Can I keep my car?

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Olisue
Olisue Posts: 3 Newbie
in Bankruptcy & living with it
Hello everyone
I’m saving up for the bankruptcy fees (only £600 to go lol) because after trying to manage my £20K debt via a DMP I have realised I will never pay it off. I really want to go bankrupt asap but I’m worried about my car. It’s a 2010 Corsa, on finance with Motonovo. Only worth about £2.5K and I pay £139 a month for the finance. Another 2 years of payments to go. Do you think I will have to give the car back to the finance company? I need it to get to work, public transport isn’t a realistic option for me.

Also, while I’m here, do you think I will have to make payments to my creditors once I go bankrupt. My salary is modest (£23K). My husband earns more than me but he also has debts and a DMP with stepchange. If I have to pay back something then thats fair enough, I’d just like to know if its a real possibility before I press the button.

Thanks in advance!

Comments

  • sourcrates
    sourcrates Posts: 28,888 Ambassador
    First Anniversary Name Dropper First Post Photogenic
    edited 27 May 2018 at 6:43PM
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    Hi,


    Your car, dependent on the type of finance, is at risk yes, its a debt, so would be included in your bankruptcy.
    However there are circumstances where the OR may allow you to keep it,

    Some info here :


    https://www.stepchange.org/debt-info/bankruptcy-and-my-car.aspx


    If you have £20 or more spare income, after all essential household payments have been made, then you will get an IPA yes.
    I’m a Forum Ambassador and I support the Forum Team on the Debt free wannabe, Credit file and ratings, and Bankruptcy and living with it boards. If you need any help on these boards, do let me know. Please note that Ambassadors are not moderators. Any posts you spot in breach of the Forum Rules should be reported via the report button, or by emailing forumteam@moneysavingexpert.com. All views are my own and not the official line of MoneySavingExpert.For free non-judgemental debt advice, contact either Stepchange, National Debtline, or CitizensAdviceBureaux.Link to SOA Calculator- https://www.stoozing.com/soa.php The "provit letter" is here-https://forums.moneysavingexpert.com/discussion/2607247/letter-when-you-know-nothing-about-about-the-debt-aka-prove-it-letter
  • Olisue
    Olisue Posts: 3 Newbie
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    Thanks for the info
  • TimeToRebuild
    TimeToRebuild Posts: 39 Forumite
    First Anniversary First Post
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    You need to check your contract with them, i was with motonovo and they cancelled the contract and took the car back.
  • System
    System Posts: 178,094 Community Admin
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    In regards to the payments to creditors from salary, judging by what many people today think of as essential the Official Receivers definition of essentials will be most likely different to yours so don't be surprised when they say what the amount you can have is. It may even be higher than you think if you're someone who doesn't spend on clothes and haircuts but if you're someone who thinks Sky TV is an essential it may not be so pleasant.
  • Olisue
    Olisue Posts: 3 Newbie
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    Went Bankrupt last month, got a letter from MotoNovo today - they’re cancelling my agreement and either want me to settle the outstanding amount or they will collect the car in 11 days :-(
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