my income is less than my out goings

[wouldyalikeacake]

im considering going bankrupt i have unsecured debts around £1200, i have a car on hire purchase and have £3500 left to pay, the market value for the car is aprox £3000, i am a single parent working part time on low income and in receipt of tax credits, my income is less than my out goings, if i go bankrupt will i loose my car and mobile phone contract, just wondering, not that loosing a car and phone will make me carry on suffering

[Adam Davies]

Hi
I would think that as your income is less than your outgoings that you will have to return the car as you will not be able to continue paying for it.
The shortfall will form part of your bankruptcy
Regards

[Skippy]

Regarding your mobile phone contract, do you owe the company any money? If you do, it will form part of your BR and you won't be able to keep the contract. If you don't owe them there is no need to declare the contract, although whether the OR will allow you the payments as part of your expenditure depends on how high your monthly bill is.

One other thing, I have heard of mobile phone companies terminating the contract of people who have gone BR, but Vodafone were fine with me and I haven't had any problems.

[MelanieGiles]

With debts of only £1,200, I would not have thought the Court would feel that bankruptcy would be an appropriate option for you, and you may be steered more towards an Administration Order. Yours is also a classic case for the soon to be introduced Debt Relief Order, but we do not yet know when these are likely to be introduced.

Have you thought about approaching the HP company to see if they would be prepared to reschedule your debt, which might result in freeing up some money to enable you to repay your other debts. Bankruptcy does seem an awfully harsh solution for someone with such low debt.