Bankruptcy - my car

StCyr

Hello everyone,

My husband and I are thinking of going bankrupt (we are currently in a DMP but the creditors are asking more money which we cannot afford). We were wondering if we go bankrupt, will the OR take our car away (est value £4,500 - 6 years old)?

Also, we were wondering if the OR goes through all your statements for the past 5 years to see where the money has gone. We haven't got anything to hide but concerned if the OR is going to pint point some of our spending i.e. holidays??

Thank you for your help

St Cyr

skylight

Yes, yes and probably not.

Firstly the car. Is this owned outright or on HP?? If you own it outright then the OR is likely to want to take the car of that value. However, if a car is essential to you (ie to get to work) then he/she should allow a sum to purchase another.

The OR does look to see your statements - all your credit cards and bank statements. He does need to see where the money has gone and essentially looks for or "hidden" money or something unusual. Obviously like most of us, had no intention of going BR so a holiday or large spending a few years ago will not concern them too much, but large expenditure when you were obviously having difficulties (ie started to default in Jan 08 and booked for Bahamas in Feb 08) then that would obviously be frowned upon.

Have you spoken to the likes of Payplan or CCCS yet?? Its a very good idea to have a chat with them about all your options. Excellent, FREE advice.

StCyr

Thanks for your reply. The car is ours it is not on HP. My husband uses the car everyday to go to work plus he or I have sometimes to travel quite a bit for work purposes. Also, our family live in France so we need the car to go and visit them twice a year (when we can afford it)

We are on a DMP with Payplan, I mentioned Bankruptcy solution to them the other day after some creditors are aksing for more moeny and said that in our circumstances, bankruptcy would ge a good solution. We need to talk to CAB but want as much information and know where to stand and what we risk loosing before going ahead.

welshpaula

hiya
re - bank statements , when i went bankrupt i only had bank statements for past year and none for credit cards,loans etc so that is all i sent OR , he was quite happy with that and i had no problems!
good luck
paula x:o