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A good starting point for bankruptcy questions
By chrisscott666
#33051
hi im new to this, I owe HMRC a lot of money and they will probably be looking to make me bankrupt

I have some house hold items that im wondering about there 4-5 years old

new now
couch 4500 500 to 1000
tv 4500 500 max as 5 years old
tv 2500 same
fridge 1200 300 ish
dining table 2000 700

that's the only valuable items I have and like I say there old, tvs go out of date so fast they may not even be worth that

I bought my father a watch approximately 5000 and gave him it about 4 years ago, its engraved with his name etc when he was ill. will they want this_ he ha no house insurance so its on my policy for loss

if I go bankrupt will they come after these items. how do I declare them on my form with new price or approximate value now

Regards Chris
User avatar
By Geraldine
#33053
Hi chrisscott666

I do not think you need to worry about the household items you have described. Your furniture and electronic goods are not at risk unless they are particularly valuable. Given the values you have suggested I do not believe they need to be declared on your application form.

More information about this can be found here: How does Bankruptcy affect my possessions?

In terms of the watch you bought your Dad again this is not an issue. I would not mention it at all on your application form. There is only a need to do this in section 3.5 if you yourself owned a possession that you then gave to a third party so that it would not be considered as an asset in your bankruptcy. A gift that was bought and given 4 years ago does not fit into this catagory.
User avatar
By Hayden
#33056
Hi chrisscot666

I agree with Geraldine. If you go bankrupt reasonable household assets are generally exempt. The rule that the official receiver must follow is that household items can only be taken if the amount raised from there sale is greater than the cost of their reasonable replacement. The sale of most household items will not achieve this because their resale value plumits as soon as you walk out of the shop with them. As such household furniture and electrical items are almost never listed as assets on a bankruptcy application form.

In terms of the gift you bought and gave to your Father 4 years ago again you do not have to worry about this. It does not have to be mentioned. 4 years ago you were not considering bankruptcy so it is not as if you were trying to get rid of assets at that time. Giving away assets is only an issue if you gove away something you previously owned with the intention of trying to hide it from the OR in the even of your bankruptcy.