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

Moderators: TalbotWoods, JaneClack

By DevonDebt1
#327513 I don't know if anyone can help. If I have a car loan and go BR, will they take my car? I definitely need it for work.
User avatar
By TalbotWoods
#327773 Hi DD

Maybe.... It will depend on what type of loan it is, some are unsecured, some are secured on the car, some are actually HP.

If it is a straightforward loan, that is unsecured then the OR can snaffle the car, BUT if it is essential for work they allow you to get a cheap replacement, see the link at the end of this post

If it is a Secured Loan, or HP, then no the OR cant take it, and if they agree you need it for work the repayments are permitted in your I&E. BUT depending on who the loan/HP is with they may take the car back (not so often nowadays if you can continue paying) This is because you do not own the car!


By chandjay
#327843 I went BR last year. I was unemployed so I didn't get an IPO/IPA from the OR so I paid nothing back.
Because I was paying nothing back, and because I was unemployed(so I couldn't use the excuse of "using the car for work"), I felt sure the OR would take my car off me(it was worth about £1500 - £2000).
I told the OR I needed it to LOOK for work(in a desperate attempt to keep it), and the OR agreed that I could indeed keep the car if I promised him that I would DEFINITELY use it to look for work.
Needless to say, I made that promise and duly kept the car.
I think the OR has a lot of discression in this department.
User avatar
By TalbotWoods
#327863 Flipping heck chandjay, did you stand in Rocking Horse beforehand!!
By Jane1962
#328043 Hi,

I have a car on HP and was allowed to keep it as I hadn't defaulted on it. It's due to finish next month and so I'll be a little better off.

By DevonDebt1
#328223 Chandjay is just class!

Thanks for all the replies. Still weighing up options - I reckon I'll be 93 before I make up my mind!
By chandjay
#328233 To be fair to the Official Receiver, I believe his thinking was that if he let me keep the car to LOOK for work, and then I suddenly found some paid employment within the bankruptcy period(some hope), then I would be given an IPO, meaning that I would pay my creditors SOME of their money back for the next 3 years.

What is a real coincidence (ahem), is that just one month after I was discharged from Bankruptcy, I did, indeed, find employment, but alas it was too late for an IPO/IPA, so I didn't bother telling the OR.
I must admit, I was gutted that I found paid employment just 4 weeks too late to pay Capquest their money back.
Still, never mind eh.
By chandjay
#328253 Not as much as the smile on my face when I stuffed it right up Capquest.
They kept adding interest for 5 years, and I was always telling them that the total they kept telling me I owed them was just a "Fantasy Figure," - I told them time and time again they would NEVER get the interest and charges they kept adding on.
In the end I went BR, so they got bugger all.
I still find it difficult to sleep at night, thinking about the money I owed them, and how I'd let them down.
The only way I can sleep is to go down the pub and have a few bevvies, and then that helps me to relax and then I can nod off when I get home. (Well that's what I tell the missus anyway).
User avatar
By DuffNCustard
#328263 Chandjay me Old Plum Duff, the only possible thing that could delay your slumbers is that you need to smooth down those crackly £50 notes you lay upon. Try making the bundles smaller and wrap them in well used £20 notes I find this makes things most extraordinarily comfortable.......

........................ especially after a very large gin (Bombay Sapphire - its export strength 47%) and Dubonnet
User avatar
By JaneClack
#328293 One caveat if you have a car loan - whether or not HP - from Santander they will automatically repossess the car!! I think there is another lender who does this too but it is in the contract - we find this for IVAs too.