I'm considering going bankrupt

[das]

I'm considering going bankrupt. I have £67,000 worth of debt and currently living with parents so have no major assets. What I wasn't sure about is that one of the debts, is 500.00 for a sofa for my parents home (which is wehere I now live) from DFS. This was taken out three years ago and payments are made to GE Money. All payments have been made so far and but there is still 10 months of payments to run (£500).

Is it likely that this type of loan will be secured against the furniture? If this one goes into default will they reclaim the sofa? I;ve tried checking with DFS but they advised that they now deal with Black Horse Finance and can't pass on any Terms to me, and every time I call GE Money, the call is answered in India and everyone gives the standard response "we don't understand the question"

[freelili]

I do not know about the sofa but would imagine, since it is black horse it is a finance agreement and therefore the sofa would not be seized.

The only other advice that I can offer is to seek advice about bankruptcy from the sister site or discuss with the CAB. Some professions are affected by bankruptcy, I am not an expert just another person dealing with debt. One of the experts on this forum may be able to offer further advice to you.

I wish you the best of luck with this.

LILY

[MelanieGiles]

Hi das

That is a lot of debt for someone living at home with parents! I am sure that there are very good reasons for this.

It is unlikely that Black Horse will want to repossess a second hand sofa, so I really wouldn't worry about this any more.

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

[das]

Thank You. I will give the C.A.B. a call tommorrow.

I did attempt to post this question on the sister site http://www.bankruptcyhelp.org.uk/ but it was passed across and posted on this site instead, as they felt this site is more appropriate.

[neverending]

Hi
You can,t give a three year sofa away let alone repossess it and sell it !!!
Rest assured that this will be ok.

[jamesfalla]

Das

The advice that has been given by Lili and Neverending is quite correct. The agreement that you signed with DFS is not HP. It will be a standard finance agreement as governed by the Consumer Credit Act of 1974. As such, if you stop paying this and add it to your bankruptcy, the sofa will not be repossessed.

As Neverending says, DFS are not in the HP game anymore because the goods they sell just do not have any long term value that would be worth retaining with an HP type agreement

James Falla

Expert in IVA, Bankruptcy and informal Debt Management solutions for over 10 years.

For more information visit www.jamesfalla.com and visit my blog at: http://jamesfalla.blogs.iva.co.uk

[das]

Thanks everyone for you advice, it's been a great help.