Author Topic: Will i lose my car if i make myself bankrupt?  (Read 7568 times)

xstacie-mariex

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Will i lose my car if i make myself bankrupt?
« on: Oct 29, 2009, 11:34:43 AM »
I have a clio 2.0 02 plate which is worth around 2500. It has low mileage but was declared a CAT D a few years ago. Its the only car we have to get myself to work and for my wife to get to college and take the kids to and from nursery.
I owe 23,000 have just had a failled IVA after 3 years (BEWARE ANYONE IN AN IVA THEY ARE ONLY OUT TO MAKE MONEY FOR THEMSELVES!!!)and bankruptcy seems the final option. I have been to the CAB, she said it was at the OR discrestion if it'd be sold or not but i find no use in making a comment like that. If i am to make the final decision to go bankcrupt i need facts! She mentioned it would be sold and i would be given £500 to buy something else, but i keep looking for answers on other sites but everyone keeps quoting different prices such as 3000, 2,500 before the car is deemed excessive???? ???
Anyone that has been through the process or just has any clearer guidelines it would be greatly appreciated. Not sure if what part of the country you live in makes a difference but we're in the North East.
Thanks again

smallville

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Re: Will i lose my car if i make myself bankrupt?
« Reply #1 on: Oct 31, 2009, 03:51:57 PM »
Hi,

I cant say in your case but I had an older renault clio that I bought for £400 from a friend.
I went bankrupt and didnt see it as an asset as it wouldnt get much money.
I didnt declare any assets as I didnt have any and they never asked me for anything.

Debtwitch

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Re: Will i lose my car if i make myself bankrupt?
« Reply #2 on: Nov 02, 2009, 05:48:32 PM »
Hi Stacie-Marie

You've been great with your posts on here - I'll try and help you with this one.

There is no definitive guidance on how an individuals assets will be dealt with unfortunately; discretion is applied and can vary between Examiners, however £3000 is generally considered acceptable - similar to the figure in IVAs.  The lady at the CAB was being overly cautious with her £500 estimate.

Kind regards,
Angela Rosler
Insolvency Manager  e: [email protected]

xstacie-mariex

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Re: Will i lose my car if i make myself bankrupt?
« Reply #3 on: Nov 02, 2009, 08:10:27 PM »
Thanks for your help, fingers crossed because i don't really fancy getting a £500 car can't imagine it being very reliable! Plus we'd most probably be spending more on maintence costs with it breaking down every 5 minutes!  :buck2:

Debtwitch

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Re: Will i lose my car if i make myself bankrupt?
« Reply #4 on: Nov 03, 2009, 06:30:37 AM »
That's exactly it! 

There has to be a balance, but you need something reliable to be able to get around.  The OR is aware that you needto be mobile in order to generate an income so that there isn't further benefit on the State due to loss of income.  I would say that because the OR has the benefit of discretion, there is the capacity for reasoned discussion in the event of any queries.

Angela Rosler
Insolvency Manager  e: [email protected]

Electron1

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Re: Will i lose my car if i make myself bankrupt?
« Reply #5 on: Nov 14, 2009, 04:34:25 PM »
Hi there I was declared bankrupt in 2000 and to be honest it was a very bad decision I kept getting letter after letter so don't do it. There are lots of companies out there that will help you they will arrange a payment play. But Do not go to companies that charge for this service. I made this mistake they take a part of the money you pay them to give to your creditors. I have been out of bankruptcy for 10 years now and sorting my life out again. I have always wanted to be self employed and to be honest there is to much tax after tax in the UK. This mite not be for you but I have found something that lets me work the days times and hours I choose and give me quite a income for my efforts. Regarding your car I lost everything including my marriage.so set out a payment plan and if you keep to this plan you should be OK.

Mick         

xstacie-mariex

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Re: Will i lose my car if i make myself bankrupt?
« Reply #6 on: Nov 14, 2009, 07:27:54 PM »
I'm not sure if a payment plan would work for us like i said i owe over 20000 but only have 73 spare income a month (CAB worked it out for me) and somehow don't think 73 a month between 8 or so different companies will be deemed exceptable!!
My wife 'says' she feels relieved after years of looking over our shoulders. It seems to me if u try to do the best thing (IVA) it always seems to bite u in the backside and u end up worse off! The whole finance situation is this country is messed up!
The debt solution company got their money for their fees now no longer want to deal with us....chraming! so after 3 years of paying them we are now back to square 1, still owe the same amount of money and getting threatening letters again! So bankruptcy seems my only way out!

Electron1

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Re: Will i lose my car if i make myself bankrupt?
« Reply #7 on: Nov 16, 2009, 09:49:31 PM »
Yes I agree I think the government in the UK want the country to run down what is British in the UK we have coal why are we importing it dos not add up.On news today they have let prisoners out early because the prisons are over crowded ?