www.iva.co.uk

Hi I am looking to go bankcrupt as I see no other way out - my main concern is would I loose my car? It is a VW Fox value of around £5,000. I need this car to get to work as no public transport is availible
I look forward to hearing from you
Christina

Hi Christina and welcome.

Have you explored any other avenues such as an IVA or DMP? Do you have any other assets which might be lost in BR?

Your car would probably have to be sold, but you would be allowed to get another one round about £1500 - £2000.

Can you post a bit more about your circumstances so we can see if we can help you further?

I would recommend you speak to an IP. The experts who post on this forum are highly recommended and you can find their details in the experts section of the forum.

Regarding your car - a car of that value would be sold under BR proceedings, but as Jan says you would be given up to £2k from the proceeds to buy a replacement.

I would personally get the car valued and replaced prior to bankruptcy - keeping the remainder of the sale proceeds available to hand over to the OR subject to paying for a new car of up to £2,000 in value.

What you definitely shouldn't do is use it to pay off one of your creditors in preference to others you may have.

I'm a great advocate of bankruptcy in the right circumstances, but you should certainly make sure you've looked at the other options.

Best Regards