Bankruptcy

[chrissa1]

We have been paying off a large debt, (a Personal Guarantee), to a bank, paying as much as �800.00 per month for the past 5 years and now, due to the financial climate can't keep up the payments for a while, said bank has demanded the whole sum.
We haven't got that sort of money so they are going to take our car, a 4 year old Jaguar for which they will get peanuts. They are then going to empty our house. Is that the end of it? Or can they keep coming back to empty our house time and again until the debt is paid. If they forced us to sell it, the Mortgage Lender would take the lion's share. Any advice would be gratefully received.

[sara3]

this is a long winded document, but it should answer all your questions. best of luck x

http://www.insolvency.gov.uk/pdfs/guidanceleaf letspdf/guidetobankruptcy.pdf

[themas]

I take it they have a CCJ and you haven't been able to keep up the payments speciifed in the order. If that is the case, you can go back to Court and ask for the order to be varied. Ask the Court office how to go about this.

However, meanwhile the bank can (& presumably has) instruct bailiffs. The important thing is that they have no power to enter your home when they first come unless they can get in through an open door or window. They cannot force their way in. (Once they have been in, they can enter by force if they need to when they return.) However, they can take goods which are in the open or in unlocked garage or shed etc., so if your car is not in a locked garage try to keep it somewhere away from the house. They can only take goods belonging to the debtor so if you have a partner and the debt is in your sole name they cannot take whatever belongs to your partner. Bailiffs are not too careful about this and you would need evidence of who owned what. They cannot "empty your house" - they have to leave basic essentials of living. Trawl Google for sites giving info on bailiffs powers.

The bank can get a charging order on the house (if you have defaulted on a CCJ) to secure their debt, and apply for an order for sale. It is then up to the Court to decide whether to order a sale.

sara's post refs. to bankruptcy, which could be an option for you but depends on your circumstances.

[chrissa1]

Thank you very much to my two respondents, the information is very helpful. Just one more thing, our car is not fully paid up to the Finance Company yet. Can they take it, as technically it doesn't belong to us yet?

[themas]

Depends what type of finance agreement you have. If it is hire purchase, then the car does not belong to you until the final payment has been made and no creditor of yours can take it. (The same applies if you go bankrupt - the OR cannot take it).

Sometimes finance for car purchase is not hire purchase but some other kind of agreement. In that case, the car does belong to you and can be taken.

Check your finance agreement to see which type it is.