Can I Keep My Car In Bankruptcy? | How to Get Out of Debt in the UK

Question

I am considering going bankrupt and need the use of a car for work. My car is not worth much and I am wondering if I can keep it if I go bankrupt?

Answer

You can be allowed to keep a car even if you are bankrupt, but there are a few factors that are considered.

First, can you show a need for the car; this may be for work, there is no public transportation, medical issues, family reasons, etc.

Second, what is the value of the car in question? Usually the car would need to be worth less than 2K.

Lastly, there is the issue of affordability and if there is financing on the car. The Official Receiver will need to allow all expenses associated with the car; insurance, MOT, tax disc, etc. Also, the monthly payment if there is financing must be allowed and the finance company must be OK with you going bankrupt. Most finance companies are fine as long as the payments are still being made.

Get Out of Debt Guy UK

Would you like free help? Ask your question here.

Source: http://getoutofdebt.org.uk/5619/can-i-keep-my-car-in-bankruptcy

jk rowling j.k. rowling j.k. rowling school closings knicks resolute national enquirer whitney houston casket photo