within that budget for 12 months, after which you are discharged, and your debts are wiped, that is it basically, 5 years after that your credit file will be clear of all information regarding the debts/bankruptcy etc.

Of course if your circumstances are more complicated than that, then those issues will need to be sorted out, but for simple bankruptcies, that pretty much describes it.