Call Us Free: 0800 36 88 133
Follow Us:

Bankruptcy and my car

Big or small, every debt problem can be solved

Bankruptcy and my car

This section covers the questions you are most likely to ask about your motor vehicle - a car, van, motorbike or any kind of transport powered by an engine - if you go bankrupt.

The ownership of your vehicle will be affected by bankruptcy whether it's owned outright by you, or if you're paying for it through a finance package.

bankruptcy and my car

If I go bankrupt will I be able to keep my car?

Your car or any other motor vehicle is an asset. The official receiver can sell your vehicle to help pay your bankruptcy debts.

You can ask the official receiver to let you keep your vehicle.

The official receiver will look at all the facts before deciding whether you will be able to keep it. Each case is different.

Free Online Bankruptcy Eligibility Test

Check now

Use our Free Online Bankruptcy Qualification Check to see if Bankruptcy could be the right option for you.

How does the official receiver decide whether I can keep my vehicle?

The official receiver/trustee will have to decide whether it is an asset in your bankruptcy or if it is exempt property. Exempt property is something you own that cannot be claimed as one of your assets and sold to help pay your creditors (people you owe money to).

For your vehicle to be exempted, you will have to show the official receiver that it is necessary:

  • for your personal use in your employment, business or vocation; or
  • to meet a basic domestic need of you and your family.

How does the official receiver decide whether I can keep my vehicle?

The official receiver will only let you keep your vehicle if it’s essential and of low value.

A vehicle may be classed as essential if:

  • You couldn’t do your job without it
  • You or someone in your household needs it because of a disability
  • There’s no possible way you could get to work or school without your vehicle

If there’s any way you could use a taxi or public transport instead for any of these journeys, the official receiver won’t usually class your vehicle as essential, even if using public transport would be very inconvenient. The official receiver will look in detail at public transport routes and costs in your area when deciding if you can keep your car.

If the official receiver agrees that a vehicle is essential for your household, they'll take into account the value of your current vehicle. They may order you to sell your vehicle and buy a cheaper alternative.

This would usually only happen if your vehicle is worth more than £1,500, and the official receiver would normally allow you £1,000 to buy a replacement.

You may still be able to keep your vehicle if you can arrange for a partner, friend or family member to pay the official receiver the money they would have raised from a sale.

Seek advice.

Before you take any action to apply for your own bankruptcy, you should seek expert advice about bankruptcy and the other options available to you. The Insolvency Service and the Courts cannot advise you on specific insolvency problems; for example, whether you should go bankrupt.

Need Bankruptcy Advice?

Our panel of specialists can quickly advise you on what to do if you are considering going bankrupt. Simply call the team FREE on 0800 368 8133.
Alternatively take the online bankruptcy test and check if you qualify.


no credit on prepayment meter

What to do if your prepayment meter has run out of credit

Read

This guide explains what you should do if your pre-payment meter for gas or electricity runs out of credit....


Lowell Portfolio 1 Ltd

How to deal with a Debt Collection Letter from Lowell Portfolio 1 Ltd

Read

Have you received a letter from Lowell Portfolio 1 Ltd. In this guide we'll show you a common letter they send, the tactics they use and how to deal with...


debt advice

Young Adults Could Face A Lifetime Of Debt

Read

More and more 17-24 year olds are being forced to turn to bank and payday loans as well as borrowing from friends and family. We explore what help is available...

Contact the Money Advice Team:

moneyadviceonline.co.uk 0800 36 88 133

0800 36 88 133

(freephone, including all mobiles)
money advice online

Request A Callback

No time to talk, we'll call you back.
money advice

Have A Question?
Ask an expert now.

Need Need Help? Our team of experts will send you their answer by email within 1 working hour.

Connect With Us

Latest testimonial

Fantastic,they are life savers.

I Contacted them at 5 pm on a Thursday night,they arranged a meeting Friday morning with all the relevant bodies their because my case was the following Monday .I can't sing their praises high enough they contacted the courts same afternoon. Fantastic response, I avoided bankruptcy on the Monday and was given time to arrange an Iva. I risked losing my home,my mother and fathers home all hope seemed lost until I made that fateful phone call. I can now sleep at night.

Darren

Join 100,000s of Money Advice Onliners who read our WEEKLY email. Get our round up of ALL the best money saving tips, best buys, discount vouchers and competitions. Don't miss out!

* indicates required

We hereby promise to be responsible emailers.

Contact Us
  • Address: Digital World Centre, 1 Lowry Plaza, The Quays, Salford, Manchester, M50 3UB
  • Phone: 0800 36 88 133
  • Email: [email protected]
  • Mon - Fri: 8:00 am - 9:00 pm
    Sat - Sun: 10:00 am - 4:00 pm
Say Hello

Moneyadviceonline.co.uk is a trading style of Baker Adams Advisory Limited © 2018 All right reserved.
Registered office: 6 Abberley Hall, Chelford Road, Alderley Edge, SK9 7TJ. Registered in England and Wales. Co Reg No. 11246301

Moneyadviceonline.co.uk is a comparison service that acts as an introducer to companies who offer regulated financial advice (FCA approved). Our website is completely free for you to use but we may receive a commission from some of the companies we feature. Moneyadviceonline.co.uk does not provide any advice and we are not liable for any financial advice provided by, or obtained through a third party. As with any investment, the value of investments can fall as well as rise and maybe worth less than what was paid in. Past performance is not an indicator of future results. Moneyadviceonline.co.uk does not provide any regulated debt activates in relation to debt counselling or adjusting. You can also get free impartial debt advice by following this link to the Money Advice Service.

Bankruptcy Advice, IVA, Business Loan