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i was just wondering if the house and cars always have to go in bankruptcy even if there is no equity in the house.

No, Mark they do not always get sold in a bankruptcy. Each case is unique; and the Official Receiver rules as they see best for the creditors.
Hope this answered your question.

Take care.

All I have left is my humour.

thanks would i be able to tell right from the onset or its something that could spring up as a surpise in court.

Hi Mark,
I think it depends on whether your house has any equity and also the value of your car.

If you have NO equity in the property the you will probably be okay. If however you do have some equity then the OR is likely to realise that asset (or your share of the equity if the property is in joint names with somebody not connected to your debt). Typically you would be expected to sell your house within one or two years. I think you could potentially avoid this if someone can buy your share
of the equity but not sure.

As for the car, if it is of substantial value (what ever that is) then again it would be realised and you would have to sell up and buy a cheaper car if a car is essential for your work etc.

(Note: I'm no expert and am just regurgitating what I've read elsewhere. Hopefully I've not mislead you and an expert will soon come online and correct me if I'm wrong).

Best

OW

- 'I wont cry for yesterday 'cause there's an ordinary world somehow I have to find...'

A surprise in court? No, because it's not discussed at the petitioning.
The discussion about your home will be mentioned by YOU. You will inform the OR that you would like to keep the house. If little or no equity you may be able to keep it. Maintain the mortgage payments and all other secured loans (if any) on the property even after filing.

There is a sister site you can go to and read further about bankruptcy.
The link is:http://www.bankruptcyhelp.org.uk/. There is also an insolvency site and helpline number which could answer your asset question in detail. The link is:http://www.insolvency.gov.uk/guidancele ... e/home.htm

All I have left is my humour.

thanks guys.there is no equity in the house as i tried to get an equity release and was told there nothing for them to give me.
my car is on hp so it might be no good to whoever wants to sell it.no fantastic assets except for my clothes and house stuff which have next to no value

Generally you are allowed to retain a car of up to £3,500 in value, providing you need it for transport to and from work, and possession proceedings over a property are unlikely if the equity is less than £5,000.

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

thanks mel.i am actually talking to your colleague at the moment but we have some stress with childcare costs and are looking at our options such as bankruptcy or borrowing on the house in which case we are paying triple back.wish i could actually speak to you for advice rather than have someone act on my instructions as i consider myself naive.

Mark

Some good info already given about the house here. I would add to Melanie's comment about the car. I deal with a lot of bankruptcy cases and I know that the OR's office has guidelines to consider cars over over £1500 in value.

However, if you have a more espensive car, you will not always automatically loose it. The OR will give you the option of finding a 3rd party who is willing to pay the difference allowing you to keep your car.

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

Just to let you know that my car was valued at about £3300 and I was allowed to keep it as I need it for work.

Yesterday is history, tomorrow is a mystery, today is the present - a gift to make the most of.

View my blog at http://skippy13.blogs.iva.co.uk/

I am going to file for BR as soon as poss.when do I stop paying my creditors,now or when I am told to

My situation was a little different as I was already in an IVA, but if I hadn't have been I would have had to stop paying creditors immediately so I could save the money for the bankruptcy which costs £485, although you can claim £150 of that back if you are on benefits. Please make sure you take professional advice before petitioning for BR as the judge will ask you this, and if you say no they can refuse your BR, and you won't get the £485 back! Contact the CAB or CCCS. Good luck with, and if you have any questions please post and we will try to help you.

Yesterday is history, tomorrow is a mystery, today is the present - a gift to make the most of.

View my blog at http://skippy13.blogs.iva.co.uk/