The bankruptcy application says “It is very unlikely that items you need for your daily life (eg washing machine, sofa, refrigerator) will be sold“.
Here are a selection of questions here that people have asked about what may happen to the things they own if in bankrupty.
I may not have mentioned your exact situation, but the answers here try explain how the Official Receiver makes decisions, so you can work out what is likely to happen.
Contents
The OR only wants to know about things that are worth more than £500
On the bankruptcy application, you have to list things you own that are worth more than £500.
The two key points here are:
- you have to own it. If it belongs to someone else, you are not the owner.
- what something is worth now is what you could sell it for. It doesn’t matter what it originally cost.
Most things in your house have very little second-hand value. The carpet in your bedroom may be fairly new and good quality but if you – or the official receiver – sold it, it would fetch almost nothing.
So if you are worried about a specific item, try to find a similar one for sale, for example on eBay.
Some of the language you may see used about bankruptcy on the internet sounds very alarming. “The Official Receiver will take control of your assets”…
But for the vast majority of people, bankruptcy is a non-invasive procedure. No one comes to your house to make a list of the things in it.
Will I lose my lawnmower?
A lawnmower is a basic piece of domestic equipment – most people with gardens have one.
The Official Receiver’s general approach is that you will be able to keep normal domestic objects providing they aren’t worth more than reasonable replacements. This applies to clothes, furniture, carpets, bedding, electrical goods etc. Most people who go bankrupt do not lose ANY domestic possessions.
So your lawnmower is that it is almost certainly safe. The Official Receiver is unlikely to be interested in it unless it is very new and expensive.
If you have recently bought a splendid ride-on mower then it will be at risk, but a normal mower, no.
Can I keep my caravan?
The answer here is probably No.
It isn’t essential, even if it lets you have a cheap holiday every year. You will need to list it on your bankruptcy application unless you are sure it is worth less than £500.
One option might be for a relative to buy your caravan from the OR and let you use it. If you want to do this, list the caravan as one of your assets on your bankruptcy forms and include its second-hand value. Then at your interview with the OR after bankruptcy, explain that your parents would like to buy the caravan.
Do they take away children’s games consoles?
No, they belong to your children, not you.
My brother’s jet skis are in my garage
This isn’t a problem – they don’t belong to you, so they are not at risk. You don’t need to list them on your bankruptcy application. No-one will come and inspect your house and contents.
Of course this does assume that your credit card statement doesn’t show that you bought two jet skis last year. If it does, you are going to have to explain where they are…
Will the OR take my husband’s car which I drive?
Your marriage vows may have said “for richer, for poorer”, but to the Official Receiver, you are two separate people with their own incomes, debts and possessions. So what matters is not who drives the car, but who owns it.
If you are going bankrupt and he isn’t, any things which belong to him are irrelevant. If you are the registered keeper of the car, then the OR will start off assuming that the car belongs to you. But being the registered keeper is not the same as being the owner – if you can produce proof that your husband bought the car then it will not be at risk.
My car is worth more than £4,000
A car that is worth less than £4,000 isn’t a problem in bankruptcy if it is essential for you. If you can show the OR that you need the car, for example to get to work, take the children to school etc, then the OR will agree that you can keep it.
When you are valuing a car to put on your bankruptcy application, use Parker’s guide. And unless it’s pretty new, use “poor condition”.
If your car is worth more than £4,000, then your options are:
- to have it sold and be given money, about £3,250 to buy a replacement, or
- for someone to buy it from the OR and let you continue to drive it, see the question about caravans above. If the car is worth say £5,000 someone would only have to pay £1,000 to buy it as you would have been allowed to keep a car that was worth £4,000.
If my car is included in bankruptcy can I sell it to a friend to keep it
Yes, see the question about caravans above. It’s best to wait until after you have gone bankrupt to do this.
If the OR doesn’t agree that you need a car then your friend can still buy it for the full price. However you have to be careful here because if the OR doesn’t accept that you need one, then you won’t be able to include car costs (road tax, insurance, petrol etc) in your expenses.
You can still pay for these things – the OR doesn’t check up what you spend money on – but if you have an IPA set, then you may not have enough money left to be able to afford them.
Will I lose a motability car?
No, you don’t own this car, it’s just leased so it isn’t an asset of yours.
The OR will have no interest in it. Don’t list it on your bankruptcy application.
What about my wedding ring and engagement ring?
The OR does not want your wedding ring unless it is very unusual and very expensive.
Engagement rings… well it does depend a bit on how much it is worth. But second-hand jewellery is often worth a lot less than you think…
You are not expected to list your engagement ring on your bankruptcy application form. You won’t be asked by the OR why it isn’t there or how much it is worth.
If I’m bankrupt do they take my shares?
Yes, you should expect to lose all financial assets such as savings, shares and bonds. You need to list these shares as assets.
Publicly traded shares will be sold by the OR. If you have shares in a private company, it can be difficult to value these. Talk to Business Debtline about this problem. If the holding is significant and you think they are valuable, it might be better to look at an IVA instead.
Can they find out that I have premium bonds?
Yes, very easily, your name is on the National Savings & Investments database, which belongs to the government!
This is a very foolish thing to try to conceal, list them on your bankruptcy application. Or sell them and use the money to pay your bankruptcy fees!
Don’t give things away
If you have read this article and are still worried the OR will take something of yours, you can’t get round this problem by giving it away. The bankruptcy application has a section where you are asked if you have given away or sold things for less than their value.
Those jet skis that you bought last year… you can’t say they aren’t yours because you gave them to your brother as a present.
If you give away or sell things to relatives or friends for less than they are worth before you go bankrupt, the OR has wide powers to demand that they are returned and you may also be facing a Bankruptcy Restrictions Order.
Bankruptcy – the big Qs (house, job etc)
Bankruptcy Qs – can the OR make me… ?
A Guide to Bankruptcy – what really happens
Chrisso says
i filed for bankruptcy last month after being divorced by me ex whilst she kept the house changing the locks leaving me to sleep on my parents sofa but my ex was kind enough to let me keep the £17,000 debts and no where to live so bankruptcy was my only option to get rid of the debts as she has her new bloke living in my house i stopped paying the mortgage too but now i have started this process of bankruptcy so has anybody got any tips ?
Sara (Debt Camel) says
hi Chrisso, if you went bankrupt last month, you have probably already sorted out a new bank account and had your interview with the OR’s office. Best tip is to get fanatical about budgeting and to save up a small emergency fund, see https://debtcamel.co.uk/emergency-fund-first-aid-kit/ as you will find it impossible to borrow anything until you are discharged, and hard even after that. Is anything in particular worrying you?
Chrisso says
In my first telephone conversation with the OR he said i could keep the bank account that my wages go into and my direct debits come out of but i found out 4 days ago i couldnt get any money out to put fuel in my car to get to work as my account is frozen so i was wondering is this how they perform by blocking me from taking money out? Also i asked the question about whats going to hapen to my overtime money is that mine or are they going to snatch that ? Just waiting for a reply
Sara (Debt Camel) says
It’s not the OR blocking the account, it’s your bank. Read this article on bank accounts: https://debtcamel.co.uk/bank-accounts-after-bankruptcy/ – you may need to open a new basic bank account with Barclays. Overtime – if you have an IPA (Income Payment Agreement) set, then you may lose all your overtime :( This https://forums.moneysavingexpert.com/forumdisplay.php?f=136 is a good place for bankruptcy queries – you’ll get lots of replies from people who have been through it.
