Author Topic: Bankrupt!!  (Read 908 times)

ryank78

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Bankrupt!!
« on: Feb 23, 2011, 04:20:20 PM »
Hi there,
 
I have debts of upto £26000 through bank loans and a car fiance loan. I started a IVA and now have stopped paying as my circumstances have changed and i was paying for years just to pay there fees!! I recently sold my car which i have a loan still outstanding on with the fiance company to a friend for £4000. Im thnking bankruptcy is my only option now, can you help me as i keep hearing different stories, can i keep the money from car and spend it and then declare bankrupt or will they ask where it has gone or why i didnt pay the loan off or even reclaim the car from the person i sold it too?
 
thanx for help!

James Falla

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Re: Bankrupt!!
« Reply #1 on: Feb 23, 2011, 07:13:37 PM »
Hi there
 
 
Was your car loan secured against the vehicle ie an HP or finance lease? If so then actually you had no right to sell the car because you do not own it. If the finance company find out, they could take the car back from your friend. Notwithstanding this, you could declare bankruptcy but I would advise you not to spend the £4000 first. You could use £600 of it for the bankrutpcy fee but you should then hand the rest over to the official reciever so it can be distributed fairly to your creditors.
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