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.