Check how bankruptcy affects your belongings

Summary

There are some belongings the official receiver can’t sell. They’re called ‘exempt’ belongings. You can usually keep the following items: * tools and equipment for your job - if you use them yourself rather than lend them to someone else * a car or other vehicle you need for work or your basic needs - for example, if you’re disabled and can’t go anywhere without a car * a car or other vehicle you need to care for a dependant * other belongings that are necessary for your basic family needs If you’re still paying for something on hire purchase, the official receiver might sell it - even if it would usually be exempt. If you’re not sure something is hire purchase, check if the loan agreement includes the words ‘hire purchase’. The official receiver might also sell something exempt if it’s valuable. They’ll only sell it if they’d get enough money to replace it with something cheaper and have money left over to pay your creditors. For example, if they sell an expensive car they’ll give you £3,250 to buy another car and use the rest of the money to pay your creditors. The official receiver can sell items which aren't needed for your job or your basic home needs. This includes: *.

Key information

• household equipment, such as a cooker
• tools and equipment for your job - if you use them yourself rather than lend them to someone else
• a car or other vehicle you need for work or your basic needs - for example, if you’re disabled and can’t go anywhere without a car
• a car or other vehicle you need to care for a dependant
• other belongings that are necessary for your basic family needs
• jewellery - you can keep your wedding ring if it’s a plain gold ring
• leisure equipment, such as games consoles and cameras
• caravans - there are different rules if the caravan is your home
• financial assets - for example, cryptocurrencies
• approach the other owner to try to agree a value for your share of the goods
• offer the other owner the chance to buy out your share of the goods
• if the other owner doesn't agree, the official receiver might apply for a court order to sell the goods

Practical guidance

• Source: Check how bankruptcy affects your belongings

Related topics

More in this area

• Check if a financial service has followed the rules
• Check if you have to pay a debt
• Check the rules after you go bankrupt
• Check what an IVA is
• Cold called by a debt management plan provider