The Law concerning when you can keep your car when you have been made bankrupt

Sections 283 and 308 of The Insolvency Act 1986

 

FIRST THE GOBBLEDYGOOK

 

Whether you can keep your car or not in a bankruptcy will depend on the interpretation of the provisions of Section 283 of The Insolvency Act 1986 to your particular case.

Section 283 says-

"283 - (1) Subject as follows, a bankrupt's estate for the purposes of any of this Group of Parts comprises-

(a) all property belonging to or vested in the bankrupt at the commencement of the bankruptcy, and

(b) any property which by virtue of any of the following provisions of this Part is compromised in that estate or is treated as falling within the preceding paragraph.

283 - (2) Subsection (1) does not apply to -

(a) such tools, books, vehicles and other items of equipment as are necessary to the bankrupt for use personally by him in his employment, business or vocation;

(b) such clothing, bedding, furniture, household equipment and provisions as are necessary for satisfying the basic domestic needs of the bankrupt and his family. ..................."

 

Find out what this means IN PLAIN ENGLISH by reviewing the case study on bankruptcy and your car