Household Items

It is a common misconception that if you declare bankruptcy all of your household items will be taken away from you and you will be left with nothing. This is just not the case.

You are allowed to keep all of you reasonable household items including washing machines, fridge freezers, TVs, Stereos, furniture, and clothing. In fact you will normally only be asked to give up household items if they have extraordinary value such as art or antiques.

As such, you should not decide against the bankruptcy process because you are worried that you will lose personal possessions from your house. This very rarely happens.

Vehicles

If you have an expensive car, you may have to think more carefully about bankruptcy. You are allowed to keep a car that you need worth up to £1500. However beyond this value the car may have to be sold and a cheaper vehicle purchased.

You will be able to keep a more expensive car if you need it for your trade. For example if you are a taxi drive and your vehicle is required for work (ie a tool of your trade). In addition, if your car is worth more than £1500, it is possible to keep it if a friend or family member is willing to pay the difference to the official receiver.

Your Home

If you are renting there is generally no risk to your home. However, if you are a home owner, you will need to think much more carefully about bankruptcy as an option.

If there is equity in your home, it may have to be sold so that this can be released for the benefit of your creditors.

However, you will not automatically lose your home if you declare bankruptcy. If there is little or no equity in the property, you may well be able to buy it back from the Official Receiver for the nominal sum of £1.

Important - If you are a home owner, you must get further advice from Bankruptcy Expert before deciding to declare yourself bankrupt so that you can understand all the implications based on your personal circumstances.

How to Start

Got a question? Why not use the Bankruptcy Forum which gives you direct online access to debt management experts

Call us now on 0800 077 6180 to discuss how Bankruptcy could solve your debt problem