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sunshinecity
Starting Member
1 Posts |
 Posted - 04 July 2012 : 18:51:28
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I am considering declaring myself bankrupt, but i have several questions. What does the OR class as assets? We rent our home, the (very cheap) car is in my husband's name, the only things we have are furniture, white goods, clothes etc which i understand are exempt, but what about all the other stuff like wedding/engagement rings, TV, computer (which i use for work), kids games consoles, kids DVD's etc.
I started my own business last year, which hasn't really taken off yet cos I spend so much time dealing with debts and researching options, however I have purchased equipment and some supplies which i still hold as stock. Will that be taken as an asset or will I be allowed to keep it so I can continue to trade?
Is there somewhere I can find out what are classed as "reasonable living expenses"? My household budget currently includes payments for my kids activities, like swimming lessons, gymnastics etc - this could be crucial in determining whether or not i have to have an IPA.
Thanks |
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debtinfo
forum expert
2826 Posts |
Posted - 04 July 2012 : 19:07:56
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Hi sunshine city, It is for the OR to decide what is and is not an asset so there is no conclusive list, there are many grey areas but in general.
From what you have put, Furniture, white goods, clothes, wedding/engagement rings, TV, computer, kids games consoles, kids DVD's are generally exempt as long as they are for your own household and are not excessive in both number and value. So for instance if you have 1 or 2 normal TV's thats fine, if you had 20 TV's that would not, again a kitchen table is fine, an antique 15th century table wouldnt be. Rings of modest value are ok, a £10,000 ring wouldnt be. If you are in any doubt you should declare it and the OR will make a decision, as they always point out they amke the decision not the bankrupt.
Cars are a little different, the primary reason it being an asset in the first instance is what it is used for not the price. So if it is necessary for the owner of the vehicle work then it should be exempt.
Business assets are another catagory entirely, stock will be an asset, which means the OR has the option of selling it, although that can be back to you of course. (ie somethings dont have a lot of value on the open second hand market, so it is more cost effective to sell back to the bankrupt at reasonable price)
Tools of trade are exempt although of course the reasonable value clause comes up again. Tools of trade dont include furnishings, vehicles, properties or stock.
As for your expenses, they are individual to a person, all the law says is that an IPA should not reduce your living standards below a reasonable level, so you should just put everything that you usually spend money on down, (dont leave anything out becaause someone says it might not be accepted) and see which ones get knocked back and if necessary plead your case as to why you think they are reasonable |
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I am considering declaring myself bankrupt, but I have several questions
