Possession problem
Question
I've been sent a letter saying I could be made bankrupt. If this happens will they take goods from my home? I don't work and I don't have a business, basically I'm on benefits and I'm really worried about what could happen.
Answer
Once you are made bankrupt the trustee (the person who controls the bankruptcy) becomes liable for your financial position and can take a range of things to help pay off your debts. These include items in the house, the house itself and your car, if the trustee believes you could get a cheaper replacement.
Some of the items that cannot be taken from the house to help pay your debts include:
- Tools, books, vehicles, and other items of equipment necessary to a bankrupt client for their personal use in their employment, business or vocation;
- Clothing, bedding, furniture, household equipment (for example, a cooker) and possessions necessary for satisfying the basic domestic needs of the bankrupt client and their family.
This means that items with a value, such as jewellery, antiques, paintings, etc. can be taken to pay off your creditors.
If you are being made bankrupt you can find out lots of information about what happens and what assets come under the control of the trustee or receiver on the Insolvency Service website. But it might also be useful to contact your local Citizen's Advice Bureau (CAB) to see if they can help you resolve your debt issues without becoming bankrupt.
Updated: 12/06/2007
Question answered by CAB
