Questions you have before making a decision to go Bankrupt and the Bankruptcy process

Moderators: TalbotWoods, JaneClack

By Charley
#1381 I have been told by the CAB that I need to go bankrupt as soon as I get the money together. My problem is that I dont have ANY money!

I do have a motorbike, which I got a loan for, can I sell it to get the £450 I need, or is that breaking some law?

Are loans different to HP.....I always thought something on a loan you can sell, but HP you cant?

I dont want to ask family for the money, as I already feel like the scum of the earth.

Thanks
User avatar
By Nicky
#1383 If the motorbike is on HP, then you cannot sell it as it isnt legally yours to sell. If you got a loan as in bank loan, and used the money to buy a motorbike, then that is different, you can sell it as the loan is unsecured.
By Charley
#1384 How will I be able to tell if it was HP..would it be on the paper work, what should I be looking for?

I dont care if its not the done thing...just that its not a criminal offence!
User avatar
By Nicky
#1385 Normally, when you purchase on HP, you go to the dealer, and sign an agreement which also shows your monthly repayments. Dealer as in who you are buying the bike from. If this is not the case, and you took a bank loan or a loan for any purpose from another company but used the money to buy a bike, then the bike is not on HP.

It is illegal to sell a product which is on HP. If you explain how you bought the bike and who you got the loan from, this should tell us if the money was finance for the bike, or just a loan you took and and used the money to buy a bike.
By Charley
#1389 The loan was with Black horse Ltd, rider loan. The document shows my details, details of supplier ie bike shop, and details of the bike, and finance details.

Hope this helps.

Thank you
ByDavidc
#1390
Charley wrote:The loan was with Black horse Ltd, rider loan. The document shows my details, details of supplier ie bike shop, and details of the bike, and finance details.

Hope this helps.

Thank you


Charley,
The odds are it is going to be a personal loan. I am 99% sure of that anyway but you have to have a good read of the agreement if it is HP it will clearly state it on the agreement. you need to be 100% sure as if not it is illegal for you to sell it and using the bankrupcy route it is going to be found out. If I were you I would phone Black Horse first thing on Monday morning and simply ask them. Agreement no.... Can you tell me if this is a personal loan or an HP agreement ?...You do not have to say why you want to know , perhaps you are thinking of getting another bike? They will probably offer to lend you more money. Which of course you can't accept as you know you are insolvent.....
David
By keepchinup
#1393 Hi,

I believe the court has the power to waive their own fees in some circumstances, mainly to those on benefits. That accounts for £140 of the £450 you need.

Just thought you'd like to know. Always get advice before going bankrupt. Most insolvency practitioners will give you an hour of their time free-of-charge if you ask. You can find them in the yellow pages of by doing a google.

Good luck.
By Charley
#1418 I have phoned BH today, saying that I was taking out a consolidation loan!

The bike is not on HP, and her words were they cant repossess the bike, it is a loan, that is secured on the bike, so if I sell the bike, I have to pay them back. They dont want the bike back.

I also cant get the £140 off, as we are not on benefits and my husband now supports me. But I will try for it when I do go B

What do any of you think now?

Thanks
By Charley
#1470 Also, how does the BO affect my husband? Would I have to include his income?

We have always kept our money apart, and I pay some bills, and he pays others.
User avatar
By JaneClack
#1500 No, you do not have to include his income. It is your bankruptcy and why should another person pay your debts? The Official Receiver will want you to include his income as it would make a better surplus income but the debt is yours not his. You will however have to provide a budget and show what you need to live on - do not include smoking, leisure activities or savings for example! The only warning I would give is if you own a property as that would interest the O.R. and your half of any equity in the property would go to him unless someone could buy it from you.
By Charley
#1508 Thank you for your reply.

We live in a council rented house, so thats not a problem.

The only money I have is child benifit and family tax credits, but I do pay bills with this money. I pay the rent, gas, ele, phone, and pay whats left towards the food bill, we have 3 children under 16. My husband pays all the rest of the bills.

Would that be ok with Official Receiver

we have nothing in joint, not even debts.
User avatar
By JaneClack
#1516 Yes it is. You may have to explain this to the Official Receiver but if your husband pays the majority of the bills he cannot be asked to pay any more!