bankruptcy

[s_t]

Can someone let me know please.I owe apprx.£40,000.which is made up of a caravan which i owe £25,ooo.on and around £16,000.on credit cards and catalogues.If i declare myself bankrupt would it effect my husband,and hes status or will he be made to pay on my behalf,Also we rent from the council and our car is 12 years old will the baillifs get involved and what could they take,i.e would the goods have to be in my name.Please someone help as i am at breaking point.

[MelanieGiles]

Hi st

Is the caravan on a HP agreement? If so, then it is unlikely that the creditors will allow you to continue to make those payments, unless there is a good reason why you need a caravan. Your husband would not have to make any contribution to your creditors, and your car will only be affected if it is of high value - ie more than £3,500. If you are bankrupt, then there will be no further bailiff actions, as your affairs are then handled by a Trustee.

Regards, Melanie Giles, Insolvency Practitioner for over 20 years.

For further details contact me at http://www.melaniegiles.com and view my IVA blog at: http://melaniegiles.blogs.iva.co.uk

[s_t]

Hi melanie,
Thanks for the reply.As to the caravan yes it is on finance and i would gladly give it back,as thats what really started my downfall.the fact is i cannot afford to pay for it anymore and i have missed my second payment on the van.As to the the trustees what is there role and what do i tell my credit cards and the catalogues to which i owe all this money to,Let alone my husband as he knows nothing about all this as he thinks i got the money when my mum died at the beginning of last year.

[MelanieGiles]

OK - so the first step here is to invite the HP company to collect the caravan on the basis that you can no longer afford to maintain the repayments. You will need to check the termination provisions of the agreement, as depending upon the amount you have already paid off, the finance company may let you sell the vehicle in order the get a higher price. Once any residual debt due to the finance company has been established.

Once you have calculated exactly what you owe, then I would suggest you take professional advice from an insolvency practitioner as to your options. If you have some disposable income which you could offer to your creditors on an ongoing monthly basis, and IVA or Debt Management Programme are also alternatives.

Regards, Melanie Giles, Insolvency Practitioner for over 20 years.

For further details contact me at http://www.melaniegiles.com and view my IVA blog at: http://melaniegiles.blogs.iva.co.uk