Bankruptcy question

[senraboj]

Although we are looking at an IVA, as we have no assets and negative equity in our house, we have had BR mentioned. What happens regarding our posessions? Does the OR come into the house and take anything of value? What about our cars? [:(]

[chris.g]

The OR will not come to the house unless they suspect that you have a lot of things of value there, ie., valuable antiques/paintings etc.
The cars may be seen as assets and sold unless you need them for employment. If the value is above £2500-3000, the OR can sell them, allowing you some cash to buy a more modest car and use the extra money to pay your creditors.

[senraboj]

thx, don't have any antiques (other than hubby!) or paintings. Was thinking about tv & kids games stations etc.
Guess we might lose cars then....

[pbeck]

You won't lose TVs and game stations, unless just possibly they're worth thousands.

If the car(s) are on finance you'll ony lose them if there's equity in them so that they can be sold, the finance cleared, you be given a sum for replacements and leave something over for the creditors. If you've got a £20K car with £19K of finance outstanding on it it won't be taken away if you keep making the payments on it.

[senraboj]

no tv & games stations aren't worth that much. Cars are both paid for, and worth approx 4K and 6K, and are both needed for tavelling to & from work.

[zoe]

It is more than likely these will have to be sold im afraid - they look at values over about £2000 i think

[senraboj]

That's what I thought. Well BR hasnt been decided yet so maybe we'll be ok. It's good to have the info though...

[Soulgrowth]

Always good to consider all the options [:)]

Debbie