Karl says
Feel for you dude
My ex tried the same, but I simply refused to leave my home or my children) 5 boyfriends later she cracked first and walked.
Now stuck in a house in negative equity and arrears, with almost 50,000 of unsecured debt on the doormat.
Im looking at bankruptcy too.
Only reason I haven’t already done so is the kids live at home with me.
Good luck mate
Sara (Debt Camel) says
Hi Karl,
I suggest you talk to a debt adviser about your options, see https://debtcamel.co.uk/more-information/where-to-get-help/. With negative equity you can often keep a house in bankruptcy, but if the mortgage is too large to be affordable then this isn’t really an option that makes sense. It may be better to move somewhere else and go bankrupt, then your unsecured debts and the mortgage are all included in your bankruptcy.
Russ says
Hi,
I’m going bankrupt hopefully in May once I finally have the fees together. Feeling really positive about finally having a solution to my debt problems.
The only query I have got is regards to personal items, will the OR come around to the house to look at the goods, we have 2 flat screen tv’s both of which are probably 5+ years old now, I have a PS4 and a PS3 other than these I don’t have any goods worth taking?
My wife has some jewellery but these are hers and she is not going bankrupt herself.
Sara (Debt Camel) says
Hi Russ, no-one visits your house to inspect its contents, As this article discusses, it is the second hand value of objects that matters, I doubt you old TVs and playstations would have much resale value at all. And anything that belongs to your wife will not be affected.
Stuart says
I am on the verge of going bankrupt i have some questions that i need clarifying before i proceed. I am having to use credit cards at present to make ends meet.
Is there a cut off point when i should stop using credit cards before going bankrupt
Any monies my wife has, does that have to be declared
My car is worth 2000 will they sell it, i do need a car as i work shifts and there is no public transport
At present i am trying to save money to pay for the bankruptcy, at the same time i am still accruing debt via the usage of cards will that count against me.
Sara (Debt Camel) says
Hi Stuart, Assuming bankruptcy is a the best option for you (which you should take some advice about):
1) You should stop using your credit cards NOW. Taking out more credit before going bankrupt is potentially fraudulent (see https://debtcamel.co.uk/bankrupt-after-borrowing/) but also you need to stop making the minimum card payments and save up that money for bankruptcy fees – see https://debtcamel.co.uk/help-with-bankruptcy-fees/ for other ways to speed this up.
2) no, any money or possessions that your wife has are irrelevant and don’t need to be declared.
3) you will be allowed to have a car, but this one may be sold so you can buy one worth less than £2000 as this article explains.
sarah says
I’m in the process of going bankrupt and due o go to court next week. I’ve had advice about it.
I’ve changed my bank account to Barclays, but I presume I should take out some money in case the account is frozen for a period?
What happens to my utilities I usually pay for those monthly from my account, will I be treated as a new customer now ( I read somewhere I would) where I may need a guarantor or they will insist on a card paying system fitted to in my rented property?
Mobile phone- I currently have a monthly payment that is due to be updated, obviously I’ve not done that will that now be cancelled and have to have SIM only account?
Car Insurance- I usually pay monthly- mine was due for renewal and the current company obviously did a credit check and not refused but said unable to insure this year, so I have reinsured with another company, paying monthly but is this counted credit? will that be cancelled. My car incidentally is less than £1000,00 in value
Lastly- My current broadband is with SKY which includes sky- cut to basic which the OR may say has to go- fair enough but what about the broadband and current telephone line. I only have the home line for broadband but will that have to stop as well and are their alternatives.
Sorry they may sound like lame questions, but I just want to make sure Ive covered everything and don’t want any major shocks when bankrupt from the OR. Its been a difficult process to go through as it is.
Regards
sarah
Sara (Debt Camel) says
There is no such thing as a “lame question” when it comes to bankruptcy. The “little things” can cause you a lot of stress worrying about them all…
– take some money out in case – yes, sensible idea if you are talking expenses for a week or two here, not thousands…
– if you are up to date with your utility bills you probably won’t get any problems
– if your mobile contract is ending it makes sense to switch to a cheap SIM only option, this is a silly time to get a new iphone6, money is going to be tight for a while!
– there is no problem with existing car insurance, assuming the OR thinks you need a car then its cost will be included in allowable expenses
– the OR will usually regard broadband as an acceptable expense.
A great place for discussing these sorts of questions and getting answers from people who have recently been through bankruptcy (always reassuring!) is MSE’s bankruptcy forum: https://forums.moneysavingexpert.com/forumdisplay.php?f=136
Sarah says
Many thanks for your reply … Sighs a bit of relief!
My only problem will be now I’m guessing if sky allow me to retain my broadband as it’s unlikely as a ‘bankrupt’ I would be able to get a new subscription with another provider
Many thanks again for your reply
Sarah
Pam says
Hi
I have had avise on my debt . From step change . Advised to go bankrupt . Would it go against me if i sell my ps4 and tv to get the money to go bankrupt
Sara (Debt Camel) says
Hi Pam, getting the money for bankruptcy fees can be difficult. Selling things can be a good answer – there are some other ideas here: https://debtcamel.co.uk/help-with-bankruptcy-fees/
RS says
I’m on ESA due to depression and have been advised to go bankrupt to clear my debts.
My daughter has a car on finance that I took out in my name, garage was aware if this, my daughter pays the finance, what happens to the car if I go bankrupt, the car is used for work and getting children to school etc.
I am also getting divorced, my ex husband lives in the caravan that we own in joint names, he refused to buy me out, what would happen to the caravan.
Sara (Debt Camel) says
The car is unlikely to be a problem – you don’t own it, it belongs to the finance company. In theory the finance company may be able to terminate it if you go bankrupt, but if your daughter carries on making the payments this is very unlikely.
The Official Receiver is likely to want the caravan to be sold unless your ex buy back your share from the OR. It may be a good idea to explain this to your ex now.
Jenny reynolds says
Hi there, I’m looking into bankruptcy and wonder if I should move my dd to my husbands account that I’m not connected to? Electric water mobiles etc. Also I have a Hargreaves landsdown sipp account that my dad sorts for me. Will that be lost or counted as a pension?
Thank you in advance
Sara (Debt Camel) says
Hi Jenny, if you decide to go bankrupt you will probably need to open a new basic bank account afterwards, see https://debtcamel.co.uk/bank-accounts-after-bankruptcy/. Moving your DDs to your husband’s account before hand may make this all a bit less stressful.
re your SIPP, that is a pension and so will not be touched (I am assuming you are under 55 if your dad is sorting it out for you!)
Jenny reynolds says
That’s great thank you. My dad told to open the sipp as I didn’t have a company pension. I think he bought shares in sky so I was a bit confused if this still counted as pension or shares.
Sara (Debt Camel) says
They are shares but they are held in a “pension wrapper”, so they won’t be touched.
Jenny reynolds says
Thank you Sara. Sorry to ask a lot of questions, it’s been really helpful talking to you. When I’m filling in the forms and they ask about rent bills etc. Do I give totals or just what comes from me? Ie rent, I do 400 my husband does 400 etc
Sara (Debt Camel) says
Have you seen my pages on how to complete the new online bankruptcy application: https://debtcamel.co.uk/complete-bankruptcy-application/ ?
