tad_admin Staff asked 12 years ago

If I loose the car through bankrupcy, I will not be able to afford to buy another. However, I could keep up the monthly payment on the car. What would be the position on this?

10 Answers
tad_admin Staff answered 12 years ago

It depends on how much you owe on the car and how much is left over when you sell it. A rule of thumb is you can have a car worth £500. However, if your car is necessary for your business or job and it is seized, the cost of a reasonable replacement should be allowed for from the estate. With many bankruptcies, after the trustees expenses are taken out there is often little left. This means you should fight hard to keep the car if this is the case.

answered 12 years ago

It is very unlikely you will be able to keep the car. Even if it is essential for work a modest replacement will be arranged for you. I would be interested to know what your trustee tells you at your bankruptcy interview.

answered 12 years ago

My car is worth about £2000 maximum and has a few knocks and dents, its essential for my job and the children. Will they take it when i go bankrupt?

answered 12 years ago

I have a car that is fitted with a hoist to lift and carry my mobility scooter as I am registered disabled, could this be seized?

answered 12 years ago

Normally Bankruptcy proceedings will not be able to with-hold a person of their ability to work. Thus if a car is a work-tool (and modest) you would probably keep it. If domestic and pleasure (insurance cover) applies there is the possibility of loosing it.