We are often asked the question ‘Will Bailiffs remove my furniture if I go bankrupt?’ The answer is generally ‘no’ but people’s circumstances can vary enormously. However, if you have high value items such as vehicles, antiques and other assets which are known to your creditors then there is a risk that some of these items might be attached.
We often hear people saying that they’ve received conflicting information about two specific things in bankruptcy: cars and household goods. There is an official stance on this as laid out in the Insolvency Service’s Technical Manual and this decides whether the value of cars that may be kept and whether household goods are safe in bankruptcy.
At the risk of sounding bookish, paragraph 30.145 on the Insolvency Service’s Technical Manual (you can find this online) clearly states that the prescribed limit for cars is £1000, provided they are needed for work or for care work. However, this figure is not set in stone and is often stretched according to circumstances. For example, a Senior Manager or company rep might need a slightly better car in terms of company policy and the Insolvency Service can’t make any decision that might result in the loss of a job.
Regarding household goods, these are safe in bankruptcy. paragraph 31.10.11 on the Insolvency Service’s Technical Manual says, and we quote: Such clothing, bedding, furniture or household equipment and provisions as are necessary for satisfying the basic domestic needs of the bankrupt and his/her family do not form part of the bankrupt’s estate. Amazingly, we’ve heard about Debt Advisers saying that household goods are attached in bankruptcy, but nobody comes to the house at any point in bankruptcy.
Bankruptcy UK has been helping people with bankruptcy since 1998 and will guide you through the process step by step. We will avoid jargon and confirm all discussions by email within 30 minutes. Call us for a chat about your circumstances on 01425 600129.