Author Topic: Bankruptcy  (Read 1225 times)

moneytree

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Bankruptcy
« on: Feb 23, 2010, 10:45:43 AM »
Hi,


I'm going to go for bankruptcy. A divorce followed by a year out of work has left me on my knees. I get infrequent work as a contractor and so can't give people a fixed regular income to set up a plan. But my worries are these...


   Will my children's laptops and consoles be classed as my assets?


   My ex-partner is still in the house, how does the OR distinguish between my possession and her possessions?


   What little work I do have requires me to drive 600 miles and I have to have a reliable car. My brother lent me £6k to buy my company car when     I was made redundant. Will I be forced to give it up and buy an unsuitable car?


I'm 50 is this the right thing to do? I have £400K Debt (including the house, £100K unsecured) and I can't see any other way out at the moment.
Please sign my petition http://petitions.number10.

bankruptcy.co.uk

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Re: Bankruptcy
« Reply #1 on: Mar 05, 2010, 02:46:21 PM »
Will my children's laptops and consoles be classed as my assets?
 
1) Please google the "Insolvency Act 1986"
2) Once there, please find section 283.
3) Once there, please look at subsection 2.
4) Read this, it will make you feel a lot better. They are not assets.
 
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My ex partner is still in the house, how does the OR distinguish between my possessions and her possessions?
1) After reading section 283(2) of the Insolvency 1986 you will see that all of the normal contents of your property is exempt from the bankruptcy estate. I.e you will keep it all! (Unless you have any anomalous assets in your home that are extremely valuable), therefore distinguishing household possessions between the two of you is irrelevant!
 
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What little work I do have requires me to drive 600 miles and I have to have a reliable car. my brother lent me £6k to buy my company car when I was made redundant. Will I be forced to give it up and buy an unsuitable car?
 
1) Since you need the car for work, section 283(2) states that such "tools books and vehicles that you need to satisfy your business profession or vocation are exempt" from the bankruptcy estate. This means that theoretically you could keep your car..... In PRACTICE, this is not possible, and you are only allowed a modest vehicle of approx £2000 in value. Should you go bankrupt with your current vehicle you would be provided with a cheque for £2000 to buy a replacement.
 
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I'm 50 is this the right thing to do?
 
1) Age is irrelevant......
 
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I have 400k debt (therefore £300k mortgage   secured and £100k unsecured)
1) All of your unsecured debts will be written off, so bankruptcy releases you from 100k of debt.
2) If your property is in negative equity you will be given the choice to keep it by buying back the beneficial interest for £1   reasonable legal fees (£288). If you decide to keep it you will keep all the secured loans attached onto it, however, if you decide to free yourself from your home, you will write of ALL the debt.
3) If your property is in positive equity you will either a) lose your home b) have a charging order placed on the property or c) and this is preferable, make an offer to the official receiver to keep your home from a 3rd party for the value of the positive equity. In this manner you could keep your home.
 
 
Best of luck!
Raphael Gilbert
 
Raphael Gilbert
Head of Insolvency Divison www.ban