If you and your husband both earn about the same, then you putting half the bills down is right.
phil says
Hi I’ve fallen behind on my iva, arrears over £1500, and I’m not sure if I can catch up cos my new transport costs are much higher. I’m half way through but I’m looking into going bankrupt, can I still go bankrupt if I have a iva? And can u get help with the bankrupt cost? I can’t sleep at night :-(
Sara (Debt Camel) says
If your costs have gone up it may be that your IVA payments should have gone down? At this point I think you should talk to your IVA firm about your options.
It is possible that bankruptcy might be a better option for you but I think you need to be clear what “carrying on with the IVA” would look like. As you are half way throyght he 5 years if you can manage the rest it could be better than going bankrupt.
I also think you could do with someone independent looking at what they think you might be able to manage in a monthly IVA payment. A good way to find this out would be to call National Debtline 0808 808 4000 and say you are struggling with your IVA nnd your would like to talk through an Income & Expenditure sheet with them so you know what you can realistically propose to your IVA firm. If after doing this I&E sheet, there appears to be little or no spare income, then you could also talk to ND about failing your IVA and going bankrupt.
David Bell says
Hi there, I have been advised to go bankrupt. I have got approximately £95000 worth of debts including unsecured loans, credit cards and store cards etc. I separated from my wife and moved out in 2008, I took my name off from our jointly owned property (title deeds were transfer to my wife’s name only). Since then she has the mortgage on her name and I am renting a council property.
I am on Debt Management Programme since 2007 but recently I have lost my job and unable to make payments towards my DMP and I have got no choice but to go bankrupt.
My question is if the Official Receiver still claim the house as my asset although it was transferred to my wife’s name back in 2008. Any help will be appreciated.
Kind Regards,
David Bell
Sara (Debt Camel) says
It doesn’t sound as though this will be a problem – on the bankruptcy online application https://debtcamel.co.uk/8-sections-bankruptcy-application/ you are asked if you have sold, transferred or given away a property in the last five years.
Stephen says
I was made bankrupt 7 months ago. I have a part time job and drive a cab for 1 night a week. I have as yet no IPA arranged as my income is low. I am also 64 in December. My tax went haywire in April this year and has just been sorted. I have a rebate of approx 1000 pounds. As I see it this is income that the OR would have allowed me if the tax was right. As I have received it as a lump sum will they take it? Also do they apply an IPA when you are 7 months into bankruptcy? Anybody help???
Sara (Debt Camel) says
Tax during the year you are bankrupt is complicated. It may be that this “refund” is part of the change in your tax code to NT, in which case it will go to the Official Receiver. i suggest you ask your OR about this and if you are not happy with the answer, take all the paperwork to your local Citizens Advice and ask for their help to sort it out.
An IPA can be applied at any point before you are discharged. But if the only reason your income appears larger is because of the NT tax code, then this should not result in an IPA.
Bev says
Hi I’m thinking of going bankrupt as Ive got 11000 debt and can’t sleep and scared of the postman posting new letters. I’ve only got a TV myself which is about 7 years old but my 3 children all have a TV ad Xbox one each. Can the children’s items be taken by the OR?
Sara (Debt Camel) says
Are you renting or buying? Do you own a car? How much do you have each month that you could pay towards these debts? I am asking these questions because it is possible that a Debt Relief order may be a mroe suitable options for you – have you talked to a debt adviser about your options?
Children’s property can’t be taken. But you don’t want to abuse this – I wouldn’t be thinking of giving them iPads for Xmas…
karen says
I’m planning on going bankrupt early part of 2017 due to debts of 64k. This was due to credit cards and a shortfall in a house repossession. I work as a nurse for the NHS and Ihave a few questions.
1) Can I work any over time without me being penalised. My manager has currently put me on basic hours meaning basic pay (at my request) but sometimes the ward needs to be covered with extra staff.
2) I currently have a lease car via the NHS salary sacrifice scheme (payment taken at source and off set against tax) I pay £390 which includes everything apart from petrol. I do need a car for work and for children. Would I be able to keep this car?
Sara (Debt Camel) says
Hi Karen, that is a LOT of debt for anyone, so bankruptcy must be a possible option for you. Of course that doesn’t mean it is the RIGHT option NOW.
1) when you go bankrupt, there is an assessment of whether you have any “spare income” after paying for “the essentials”. The amount allowed for “essentials” is reasonable – you and the kids aren’t expected to live on baked beans and out of date bread with no allowance for clothes etc. Only about 1 in 7 people going bankrupt is found to have surplus income and has to make monthly payments (called an IPA) for three years.
If you do have to make monthly payments, then there is little point in any overtime as you would lose the lot – a stupid system, but there it is.
I think it would be good for you to talk to a debt adviser about your current situation and whether you are likely to have to pay an IPA.
If you get through a year without having to make payments, you are then discharged and you can earn as much as you want.
2) the debt adviser can also talk about this as it depends on the details of your case.
Good people to talk to include National Debtline.
Sue says
Hi I know it’s afew years ago now but I was wondering how it went with your Car as I’m in the same position and it’s in the contract that nhs can terminate your car lease if you become bankrupt. Quite worried!
Sara (Debt Camel) says
I’m sorry but it’s very unlikely that Karen will see your question after three years.
My guess is that you need the car for your job. And that the payments are taken directly from your salary. In that case I would be surprised if the finance company decided to terminate the lease as they know there is very little risk to them. If you belong to a union or professional organisation, ask them – they may well have come across the situation before and know what happens, which will be more reassuring for you. Could you come back and say what happens here?
Sue says
I will thankyou very much for your reply. I am in unison and I will speak to them.
Scott says
Hi
I’m being made bankrupt by a creditor and it goes to court beginning of February.
I’m self employed and vat registered and my vat is due at the end of January. If I used some of the money to pay off a logbook loan but ended up not being able to pay my vat would I get in trouble and would the vat be included in the bankruptcy?
Sara (Debt Camel) says
Hi Scott, I think you need specialist advice on your full situation: being made bankrupt, the effect on your business, logbook loans, you tax affairs. Getting this ‘right’ now may make your bankruptcy more straight forward. Call Business Debtline https://www.businessdebtline.org/.
Andy says
Hi Sara
I have filled out my bankruptcy forms on line and have been double checking these. My question is why do I hve to declare my houshold income? My concern is that this is my bankruptcy and not my partners. All my wage (our own tiny LTD company) goes on my debt and most of her money pays our bills etc. We share our money together but I am declaring only my income as its my bankruptcy. My concern is that as a couple we will be better off after bankruptcy and as a couple may have some surplus income, does the OR take the combined houshold income into account when deciding on a IPA or just my money?
Sara (Debt Camel) says
It’s a good question that many people ask – I have been meaning to write an article about this.
The answer is that the OR only looks at your income and your expenses for setting an IPA. But how much of household expenses should be treated as your expenses? The OR expects expenses to be divided according to the incomes of the couple. So if your partner earns about the same as you, they would be expected to pay for half the rent, bills etc. So the OR asks for their income.
Only about 1 in 8 people pay an IPA, so for most people this is an academic discussion.
One further point, you mention your own limited company. If you haven’t taken professional advice about this, I strongly suggest you talk to business Debtline about your plan to go bankrupt and any effect on your business: https://www.businessdebtline.org/. They help people who are self employed or who have small limited companies.
