I want to declare myself bankrupt

[julesl]

I want to declare myself bankrupt as I cannot cope with my debts

There is no equity in my house and I have a £10,000 charging order also some loan and credit card debt if I go bankrupt will I automatically lose my house

My only asset is my 2 year old peugeot I'm not sure if the reciever will force a sale or if Peugeot can take it back, it was on a passport lease/buy scheme where you lease for 3 years then buy or give back. I have had it for 2 years and according to there contract because I have paid over 33% of the total owed they have to get a court order to retrieve the car. Have I got a cat in hells chance of keeping the car? I cannot get to work without it.

[MelanieGiles]

Hi jules

You will only lose your house if you have equity in it which you cannot persuade friends or family to purchase for you. As you have no equity in the property at present, I suggest that you get a close relative to make an offer to the Official Receiver for a nominal sum towards the beneficial interest - if you do decide to go bankrupt.

How much do you think your car is worth? And if it is the subject of a leasing agreement, it will be up to the leasing company to decide whether you can keep it. Check the small print on the agreement, but I fear that bankruptcy probably gives them grounds to collect it. It if is on hire-purchase, then you may have more of an argument, but it is down to the Official Receiver to decide ultimately.

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

[Oliver]

If there is no equity in the property then you should be able to buy the title back for a nominal sum (as little as £1) but will also usually have to pay the solicitors costs for doing this.

Best Regards
Oliver

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