Bankruptcy Newbie

I suggest you cut your hours before your bankruptcy and reflect the reduction in income on your bankruptcy form. It sounds like you cannot continue with the long hours for the sake of your well being. Cutting your hours may mean that you fall behind on debt repayments leading up to bankruptcy approval, but if you go bankrupt shortly after reducing your hours, and put the debts on your form, your creditors cannot chase you once your bankruptcy has been approved. (Caveat -some debts e.g. student loans and fines are debts that cannot be written off by bankruptcy). Bankruptcy is usually approved 48 hours after submitting the form, excluding weekends.

While the car, and money invested in it, is completely at your disposal, I'd sell it and live on the money for a while before going bankrupt when it runs out. That way, you could reduce your hours and see how things look in a few months' time.

Currently your money/assets are yours to do whatever you like with! However, if you were to sell the car at less than market value, the OR would be suspicious you were giving it to a mate and could legally repossess it from the new owner. If you sell the car at a fair rate and use it for genuine living costs, no problem. People in debt will often sell assets to try and stave off the inevitable, so don't worry!


If the car is hire/on credit in anyway, you'd be in trouble for selling it without paying it off, of course.