Andy says
Hi Sara
Thanks for this, I havent spoken to businessdebtline yet but I have spoken to my accountant etc. I dont think there will be any affects on my business apart from me stepping down as a Director. myself and my partner pay ourselves the same wage but in essence I am spending her money on my debt also which is clearly unfair. My other question was around child maintenance. I pay £500 per month to my ex partner for the upkeep of my child however with my income relatively low CSA would state I could pay half this. However when we broke up 2.5 years ago I made the promise to pay £500 per month and would like to keep paying this. Could the OR force me to pay less thus possibly reducing my outgoings and release some surplus income to pay creditors?
Sara (Debt Camel) says
I think you need to discuss all this with Business Debtline. They will help you get an income and expenditure which will make it possible to have detailed discussions about an IPA, child maintenence payments etc.
Andy says
Hi Sara
Took advice from the Business Debtline. Another question for you. Can the OR make you reduce child maintenance payments if they feel you are paying too much resulting in you maybe having to enter an IPA? I pay more than the CSA require me to pay to my daugher from a previous relationship however I want to pay this so she has a better standard of living (reside in a better area, schooling etc). My concern was that the OR may try and make me place less to free up income thus making me enter an IPA.
Sheila says
Hello, I have a question about banks. When my account is frozen how do my direct debits get paid? And do I open a new account before or after the start date of bankruptcy?
Sara (Debt Camel) says
Hi Sheila – I think this article https://debtcamel.co.uk/bank-accounts-after-bankruptcy/ will answer your questions.
Stephen Davies says
I have a caravan on finance – it is owned therefore by the finance company. I have paid very little off the total debt. What will happen if I go bankrupt – I want to keep it – it’s my only source of a holiday.
Sara (Debt Camel) says
How large are the monthly payments?
katie says
Hi I went bankrupt In Jan of this year unemployed single parent. I’m march of this year I reconciled with my partner he moved home i am still unemployed he works. I notified OR about this and they were not interested in partners income as mine was zero. Anyway I am considering going back to work my youngest child starts school in September so will be sat at home all day alone. I have been bankrupt for 6 months nearly 8 by September will the OR put an ipa into place if I go to work
Sara (Debt Camel) says
The OR can put an IPA in place until you are discharged at 12 months. If you know how much you could earn, you need to think about the extra costs you would have going to work – pre- and after-school childcare? extra transport costs? and how much any benefits such as child tax credits will drop. Because those will reduce the amount of extra income you get. Then you could talk to a debt adviser (call National Debtline, they could help) about whether an IPA is likely.
Your partner’s income isn’t directly relevant, but you two would be expected to divide the household costs according to your incomes – so if you will only be working part time and earning 1/3 of what he does, he would pay for 2/3s of the rent/ bills/expenses and you would pay for 1/3.
If i9t looks as though an IPA is likely, it would be better to postpone going back to work until you have been discharged and no IPA is possible.
paul simpson says
hi will be discharged from bankruptcy early in October after that will my savings be safe at the moment i can only work part time till middle of November due to health Issues once i am back full time i want to start saving i wont be bothered about rebuilding my credit rating
Sara (Debt Camel) says
If you haven’t had an IPA (monthly payment agreement) imposed by the point you are discharged, one can’t be imposed afterwards. So you can earn as much as you like and save as much as you like – it will all be yours.
Phil says
I had a joint mortgage with my wife around 6 years ago. The house was remortgaged and the mortgage was approx the value of the house. She had an affair, and i moved out approximately 6 years ago. I’m out of work due to long term depression and have been for years. while i was at the house i took on over 25000 of debt, as she couldnt get any credit in her name. Now she lives in the hous with our 19 year old. I can not have any contact with her, as she is one of the main causes of my mental illness. If I apply for bankruptcy, presuming i could borrow the costs, what would I have to do regarding this house?
Sara (Debt Camel) says
Your half of the house would be an asset in your bankruptcy. i think you should talk to a debt adviser about how this works, call National Debtline on 0808 808 4000.
Sunil Depay says
Hi Sara. Me and my partner are considering bankruptcy and i have a question about our car which we want to keep as it is essential for our daily life. It has 4 yrs left on HP. I obtained a Final Settlement Figure of £4000 from the finance company and my wifes’ sister is willing to pay it. I wanted to ask what else i should to make the car safe from bankruptcy. We will be using the car so will pay the insurance and service costs. Thanking you.
Sara (Debt Camel) says
hi Sunil, should be fine for the car – your sister is effectively buying the car but you will be the registered keeper. Do you mind if I ask a few questions? How large are your debts? Your wife’s debts? Any joint debts? HAve you or she defaulted on these already? Also once the HP is paid off, your budget will then be looking better each month – I assume not better enough to avoid bankruptcy?
sunil depay says
Hi Sara. Thanks for your reply. my wife has £53000 and i have £49000 outstanding. All credit card debts. We are currently 2 months behind on the minimum payments but i have made a small token payment to all the companies. The HP is in my name but my wife is the registered keeper. I spoke to National Debtline who advised me that the car would become a transferred asset and could be called back by the OR and sold to raise money. I was wondering whether it would be a good idea for my wife to go bankrupt first and myself a few months later. Would a few months gap help to avoid the Transferred Asset issue? In the meantime i could come to a temporary arrangement with my creditors to buy some time. The HP payments are £90 per month and it doesn’t improve the budget much. We have decided on bankruptcy.
Sara (Debt Camel) says
“I spoke to National Debtline who advised me that the car would become a transferred asset and could be called back by the OR and sold to raise money.” how much is the car worth at the moment? when did the HP start?
sunil depay says
car value was 7700 in May when we bought it. we did a part exchange and took out 4190 in finance. HP started in May2017. First HP payment was in July 2017
Sara (Debt Camel) says
So that is very recent and you had a large deposit so there is equity in it.
One option for the car may be to keep it and get your Sister in law to “buy” the equity from the Official Receiver and you carry on paying the HP payments. This would work unless the car finance company ends the contract before you have gone bankrupt. Some do, some don’t. National Debtline may be able to say what your car finance company would be likely to do. It also means you have to be able to afford the HP payments.
A much simpler approach would be to hand back the car and for your sister in law to buy a different car with the 4k and then let you drive that.
Delaying going bankrupt wouldn’t work – the OR can look at any transfer transactions going back a few years.
Debbie says
Hi. I think I’m about to b dismissed from work for misconduct. If that does not happen I can’t work there due to horrendous stress. I’ve 28k of debts and will need to go bankrupt as won’t have any money at all to pay anything.
Can I go bankrupt if I’ve in effect given up my job? Thank you
Sara (Debt Camel) says
Yes, bankruptcy is your legal right if you can’t pay your debts. There is no sort of moral judgement which says “well she could have paid her debts if she had carried on working so we won’t let her go bankrupt” – that doesn’t happen.
That doesn’t mean bankruptcy is necessarily the right option for you in this sort of situation. See https://debtcamel.co.uk/redundant-debts/ which looks at a similar sort of position.
