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eldraque
Junior Member
191 Posts |
 Posted - 10 February 2008 : 11:11:57
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| I have a van on finance which i need for my job, if i declare myself bankrupt could i continue to pay for this van on finance as its essential for my job or would that be seen as favouring 1 creditor over others?. my debts are roughly £60,000, my earnings are between £400-£600 per week the van costs £210 per month.... |
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Johnny Debt
Junior Member
United Kingdom
265 Posts |
Posted - 12 February 2008 : 09:03:35
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I would firstly suggest that you get as much information as you can, before you decide to go the bankruptcy route.
The Official Receiver has an enquiry line 02072 916895, you may want to give them a call to see what their take is on this?
Your assets
You will no longer control your assets.
You can keep the following items unless their individual value is more than the cost of a reasonable replacement:
* tools, books, vehicles and other items of equipment which you need to use personally in your employment, business or vocation;
* clothing, bedding, furniture, household equipment and other basic items you and your family need in the home.
All these items must be disclosed to the Official Receiver who will then decide whether you can can keep them.
The Official Receiver/trustee will take control of all your other assets on the making of the bankruptcy order. He or she, or any insolvency practitioner who is appointed as trustee, will dispose of them and use the money to pay the fees, costs and expenses of the bankruptcy and then your creditors. If appointed, the insolvency practitioner's fees for acting a trustee are also paid from the money raised by selling your assets.
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eldraque
Junior Member
191 Posts |
Posted - 12 February 2008 : 09:31:14
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quote:
Originally posted by Johnny Debt
I would firstly suggest that you get as much information as you can, before you decide to go the bankruptcy route.
The Official Receiver has an enquiry line 02072 916895, you may want to give them a call to see what their take is on this?
Your assets
You will no longer control your assets.
You can keep the following items unless their individual value is more than the cost of a reasonable replacement:
* tools, books, vehicles and other items of equipment which you need to use personally in your employment, business or vocation;
* clothing, bedding, furniture, household equipment and other basic items you and your family need in the home.
All these items must be disclosed to the Official Receiver who will then decide whether you can can keep them.
The Official Receiver/trustee will take control of all your other assets on the making of the bankruptcy order. He or she, or any insolvency practitioner who is appointed as trustee, will dispose of them and use the money to pay the fees, costs and expenses of the bankruptcy and then your creditors. If appointed, the insolvency practitioner's fees for acting a trustee are also paid from the money raised by selling your assets.
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eldraque
Junior Member
191 Posts |
Posted - 12 February 2008 : 09:37:00
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| I have read extensively into the subject and as i have no assets what so ever bankruptcy seemed the most logical solution. I simply wondered if i would still be permitted to pay for this van on finance after bankruptcy. I know that if i owned the van and needed it for work they would be unlikely to seize it, but as i dont own the van but pay for it on finance im not sure what the position might be, any ideas johnny debt..... |
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chris.g
Junior Member
United Kingdom
211 Posts |
Posted - 19 February 2008 : 10:26:46
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What type of agreement is the finance on the van? Might it be possible to include the finance on the van into the bankruptcy and still keep the van? I had a car on finance, I assumed it was HP but it turned out it was a fixed sum loan, I sold my car and bought a cheaper one, we declared ourselves bankrupt last week and we included the loan on the list of debts. I would check your agreement and look into it.... |
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eldraque
Junior Member
191 Posts |
Posted - 19 February 2008 : 18:59:56
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| Its a contract lease, im not sure if it involves a loan of any kind. As i dont actually own the van yet it cannot be classed as an asset i was hoping that the cost of the van(essential for work) might count towards my living expenses when the O.R decides how much spare income i might have to pay towards an ipa. presumably no matter wether thats the case or not theres nothing to stop me just carrying on paying for the van from any new account i set up after BR, if its not included in my living expenses then thats just tough for me i suppose. I dont care as long as i dont lose it. |
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sphere
Junior Member
172 Posts |
Posted - 19 February 2008 : 22:55:08
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Sorry to suggest this but if you read the lease small print it probably states that if you declare BR the contract is in-effect cancelled and you will need to hand the van back as it still the finance companies property. We had this situation with one of our cars and we were told by the OR to hand it back and any difference between the value and the finance is just added to the creditor list. You could buy another van before going BR and then you could claim this as essential for your work.
If you brought it on HP not directly attached to the van eg general loan, this would then just be another debt and you may be able to claim the van as essential, dependent upon value, I had a 4x4 pick up but is was worth over 10K and was seized. Also doing this may be deemed as "blameworthy" by the OR Examiner and then this may result in a BRU or BRO of at least 3 years and up to 15 years dependent upon your actions prior to going BR. They normally look up to two years previous.
Sorry to go on but there is a lot to consider, we had over 200K unsecured debt if you plan very carefully you can make the process a little better only a little through. All the best. |
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eldraque
Junior Member
191 Posts |
Posted - 20 February 2008 : 17:46:11
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That dosent sound to good sphere, perhaps i'll see if the company is willing to transfer the finance into somebody else's name before i go BR, its certainly not in their interests to have the van back considering the miles i clock up every week, im sure we can come to some mutually beneficial arrangement, well at least i hope we can. As for being blameworthy im afraid im certain to get a BRU, its just a matter of how long that will be. Incidentally that leads me on to a further question i have if anyone can help. Q. If you were hit with a BRU/BRO say for 3 years or whatever, does this mean that your OR can impose an IPA/IPO at any time during that 3 years?, or is an IPA/IPO restricted to say the first year of your bankruptcy?.
Ive had conflicting answers on this question so if anybody knows the definitive answer then please tell me....... |
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sphere
Junior Member
172 Posts |
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van finance
