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This is where to post your first questions about any debt problems you have
By patchsteven
hi, im about to submit my bankrupcy application on line but i have a car on finance that i want to hand back so after they sell it it will become an unsecured debt as there will be a shortfall which i will include in the bankrupcy.
my question is do i have to wsit for them to take it back and then i can class it as unsecured or can i procced with bankrupcy submission and just include it on my list as a secured debt and tell the or im handing it back .
i just dont want to delay the bankrupcy any longer
User avatar
By Geraldine
Hi patchsteven

You don't need to delay your bankruptcy application. You should list the anticipated shortfall on the car finance as one of your creditors in section 5 of the application form. Estimate the shortfall by taking the current market value of the car and deducting the outstanding finance (including any balloon payment). If the actual shortfall figure turns out to be different it does not matter.

Obviously do not include the finance payment in your living expenses budget. When you speak to the O you can explain that you are waiting for the finance company to take the car back.
By patchsteven
thanks for the info.
im just about ready to submit online now.
for my expenses. ive worked from a combination of allowable allowances from wilmott turner guidelines and that of my previous iva so hopefully the OR will accept them.im guessing if there too high the Or will round them down but ive gone a little higher in all areas because im trying to avoid Ipa situation.
only problem i have found on application was section 1 and 2 where they ask if any children live with me or live elsewhere.
i have 4 kids whom stay with me at weekends only but live with my ex partner the rest of the time so not sure what to complete.
im guessing i say they dont live with me but live elsewhere but in my expenses i increase the living allowances to cover when they stay with me and when the OR queries why expenses are higher than usual i then explain the situation
or is it better to say on form they live with me and then explain to Or that its only at weekends z?
User avatar
By Geraldine
Thats a bit of a technical question Patchsteven. Probably something that James Falla would know the answer to.

Good luck with your application.

Let us know how you get on with the OR :)