Matthew Vidler says
My car has a logbook loan attached, is worthless and has died. I will surrender the car to the logbook loan company and include the debt in the BR. I need a car for work as the bus would take 2 hours each way. My father in law bought a car at the weekend for £5400 for me to use and registered it in my name so I could pay insurance and tax and upkeep etc. I won’t need to pay for it until I can. The receipt was made out to me by the dealer but paid with FIL card. I could prove the money was never in my account to pay for it but how would the OR view this? Many thanks
Sara (Debt Camel) says
That should be fine, get your father in law to write you a letter saying he is happy for you to use the car for a couple of years until you can afford to buy your own. This makes it clear he still owns the car and the fact that is was paid for with his card supports this.
David says
If I spend £650 on a cooker can the official reciever take it off me and make me replace it with something cheaper?
My argumment would be that it is my money so if I want to buy an expensive cooker then I will, and that I had expected that my creditors would except my full and final offers, which I think they will given the alternative of me going bankrupt and they then .
getting next to nothing.
Sara (Debt Camel) says
A £650 cooker would fetch very little second hand, so that isn’t likely to happen!
The problem with spending “too much” is that there is the potential for the ombudsman to decide that you had spent recklessly and so you should get a Bankruptcy Restriction Order. If you spent the money on a holiday or gambled it away for example. I think it’s unlikely the OR would do this if you have just spent a bit much on an oven but it can’t be completely ruled out.
But you may decide you don’t care if you do get a BRO – you may think it would make little or no difference to your life. See https://www.gov.uk/government/publications/bankruptcy-restrictions-orders-and-undertakings/bankruptcy-restrictions-orders-and-undertakings
David says
Hi, I bought a new moblile phone for £399 about a month ago and I was wondering if this would be taken by the reciever if I went bankrupt? Similarly if I bought a second hand playstation off Ebay would that be at risk?
Thanks
Sara (Debt Camel) says
As the article above says, you are only asked to list things on your bankruptcy application that are worth more than £500 – and that is their second-hand value. Neither of the items you suggest will need to be listed.
As we have discussed before, there is a potential for you getting a BRO if the OR thinks you have gone on a spending spree. But you may not care about this.
David says
Thanks Sara. I was worried because as soon as I recieved my money I took £450 out of the bank and used £399 of that to buy a phone. I guess I’m worried in case the reciever asks me where the £450 went as I would then be faced with the dilemma of whether or not to tell him that I used some of it to buy a phone.
Sara (Debt Camel) says
I know this all feels very worrying for you. But just be sensible and always tell the truth to the OR. Bankruptcy is a lot less scary in practice than most people think.
Margaret says
Hi debt camel
I have been advised to go bankrupt due to my mental health problems, I am no longer able to repay debts i accumulated last year, when studying, and living on a very low income a few years ago. I have OCD and depression and suffer from lapse of judgement. as part of this, I bought a boat on impulse with an ex boyfriend 2 years ago, but the boat turned out to be a disaster and i ended up handing it over to him, it had rust, almost sank, and i was completely ripped off by the seller. It probably comes across as ‘transaction at undervalue’ on paper, I gave it to him because I could no longer cope with how diabolical it was, so are they going to hound me/put me on some restriction or will they accept what I have to say? Really scared, can’t cope with the stress of this any longer and desperately trying to save up 680 fee.
Sara (Debt Camel) says
how large are your total debts now? And what do you think a realistic price for th evoat would have been , given its condition, when you gave your half to your ex?
Margaret says
Debts about 22k. Have been paying token payments.
Totally worthless, I don’t know where it is, I don’t want to know either, no money was exchanged, I ended up coughing up most of the financial part of it to try and have it repaired but at the start of the year I gave up and told him to put it in his name and deal with it. It was only a few months down the line I realised I could go bankrupt, I am so upset and worried that it will look like some kind of pre meditated decision or that I am trying to deceive the OR/whoever, when in reality I couldn’t cope with the stress of it anymore. I would say it was worth about 7-8k when I last looked at it, and the costs of trying to repair it would be double the amount.
Margaret says
I earn about 700 pounds a month, i have not used credit cards in 6 months, I have no valuable possessions or items and am no fixed abode.
Amethyst says
Hi, I claim ESA due to mental health (bipolar, PTSD) and fibromyalgia. Over the past 10 years I’ve racked up over £40k in debts due to impulsive and reckless spending. I’ve not yet missed a payment, although I dropped them to minimum now. However, a recent benefit change from DLA to PIP has caused a significant drop in income and I won’t be able to make the payments at the end of this month, so I’ve got no choice but to go bankrupt. Should I cancel all non-essential payments immediately and salvage as much money as I can?
I have a car worth around £1500 which is essential due to health issues. Without it I’d be totally housebound. Are they likely to take it as it’s worth over £1000? Also could they force me to part with my dog? Without him I have no reason to live. I recently bought a new mobile phone on credit (I have a SIM only contract) as the screen was smashed on my old one. Can they take that off me too?
I’m absolutely terrified of facing up to this and the stress is making me ill. I don’t know when the best time to do it is either….now? Or wait a couple of months. Could I draw cash off a credit card to pay the fee? And should I stock up on groceries and dog food in case they freeze my account?
Sara (Debt Camel) says
Hi Amethyst,
first, have you looked at whether you can appeal the reduction in your benefits? It may not be possible, but if you haven’t tried it, a lot of people do win cases on appeal. Talk to your local Citizens Advice.
Your car – are you sure of the value? Use Parkers Guide and go for the “poor condition” valuation.
The Official Receiver will have no interest at all in your dog. No question about that.
Your phone – what sort of credit is this on?
If you have never missed a payment to a debt, there is absolutely no need to rush into anything. You owe a lot of money and bankruptcy may be a good option for you, but there is no need to hurry. I suggest you talk to StepChange and they will help you look at what you can afford to pay, possibly set up a debt management plan for you (this could be good if you do want to appeal your PIP award) and also talk about bankruptcy.
In practice you could make low payments to all your debts for several years and you wouldn’t get a great deal of hassle from the creditors if you tell them your disability benefits have been cut, that you have mental health problems and you are offering them an amount every month. Things won’t be nearly as bad as you think so there is no need to panic.
EDIT – the car value was increased to £2000 in October 2021
Jim says
Hi, there’s some great responses in here from Debt Camel so I’ll add my questions.
I am considering bankruptcy as the final option. I am out of work and am in receipt of ESA, no money is paid for ESA due to my partners income and it only covers NI contributions. My income consists of PIP (care component only, no mobility) of around £220 per 4 weeks, Housing Benefit of around £60 per week and Working tax credit of around £80 per 4 weeks (working tax credit is still in my name from years ago), so around £540 per 4-weeks. My partners wages, child tax credit and child benefit are all paid in her name.
* Would the OR consider part of my partners wages as my income as it is because of this income I am not entitled to a monetary payment for ESA?
* Is PIP considered income. If so would the OR then consider the same amount as health expenses. Much of what PIP is used for is various therapies for a couple of months, then a few months off (as the amount doesn’t cover keeping these services running all year round), or would the OR count PIP as income and expect it to be used to pay towards an IPA/IPO?
Finally, I have a car registered in my name, the car belongs to my mum and we both have a signed letter stating that she has allowed me use of it, but she remains the legal owner. She also has the receipt for the car from when she purchased it around 7 years ago (I have had use of it since earlier this year and it is likely worth less than £1000 anyway).
* Although the car doesn’t belong to me, would the OR likely allow running expenses in the budget as (I feel at least) it is required for me to leave the house due to anxiety. The car is mainly used for getting me out, general family use (taking our children out, shops etc…) and picking my partner up from work as she often finishes past midnight?
