Hi all I'm about to declare myself bankrupt and have a car worth £2000 which i use to get to work. I'm to use a bankruptcy agent to do the stuff for me and they say if the car is worth more than £1300 then it will be sold. I've read that the figure may be £2,500 before it can be considered an asset. I'm now struggling as what to do, this is my only means of transport to work i still owe money on the car through a fixed sum loan agreement and i assume i can sell the car to raise money for fees. Can anyone clarify the maximum value of a vehicle before it is considered an asset by the OR please. Thanks.
Hi Johc The figure is £2500, and the OR takes into account your need for it if you use it for work. I will let one of the other experts advise you on the money owing on the car - one will be along soon. It may be worth getting an up to date valuation for the car from Parkers or Autotrader online - using th elowest value it may be worth less than you think! Good luck - hold on for an expert!
Vicki is indeed correct that the trigger value for the OR is currently £2500. Was the finance on the car HP or a personal loan? If it is HP, then it is classified as secured borrowing and therefore excluded from bankruptcy as a non-saleable asset.
Thanks for the replies, the car was purchased with a fixed sum loan agreement (personal loan according to Experian after checking history). I believe this is not classed as HP. I'm not able to pay any more installments and would like to sell it and raise some money for court fees.
maximum value before car is considered an asset ?
Posted - 28 May 2008 : 23:34:00
