Bankruptcy advice for those who need help with debt in the UK

There are a number of questions that people ask when seeking advice on going bankrupt in England and Wales. For people seeking help with debt, going bankrupt is a big step and here you will find the most the advice most commonly given.
How Long Will I Be Bankrupt?
The usual length of a bankruptcy in England and Wales is just a year. The vast majority of people will be automatically be discharged after one year. Those who have been culpable in their bankruptcy, for instance through gambling, can expect to see their discharge suspended for between three and fifteen years.
Can I Keep My Car?
The Official Receiver will allow you to keep a motor vehicle if it is required for work, with a value of up to £2,000. The vast majority of those going bankrupt will have a car valued at less than this. Others may have a car on finance. The Official Receiver will often not interfere in a situation where the car is on finance and the finance company is happy for payments to be kept up. If a vehicle is owned which is valued at more than £2,000 the OR will take a view as to whether he can realise its value and of so will expect it to be delivered up to him and in return he will provide £2,000 in cash.
Can I Keep My House?
This is usually the main question that people ask. For some of course, the chance to allow the house to be re-possessed and any negative equity written off in the bankruptcy is a good option. In times of falling house prices such as we are experiencing at present, negative equity can present itself very quickly. If bankruptcy has been brought on by unemployment, it can be impossible to keep up repayments on the mortgage in any event.
The share of the house belonging to the bankrupt will vest in the OR on the making of the bankruptcy order. If there is no equity in the property, the OR will be happy to transfer it back to the bankrupt or another named person for £1 plus his costs. If there is a little equity, the house can be transferred back for the payment of an agreed figure.
It should be noted that whilst the bankruptcy will probably end after one year, the OR will have up to three years to deal with the property so it is best to get any issues with the property dealt with immediately.
Will I have to Pay Income to the OR
If you have disposable income this will need to be paid to the OR for a period of three years. If you engage an expert he will be able to show you how to best deal with your income and expenditure so as to produce the best disposable income situation.

If in doubt about how you may be affected, make sure that you take professional debt advice.