I don’t own anything which cost over £500 when new, let alone second hand so shouldn’t have any concerns there, but I do feel that the loss of access to a car would negatively impact my health considerably.
Sara (Debt Camel) says
I am a bit confused by why you are getting WTC in your name and your partner who is working gets the CTC. Normally tax credits is a joint claim. If there is something odd here, it is best resolved before you go bankrupt just in case you owe any benefit overpayments that will then be included in your bankruptcy.
How large are your debts?
“Would the OR consider part of my partners wages as my income as it is because of this income I am not entitled to a monetary payment for ESA?” No. Bankruptcy looks at your income, not the household income. ESA looks at the household income. You are asked to give your partner’s income on your bankruptcy application, but this is so any household bills can be fairly divided between you.
“Is PIP considered income. If so would the OR then consider the same amount as health expenses. ” Yes and Yes.
“Although the car doesn’t belong to me, would the OR likely allow running expenses in the budget” probably, but in your case it sounds irrelevant as with your care expenses being included because of your PIP you won’t have any spare income anyway.
EDIT – the car value was increased to £2000 in October 2021
Lyn says
We have a holiday home in Bulgaria will we be forced to sell it if we go bankrupt
Sara (Debt Camel) says
Basically yes. It is very likely you would be asked to sell it. It is not your personal residence so there is no limit on the length of time this can take.
The Official Receiver tends to take a pragmatic view that forcing someone to sell a property abroad can be expensive and time-consuming, so a reasonable offer from someone (another member of your family?) to buy out your equity in the property would be likely to be accepted. This could be based on a low valuation of what the property would fetch in a forced sale and the costs of such a sale (legal fees etc) could also be taken off.
Lyn says
would they find out if we didnt tell them
Sara (Debt Camel) says
a) it’s a criminal offence to conceal an asset deliberately
b) how likely they are to find out may depend on whether there are any transactions on your bank statements relating to the house.
Babs says
Hi,
Is anyone able to offer some advice or guidance.
My now husband was made bankrupt by HMRC is 2014 for a debt of £35k.
Stupidly he did not cooperate with his OR and just assumed they would put a charge on our property.
We haven’t heard anything of his OR for nearly five years.
We now reside in Australia and have done since 2014.
We rent our house out in the UK and the tenant received a letter last week from an insolvency practitioner to say that they are taking control of my husband assets, including the house.
I don’t know if they know that the house is joint owned.
We don’t really have any assets in Australia as we rent – so it’ll just be the car and any excess salary.
I’m beside myself with worry.
He will contact the IP on Monday to discuss.
Do anyone have any idea of this process?
Sara (Debt Camel) says
The Trustee has three years to realise any money from “the family home”. But this house is not your family home because you are not living in it. So there is no time limit on this – your husband’s half of the house transferred to the Trustee when he was made bankrupt.
The Trustee can tell from the land registry that the house is jointly owned. Your half of the equity will be returned to you after the sale of the house.
Do you know how much equity there is in the house at the moment?
Maria says
Hi again. My partner has bought a car for me to use for work as my old car is a hire purchase and will be taken away once I go bankrupt.
Can my partner put me down as the registered keeper on the V5 if he is the owner?
How will this affect the bankruptcy?
Thank you
Sara (Debt Camel) says
yes you can be the registered keeper for a car that is owned by someone else.
This will not be affected by your bankruptcy as you do not own this car, but you will need to produce proof that it was bought by your partner.
James says
Hi,
I’m 15,000 in debt, considering bankruptcy. My wages are 1000 per month, but I live with my parents and am single. Although I pay board, and 200 a week on fuel/car insurance. Would I have much threat of a payment order, given my low wages, or would they just think I shouldn’t need much to live on. Thanks.
James
Sara (Debt Camel) says
Did you mean 200 a week or a month?
Chris says
Hi, i am in the process of making a decision about going bankrupt. I owe close to 55k.
I have 1 asset worth £4k (car) which i need for work and i have numerous other assets like TVs and Games console that second hand wouldn’t be worth more than £250 each.
Would these assets be taken and sold?
any guidence would be helpful as most of what i read say if they total a £1000 they would be sold.
thanks
Chris..
Sara (Debt Camel) says
The bankruptcy application says you only have to list items that are worth more than £500 – apart from your car it doesn’t sound as though any of your other possessions are at risk.
But your car is at risk. I suggest you talk to a debt adviser, first to confirm that bankruptcy is a sensible option for you and second to talk about your options for the car. Phone National Debtline on 0808 808 4000.
David says
Hi,
I have 15k debt, entered an Iva about three years ago. Experienced difficult times prior to Iva. Couldn’t meet payments, only several if that. Only earn £1550 just living basic and two children is a struggle to maintain. I rarely have disposable income. What happens to Iva? I’m just about holding my job down and covering just living costs!! Now fearing the worst. I have nothing worth £200 let alone £500.
Sara (Debt Camel) says
So you haven’t been making the IVA payments? How many have you missed? Has your IVA firm said yiu are in breach and it will fail your IVA?
Gemma says
I became bankrupt in July. I have a 3 year savings plan with work which has £600 saved at present. I did declare this to my OR and he said that because there wasnt over 500 (there wasnt at that time) it would remain open. After my car gave up I tried to cash this out early to buy a run around but saw that the OR is listed as the payee . My question is.. if i leave this running for the course of the plan, another 2 years. Will the OR still take it? If so I would be better cutting my losses and cashing out now and save money under the mattress…
Sara (Debt Camel) says
I don’t know, I think you should ask the OR this. There is obviously no point in saving money for the OR to nab…
Steven Foster says
They told me I wasn’t allowed to put money aside or save as this is classes as disposable income, they basically tell me out to spend my budget, until discharged they are allowed 100% of any savings bonuses etc
Gemma says
What about after discharge though? The saving plan would continue for 2 years after discharge, would they Still get it if I let the plan run to the end?
Sara (Debt Camel) says
I don’t know why the OR took the decision thye did at the start of your bankruptcy. You need to talk to the OR about what you should do. other people make general points about savings in bankruptcy will not help you, you have an unusual situation.
AB says
Hi I’m looking for advice on behalf of my mum. She was made bankrupt in July 2016 and has received a letter today from an Insolvency company to say they have looked backed into her joint account with her husband and noticed that money has been sent to family members in 2014 & 2015 over £5,000. This money was mostly inherited as my grandparents passed away which was sent from my dad to me and my brother. My other grandma also sent my parents some money each month to live on as they were struggling financially which totalled to less then £1,500. We are totally confused by the letter as we were not aware they could raise these payments as an issue. My mum was not aware at the time that she was going to be made bankrupt 2 years later. Her affairs were looked at when she went bankrupt 3 years ago and nothing was mentioned after her bank accounts were looked into before. Thank you
Sara (Debt Camel) says
Who made your mum bankrupt and for what sort of debt? Had her financial affairs got worse over the previous two years?
The money that was inherited, this came from your dad’s parents or your mum’s parents?
Your mother would have been interviwed by the Official Receiver, was the subject of these transfers discussed?
Amber says
Hi I’m looking for some advise before applying for bankruptcy about how the OR may view my circumstances and whether I’m likely to get a bankruptcy restriction order.
