Quizzes & Puzzles14 mins ago
Losing Car To Bankruptcy
4 Answers
Hi
I’m thinking of applying for bankruptcy after having built up debts and struggling to find work after a serious illness.
I’m 30yrs old so I don’t own a home but I do have a car valued at prob £6.5k which I use to go to work (when I have a job) and to hospital appointments. Would I be made to give up the car as part of the bankruptcy?
I’m thinking of applying for bankruptcy after having built up debts and struggling to find work after a serious illness.
I’m 30yrs old so I don’t own a home but I do have a car valued at prob £6.5k which I use to go to work (when I have a job) and to hospital appointments. Would I be made to give up the car as part of the bankruptcy?
Answers
Best Answer
No best answer has yet been selected by samlouis83. Once a best answer has been selected, it will be shown here.
For more on marking an answer as the "Best Answer", please visit our FAQ.If the Official Receiver believes that you can get by without a car, then you'll lose it. (NB: Simple 'inconvenience' isn't a good enough reason to retain the use of a car. If, instead of a 15 minute drive, you could still get to work by taking an 1½ hour journey using two connecting buses, the OR would almost certainly rule that you don't actually need the use of a car).
If the OR recognises that you really do need a car (e.g. because you're a painter and decorator who needs to convey the tools of his trade), you'll still lose your existing car but you'll be allowed to keep £1000 to buy a cheaper vehicle.
https:/ /www.st epchang e.org/d ebt-inf o/bankr uptcy-a nd-my-c ar.aspx
Bankruptcy isn't always the easy way out that it can seem to be (if only because you have to find the £680 fee to actually enter bankruptcy). Always seek independent advice (e.g. from StepChange) before taking any form of action to solve debt problems:
https:/ /www.st epchang e.org/
If the OR recognises that you really do need a car (e.g. because you're a painter and decorator who needs to convey the tools of his trade), you'll still lose your existing car but you'll be allowed to keep £1000 to buy a cheaper vehicle.
https:/
Bankruptcy isn't always the easy way out that it can seem to be (if only because you have to find the £680 fee to actually enter bankruptcy). Always seek independent advice (e.g. from StepChange) before taking any form of action to solve debt problems:
https:/
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