Scottish and English debt laws are different, so if you are a Scottish resident and have questions on debt, then this is the place to post.

Moderators: TalbotWoods, JaneClack

ByAnnabel
#50059 Hi, wonder if anyone can help? Can you continue to pay car insurance by monthly installments while bankrupt or in a trust deed? Or is it seen as having credit? :?

Any comments appreciated, I have been wondering about this.

Thanks :)
ByJLP
#50400 Well its an ongoing liability, so you can continue to have it.However as most Car Insurance Direct Debits are covered under the Consumer Credit Act, you would have to divulge to the Insurance Company that you are Bankrupt (if your premium is over £250), so it would be up to them if they would allow you to pay it monthly.
ByGR
#50497 When I was involved in a TD I continued to pay my car insurance, home insurance, telephone, gas & electricity monthly. i said nothing and these companies never challenged me as they continued to receive their payments on time.

If you have no intention of falling into arrears with these companies, I can't see a problem.
ByAnnabel
#50614 Thanks for the advice :)
Bykiltedscot
#50820 I too pay my car insurance monthly , I told my trustee i paid it monthly and they were fine with it, it is treated as an expense in my I&E statement.
ByJLP
#51071 Its not a problem to pay it monthly if you are in a Trust Deed at all.Its in Bankruptcy that it MAY become a problem as some companies use the Consumer Credit Act-AA does this.However some companies just use their own in house system so that wouldnt be a problem.
ByAnnabel
#51192 Hi, thanks for the replies. :)

JLP is it okay to pay it monthly while in a protected trust deed? I thought a protected trust deed was informal bankruptcy?
ByGR
#51218
Annabel wrote:JLP is it okay to pay it monthly while in a protected trust deed? I thought a protected trust deed was informal bankruptcy?


Yes, it is.
ByJLP
#51418
Annabel wrote:Hi, thanks for the replies. :)

JLP is it okay to pay it monthly while in a protected trust deed? I thought a protected trust deed was informal bankruptcy?


Yes thats no problem-its only in Bankruptcy that it may really crop up......... :D .People have Mortgages in Trust Deeds so its fine.
ByAnnabel
#51662 Thanks :)
Who is online

Users browsing this forum: Google [Bot] and 1 guest