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lendmeafiver
Starting Member
3 Posts |
 Posted - 26 October 2009 : 23:34:14
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| I am a mechanic who is about to go BR. I understand that the OR cannot touch my tools, but I have a finance agreement for some i am currently paying off. What happens in this situation? |
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debtinfo
forum expert
2826 Posts |
Posted - 27 October 2009 : 07:18:04
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| The OR can take your tools, they are assets in he bankruptcy. The OR MAY choose to exempt them depending on cost and perceived need. If you have tools on HP then it is down to the finance company if the finance is more than their resale value |
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In 2 Deep
Junior Member
United Kingdom
161 Posts |
Posted - 27 October 2009 : 09:37:25
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Hi there,
Is the agreement covering the tools an Hire Purchase (HP)?
If you can prove to the OR that your tools are needed for you to earn an income, then you will be ok.
If the tool are on HP, then in effect the loan is secured on the tools and if you continue to make payments as per the HP agreement you should be able to retain the tools. Please make sure their is no BR clause in your credit agreement.
quote:
Originally posted by lendmeafiver
I am a mechanic who is about to go BR. I understand that the OR cannot touch my tools, but I have a finance agreement for some i am currently paying off. What happens in this situation?
Treat EVERY Penny as a prisoner. |
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Niobe
Administrator
United Kingdom
4590 Posts |
Posted - 27 October 2009 : 11:59:04
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I was always under the impression that the tools of your trade could not be touched.
Otherwise, how are you going to earn a living?
The glimmer gets brighter all the time
Jan
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gettingoutofdebt
forum expert
2418 Posts |
Posted - 27 October 2009 : 12:29:41
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The OR's Technical Manual mentions
quote:
30.29 Items necessary for use in employment
The legislation provides that ‘such tools, books, vehicles and other items of equipment’ are exempt from bankruptcy on the grounds that they are necessary to the bankrupt for use personally in his/her employment, business or vocation. This is most likely to be hand tools such as that used by a builder or plumber.
So the tools should be exempt provided that you are going to continue working as a mechanic.
If you are including the finance of the tools in your BR then the finance company will be able to take them back. |
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I am a mechanic who is about to go BR.