1) I read you can get a restriction order if you are to blame for your bankruptcy. What does this mean in reality? Of course I’m to blame, they’re my debts?
2) My other half has spent the odd fiver here and there on football bets. Will this gambling so against me or does it have to be more extreme than that? Gambling isn’t the reason for my debts
3) What happens when the OR sees large-ish transations in my bank accounts? January 2019 I spent 600 on a gift, then 700 on a holiday in April 2019 but I was working full-time at the time of the purchased and wasn’t behind with any of my debts then
4) I’ve been on a DMP for the past few months. I’m only now turning to bankruptcy because I’m not longer in work but does it look bad that I’ve basically failed in my DMP?
5) My previous job was made me depressed. My GP prescribed me medication and kept offering me sick notes it got so bad. I handed my notice in and thought I had another job lined up but that fell through. Finding something else has been much harder than I expected so I’m now claiming benefits. Will I be penalised for leaving my last job?
Sorry for the lengthy message. I really appreciate any insight you can provide. My total debt is around £30K if that is useful at all.
Many thanks,
Amber
Sara (Debt Camel) says
1) I think the easiest way to set your mind at rest about BROs is to look at some of the recent ones that have been imposed: https://www.insolvencydirect.bis.gov.uk/IESdatabase/viewbrobrusummary-new.asp. As you can see there, they are NOT used when someone just got into too much debt to manage. Many of them are for people who have run up very large tax debts fro their self-employed business. Others are where someone did something fundamentally dishonest like giving away a large amount of money or a car.
2) nothing you other half does can get you a BRO. And if you spent the odd fiver on football bets that wouldn’t matter either. This has to be a large enough sum to have really caused a lot of your problems. Here is an example of a BRO for gambling: “Between 23 May 2018 and 4 June 2018, whilst unemployed, X obtained additional credit from four unsecured loans totalling £68,500 which she had no reasonable expectation of repaying and which resulted in her insolvency. She states she spent the funds on gambling.”
3) if you were managing all your debts well when you gave a large gift and went on that holiday, I would be surprised if the OR is at all interested.
4) No. it’s good to try to repay your debts in a DMP. But if that wasn’t going to repay them in a reasonable length of time, that is what bankruptcy is there for.
5) No. You will not get criticised for that.
Have you taken any advice on bankruptcy? I think you should talk to National debtline on 0808 808 4000 – they can check it is your best option and perhaps put your mind at rest. because none of the things you have mentioned sound to me like they will be a problem for you. But it would be good to talk through your case in detail with an expert but sympathetic ear.
Amber says
Thank you for taking the time to reply to all my questions, I really appreciate it. I will also speak to National Debtline.
Best wishes,
Amber
Jayne says
Hi
I have been struggling to keep my head above water for a while now, using credit cards for everyday living.
With the current situation and losing my income I took advice from step change and national debt line, they both recommended bankruptcy.
I don’t have anything of any value but have the governments help to save saving account. It has £1200 in and I was wondering if they will take it. I don’t have an overdraft and since losing my job will be on universal credit. Should I withdraw the savings?
Thanks
Sara (Debt Camel) says
Will you need that money to pay the bankruptcy fees?
Do you have any rent arrears?
Have you just applied for Universal Credit or is it currently being paid?
Jayne says
Hi Sara
I am currently being paid universal credit as it has been bumping my income up.
I have no rent, water, gas, electricity or council tax arrears. I have a family member who said they will pay my bankruptcy if I don’t lose the savings, if I will lose it I may as well pay it from them.
Thanks
Jayne
Sara (Debt Camel) says
Yes you will lose them I am afarid. So it is better to take the money out and use that to pay your bankruptcy fees.
Jayne Robertson says
Thank you.
Will I have to keep a record of what I spent it on?
Sara (Debt Camel) says
You don’t have to run your bank account down to absolute zero. You can have a couple of hundred in there. And a bit in cash. If you buy anything big eg a washing machine or a new mattress, I suggest you keep the receipts. If you aren’t sure, then go back and chat to National Debtline again.
Steven Foster says
Hi Sara
When discharged from bankruptcy and the debt supposedly gets written off, how long does that debt stay on credit file for
Sara (Debt Camel) says
The debt should be marked as defaulted not later than when you went bankrupt. It will drop off your record completely 6 years after the default date.
It will also be marked as partially satisfied the date you are discharged.
See https://debtcamel.co.uk/credit-file-after-bankruptcy/ for details.
Natasha says
Hi there ,
I’m currently having to take the option of bankruptcy because of council tax arrears & inland revenue fines which equate to 20,000
My engine went on car so I submitted back to log book loan company .
So I’m without car which I need one because I suffer with anxiety and panic attacks & back issues so I can’t be on busses without the risk of this .
My dad has been kind enough to offer to get a small loan to get me a vehicle to the value of 5,000 so I know it’s safe and reliable .
Would it be best to keep it in his name and me a named driver ? If I put it in my name it’s classed as my asset even though paid for via loan in his name ?
Could you advise best way to do this as getting a vehicle is important . Do I wait u TIL my bankruptcy application has been accepted?
Sara (Debt Camel) says
In general if the car is bought by your dad it is his property not yours. The fact he lets your drive/insure it is irrelevant. It doesn’t matter that he had to take a loan for it. And it doesn’t matter if he buys the car before or after bankruptcy.
But you need to take some general advice on bankruptcy and this would be best before getting the car – do you have any other options? will the car running expenses be allowable in bankruptcy? also if you have a small business the implications for that.
I suggest you talk to National Debtline on 0808 808 4000. Or if you have been self-employed, talk to Business Debtline on 0800 197 6026.
Kate says
Hi. Been 3 months since i got declared bankrupt . So still 9 months to go . I just won tv in a competition which is worth around £1700. Should i inform my insolvency officer about it . I would like to keep tv . Please let me know
Its brand new but have not received this yet . I would say worth more than £1000 second hand
Sara (Debt Camel) says
in that case I am afraid you need to tell your OR who may claim the TV :(
kate says
So its gonna be the same with all winnings over £1000? Like designer clothes , bags ?
Sara (Debt Camel) says
yup… how often do you win this stuff?
Kate says
First time I won anything but take Part in a lot of competitions Online. So whats the rule ? What value Of the prize i dont have to inform the insolvency officer ?
Sara (Debt Camel) says
anything with a second hand value of under £500
Jayne says
I have just filled in the bankruptcy form and put all my accounts down. Just wondering if I add my child’s (under 16 so I am the trustee) ISA account. Also will the OR take her savings? I have encouraged her to do little chores and save the money, plus she puts in birthday and Christmas money off family.
Thanks
Sara (Debt Camel) says
no you don’t need to list this and the OR will not take the money
(NB I am assuming you haven’t recently transferred a large amount of money into that account!)
Jayne says
Thanks Sara,
No I haven’t paid any large amounts in, just £10 a week.
Kate says
Hi. Wanted to ask a question ., hard times now and i might be redundant at work .. still 9 months of Bankruptcy left ..been with company 7 years so might get Redundancy payment .. what happen to this money if get them before Bankruptcy finish ?
Sara (Debt Camel) says
This article looks at your situation: https://debtcamel.co.uk/or-redundancy-money/
Kate says
Hi Sara .. so it means if it happens now I will be left without any income and money for living .. is that right ? I will get nothing from Redundancy ?
