We find that most people are confused with what can be included and what cant. What Debts are Written Off In Bankruptcy? And what are you going to lose if you enter bankruptcy?
Insolvency rules, regulations and what separates fact from fiction is hard for a lot of people facing difficulty to find.
Cars that are owned by someone else that the bankrupt has the use of are generally OK. Its actually quite common for people to help one another out and cars get bought by third parties for other people to use and maintain. On the registration document it states that the registered keeper may not be the registered owner.
Mortgage shortfalls, credit cards, unsecured loans, trade creditors can all be included in a bankruptcy.
Iva’s and debt management plans may have more flexibility when it comes to vehicles on finance needed for work can often be kept. Machinery and plant really needs to be necessary for the individuals occupation. But if you were a business like a small bus company or plant machinery company or business then you would not be able to have surplus stock that was not used as your basic tools of trade.
Work peoples tools are classed as tools of trade and will not be at risk.
Pets will not be classed as an asset unless for some reason there was a significant high value like a race horse. But nothing else should be at risk.
You can include everything in a bankruptcy from parking fines, HMRC liabilities and even solicitor and medical bills, but you can’t include child support obligations (CSA), Student loan debts, State benefit overpayments (in some cases, not all) and debts as a result of criminal activity / court fines. Regarding student loans, anything taken through the official channels cannot be included, but if a personal loan was taken to pay for studies, it can. Just to clarify, if you were to lose a civil case in court and were ordered to pay, say, £10,000 you would also be entitled to include this in the bankruptcy.
Bankruptcy UK offers a full bankruptcy administration service and will submit your bankruptcy application online. Court appearances are no longer required for bankruptcy. Call us for bankruptcy help on 01425 600129 or for an informal chat about your circumstances.