Bankruptcy

[ByDiesel500]

I took out a FIAT Finance deal on my 500 in march and i have it on the 4 year scheme where after the 4 years it can go back or i can use it as a deposit on a new one etc,,, anyway i may have to file for bankruptcy as im getting myself into alot of debt with the can and its got too bad, so basically if i declare myself bankrupt would FIAT just take the car off me and thats it? never done this before?

 

[dronenrs]

i think they would take it back and you lose all your money.

 

[volxstu]

You agreed to a finance deal on a new car in march and Bankrupt by may? Im going to be the first to say how did you not see it coming, surely nothing that drastic can happen in 2 months.
I cant help you as i dont know but i hope you have learnt your lesson.

 

[Shadeyman]

They'd take it back and try to claim any money owing on the contract ..

 

[ByDiesel500]

yes i know i know, fact is iv learnt lesson and need to sort it, but sureley if im bankrupt the car goes back and the debts written off?

 

[dronenrs]

i doubt it for some reason. they may possibly reduce your debt payments to manageable levels but i doubt they would write it off completely. read the small print

 

[Shadeyman]

yes i know i know, fact is iv learnt lesson and need to sort it, but sureley if im bankrupt the car goes back and the debts written off?

As Stu has already said, you agreed to a 4 year contract knowing you may soon need to declare yourself bankrupt, you defaulted on the contract. They'll probabely try to claim all 4 years from you and a judge will probabely grant it because of your stupidity.

Time to read the small print of your contract.

 

[volxstu]

I presume (and only presume) that they will take the car back and use the money from that to pay off part of the debt.
As for how much you owe it will depend on how your bankruptcy works. I think there is one that means your debts are wiped and one that works out a sensible repayment scheme.
I think you have to not be able to pay off your debts for 4 years to get the CCJ or whatever.

 

[ByDiesel500]

ok for the record, when i took out the car i didnt have any intention of declearing myself bankrupt, nor did i say i was going to, i said i may have to and was only asking what would happen to the car, wasnt looking for a grilling,

 

[ByDiesel500]

bankrupt wipes all your debts clear, an IVA makes the repayments easier

 

[custard]

i doubt it for some reason. they may possibly reduce your debt payments to manageable levels but i doubt they would write it off completely. read the small print

Bankruptcy draws a line under the individuals debts
so there is no reducing of payments

ByDiesel500,have you taken advice on this?
going BR isn't a simple decision to make and has implications on your life for years

 

[Shadeyman]

bankrupt wipes all your debts clear, an IVA makes the repayments easier

99% of what you need to know.
http://bankruptcy.org.uk

 

[bludvl_x19]

I took out a FIAT Finance deal on my 500 in march and i have it on the 4 year scheme where after the 4 years it can go back or i can use it as a deposit on a new one etc,,, anyway i may have to file for bankruptcy as im getting myself into alot of debt with the can and its got too bad, so basically if i declare myself bankrupt would FIAT just take the car off me and thats it? never done this before?

Go see a bankruptcy lawyer. This stuff is nasty, and will follow you for a long time (at least over here it does)

 

[ByDiesel500]

i have had some info but none of them can give me info regarding what fiats actions will be, i know il struggle etc to get a house as at the moment im renting off a familey member, but looking at the house prices and deposits needed it will be about 10 years before i can afford my own place!, the advisers have said it stays on your record and cant get credit over £250 for around 5-6 years after, which to be honest will do me a favor!, if i cant have it, i wont basically

to be honest i dont care if the 500 goes as im sure it will

 

[Shadeyman]

to be honest i dont care if the 500 goes as im sure it will

Can I Keep My Car In Bankruptcy?

You can be allowed to keep a car in bankruptcy but there are a few requirements for this: you have to show a need for a car, the car must be of modest value and the Receiver must allow any expenses associated with having the car.
http://bankruptcy.org.uk/bankruptcy

 

[Percyhahn]

Can I Keep My Car In Bankruptcy?

You can be allowed to keep a car in bankruptcy but there are a few requirements for this: you have to show a need for a car, the car must be of modest value and the Receiver must allow any expenses associated with having the car.
http://bankruptcy.org.uk/bankruptcy

modest value? thats a bit of a vague description, is that modest in a couple of grand for a car, or is it that the 500 is a modest valued car compared to other cars eg audis, vws, mercs, bmws etc

 

[Shadeyman]

modest value? thats a bit of a vague description, is that modest in a couple of grand for a car, or is it that the 500 is a modest valued car compared to other cars eg audis, vws, mercs, bmws etc

Each bankruptcy is assessed on a case by case basis and the expenses that you are allowed depend on the assessor. Due to the fact that from the 1st of December 2010 onwards, anyone with an IPA agreement is expected to pay all of their disposible income, that is 100% of their spare cash towards their debts. I would expect "modest value" to be below £1000.

Edit.
Incase anyone is wondering why I know something about this, I had a bussiness partner once who declared himself bankrupt almost taking me with him, I had a lucky escape.

 

[multiplied]

in your case they will definately take back the car, modest means a used car up to around 3k ish . fiat finance will not be able to hound you, all your debts will be wiped clean-period.
its about £400 to declare bankruptcy plus a small ammount to start proceedings.
you will have to explain yourself to the official receiver once declared bankrupt by a telephone interview in the court building.
depending on your honesty and circumstances, best case senario is restrictions for one year, but can be further if it looks like you have run up debt with intent of going bankrupt or are not honest.
your very best bet is to arrange interview with your local citiezens advice, they will talk you through it all & even fill in forms for you, and its free.
not a decision to take lightly, but it will give you a clean slate & fresh start. my father in law has just done it & feels a huge weight gone from his shoulders.

 

[herpsuk]

Whether you go down a Bankruptcy or an IVA you can work it that you can keep your car, which has already been stated, Unless you want rid of it for what ever reason.

What id recommend is contacting either an Insolvency Practitioner or an Insolvency Solicitor. One of the two can better direct you in your bath towards Insolvency. It may seem very daunting at first but once you get the ball rolling you will realise it is not all that bad and the people that are handling the process are actually very nice .

I am quite surprised at the way people treated him to start of with, insolvency is a hard process for someone to go down. It feels like your world is crashing around you and that everyone is against you. It realy doesnt help the matter when people are shouting at you, telling you off etc!

Personally i am part of an Insolvency Firm and speak to individuals and businesses like your self on a day to day basis. I would be happy to have a talk with your self tonight/tomorrow/any other day of your choice to see if i can advise you better. If you dont need my help but need that of a solicitors i can forward you onto a Insolvency Solicitor i know who is one of the best going.

I can talk online but with that nature of the subject it is alot better and easier to talk on the phone. My Freephone Number is 0800 069 9600, I am contactable on this 24/7 but if you cant get through to me just leave a message and ill call back as soon as i can. If you would prefer a mobile number, land line or email i can PM you these also.

Regards

Jonathan

p.s. We do not charge for initial contact as mentioned above and id rather help the individual in the right direction, whether it be with my firm, another firm or with non at all.

 

[sledge]

Why are you asking for advice on this subject in a forum like this? Bankruptcy is a very serious situation , the circumstances vary depending on the individual and the implications can last a lifetime........get some professional face to face advice ASAP.