Car and bankruptcy

I am considering bankruptcy as I have 25k of debt and struggling as a single parent. My major concern is losing my car..my car is worth £5,500. I live in a rural area and need my car for work and also my son has a condition where we need to attend hospital appts, hospital being a 8 hour round trip and another one being 4.5 hours trip so really need a car. Do they make exceptions sometimes due to individual circumstances or is it a strict rule? 
Thanks

Comments

  • Is the car on finance?

    If it is expect to lose it.

    If not you can only ask - perhaps discuss your case with an insolvency charity FIRST to see what their take is on this.
  • fatbelly
    fatbelly Posts: 20,215
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    edited 12 December 2023 at 7:39PM
    I'm assuming your car is owned outright, you live in England/Wales and you have valued it on Parker's Guide

    If you make out a case for the car being essential and public transport being unavailable then you may be allowed to keep a car worth up to 2k. If it is possible to sell your car then that is what will happen as they have to maximise the sale of your assets for the benefit of your creditors.

    You could consider an IVA, which would protect your car.

    You could wait till the value drops before Bankruptcy

    You could consider a Debt Management Plan

    You could downgrade your car which, subject to you meeting other criteria, mght open up the possibility of a DRO

    If you want us to offer guidance, maybe post a statement of affairs on the debt-free wannabe board

    https://www.lemonfool.co.uk/financecalculators/soa.php

  • My car was borderline..as a relief manager covering a large city I plead my case that I needed my car to be reliable. 
    The examiner for the OR did say reliability is of no concern to them..just the value 
  • JCS1
    JCS1 Posts: 5,276
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    Is the car on finance?

    If it is expect to lose it.

    If not you can only ask - perhaps discuss your case with an insolvency charity FIRST to see what their take is on this.
    Not quite true.

    Depends on the type of finance and if any equity in the vehicle.
  • JCS1 said:
    Is the car on finance?

    If it is expect to lose it.

    If not you can only ask - perhaps discuss your case with an insolvency charity FIRST to see what their take is on this.
    Not quite true.

    Depends on the type of finance and if any equity in the vehicle.
    I would agree with this as I was allowed to keep a car worth 15k on a hp contract with 19k outstanding 
    I'm Ever hopeful!
    :j:j:j:j
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