Sara (Debt Camel) says
That page gives the what the Offical Receiver normally does. You will be able to apply for benefits of course. I wonder whether you could try asking if you can keep 1 months pay from the redundancy to cover the 5 week gap before you can get Universal Credit… but look into this nearer the time?
may says
Ok, do they tend to repossess his household items if he did ever change his mind to file bankruptcy. He literally had nothing valuable but worried they will come and reposses the little things he has. Sofa, TV, computer, washer, dryer, fridge. Things of that sort is probably another reason why he has put him off from considering bkrptcy. Thanks for all your help today. We will see what they say tomorrow. My husbands next concern is if they make him pay more each month will they also change the amount he will need to pay for the life of the IVA. His total debts amount to 18k but the IVA contract says 100 per month to pay off 6k and rest will wash off.
Sara (Debt Camel) says
It is rare for anything to be taken in bankruptcy except a house with equity or a car worth over a couple of thousand. Normal household goods are ignored – which is all the things you have mentioned unless they are unusually expensive eg a pretty new large American-style double fridge-freezer. You don’t have to list anything on your bankruptcy application unless its second-hand value is more than £500.
As his debts were under 20k, it is possible he may qualify for a Debt Relief Order rather than bankruptcy. But see what his IVA firm comes back and says…
may says
Ok great thanks for the advice. Really appreciate it.
Jeb says
I’m considering bankruptcy, owe £40K and overwhelmed by debt,. I’m in contact with Business Debtline as classed as self-employed. I live full-time in a touring caravan – pay monthly pitch rent – and this is my only home. Trying to get a valuation but suspect it will be worth around £3-4000. My question is will the OR seize the caravan as an asset, effectively leaving me homeless. I also have a car worth less than £500.
Sara (Debt Camel) says
This would normally be classed as an asset and sold. If Business Debtline confirm this, then one option is for you to sell it now and use the money as a deposit and first months rent on a place. And moving expense, buy any necessary furniture and pay your bankruptcy fees. Then go bankrupt.
Jeb says
Hi Sara, thank you for your reply. Would the OR not consider this as benefitting from a sale of the caravan and therefore would expect me to pay monies toward debts?
Sara (Debt Camel) says
The OR will understand that you have to have so where to live! Talk to Business Debtline about this.
Amanda says
Hi
My husband has just been declared bankrupt . Will the OR visit our home ?
I have nothing of value , but do have 2 large tv and a PS4 which the grandkids use.
Would they be able to take his golf clubs ?
Many thanks
Sara (Debt Camel) says
No one visits your home.
Did he go bankrupt or did a creditor make him bankrupt?
Amanda says
He went through step change for advise first and unfortunately his only option was to declare himself bankrupt
Thanks for answering so quickly we’ve both been sick with worry and his initial interview with the OR yesterday was a right grilling.
Sara (Debt Camel) says
I am glad he had advice on going bankrupt. You can feel sure that even if this seems rough at the moment, it is then the best option for him.
On his aplication under “assets” he should have listed anything he owns thatare worth more than £500.
That is the secondhand amount, not what something originally cost. As the application says “It’s very unlikely that items you need for your daily life (eg washing machine, sofa, refrigerator) will be sold.”
He only needed to list his possessions, not yours.
Second hand TVs and games consoles normally aren’t worth much!
I have no idea what the second hand value of golf clubs is.
Rebecca says
Hi, I’m thinking of going bankrupt, I left an abusive relationship 1 year ago and was left with all the debts as my ex couldn’t take out credit and it was my responsibility to make sure we had money when he spent it so when he asked me to take out loans I just did :( stupid I know, so now I’m stuck with 50k debt.
I live in a hamlet in the middle of nowhere and I’m really struggling to see a way out other than bankruptcy, I have a car that’s worth around £3590 I know there have been rare cases where cars haven’t been sold depending on circumstances, a local taxi would be £50 per day to get to work with is 25 miles away, I’d also have to pick up drop off kids, etc from school, and after school activities which are again 25+ miles away. Our nearest shop is a 6-mile round trip, and the nearest supermarket is 30 miles away. I would really really struggle without a car for even a short period of time, so this really scares me.
I’m also really struggling to get the bankruptcy fee together – I’ve applied to a few charities but all declined as they are being over subscribed atm. Just received another debt scare letter that I didn’t even know existed for some car fines and I really don’t know what to do, it just keeps mounting up.
Sara (Debt Camel) says
Can I suggest you contact the Financial Support Line for Victims of Domestic Abuse, see
https://survivingeconomicabuse.org/what-we-do/financial-support-line/
Jax says
Hi. My parents bought a car for £5000 they own the car and are down as the owners. But I drive the vehicle. Will this still be able to happen when I file for bankruptcy? Or will the official receiver try take the car? Even though they have proof it’s owned by family? I’m also the only person insured on the vehicle. I’m also a registered keeper on it
Sara (Debt Camel) says
“they own the car and are down as the owners”
where are they “down as the owners” if you are the registered keeper?
NB I am not disputing that they own it and it may well not be a problem in bankruptcy, I am just trying to get the full picture.
Jax says
Hi, apologies they paid for the vehicle in cash and they own it with receipts. I’m not down as a registered keeper but I drive the car all the time. Its effectively mine and was an idea of how to have a vehicle and be able to get round this issue with bankruptcy and not actually having a car.
Sara (Debt Camel) says
So they are the registered keeper?
Jax says
Yes and paid for the car. I drive the vehicle its pretty much mine but all in there name
Sara (Debt Camel) says
Then this is very unlikely to be an issue. HAve you taken advice on bankruptcy? However obvious you think this is, it is always worth an hour of your time to talk to a debt adviser about this – I suggest you phone National Debtline on 0808 808 4000.
Lisa says
My partner went bankrupt in April 2022 – he bought me an eternity ring (we are not married) back in December 2021 which was expensive and the OR wants to know what the expenditure on his bank account was for. Will I have to give up the ring? We do live together but have never been married – the ring was to celebrate 30 years together?
Sara (Debt Camel) says
Were his finances already very bad in December 21 or were they OK then and then something went very wrong in early 2022?
how expensive are we talking about?
Deborah says
Hi
I am considering going bankrupt
My concern is my car which is valued at £25, 000 balance on HP £10,000 for the next 27 monthly payments
I work part time and not able to use public transport as there is no public transport direct to my work which is 12 miles away from my house
I would need to take two buses and I work very late in the evening
I also have a very severe mentally ill son who is back in hospital under section
I have the paper work in my sons name and is under my home address once he is discharged from hospital he will live with me
I need the car as I care for him twice a week sometimes three times a week this helps him to recover when he comes home
I collect him , take him out and return him
He is not able to cross roads, as he can become catatonic very quickly . He is not able to take public transport due to crowds
There is no point in taking a mobility car as I still have to
Pay monthly payments for many years
By keeping my car and paying the monthly payments this will be paid off in 27 months
It’s very important that I continue to bring my son home which is part of his recovery
Would the OR understand that I would need to keep the car for my mentally disabled son
I’m sure the finance company would let me keep the car as I have paid over half off and will continue to make monthly payments
I am so stressed and worried they will not let me keep the car
Sara (Debt Camel) says
Can you say some more about the rest of your situation? How large are your debts? Any arrears on priority bills?
What disability benefits does your son get?
Was this car new when you bought it? Is it really worth 25k when the balance on the HP is only 10k?