buy now pay later and bankruptcy?

[ladylumps45]

hi, i purchased a bed from dreams on buy now pay later through barclays finance.it is due to be paid in june next year.

unfortunately it looks like i will have to go bankrupt in the next few months although im trying my best to cope and havent defaulted on anything yet.

the bed cost 3,800 pounds.will i have to hand the finance agreement to the OR? will the bed get taken away? thankyou.

[cerberusalert]

Is it a credit agreement or HP?

[ladylumps45]

erm....im not sure .i know that i have to pay the full 3,800 in june which is interest free.if however i dont pay the full sum in june then barclays will take 200 pounds a month out of my bank and the total amount paid will be a hell of a lot more because of interest.

does that help?

[cerberusalert]

It sounds like a credit agreement in which case they cannot repossess the goods and you should declare it in your bankruptcy.

 

Do you still have your copy of the agreement? If you do it should state at the top Credit Agreement Regulated Under The Consumer Credit Act 1974.

[ladylumps45]

thankyou very much for your help cerberusalert.i think i do recall seeing that.i have still got the agreement and i will dig it out tomorrow.would i have to put the bed as an asset on the bankruptcy forms or not as i am hoping that the OR wont take it.

[cerberusalert]

A bed is a necessity not an asset.

 

Items excluded from Bankruptcy

 

It is only reasonable that you be allowed to keep essential items and are not impeded from earning a living. Items which can to be excluded from bankruptcy include:-

Household items essential for basic domestic needs. e.g. Clothes, Furniture, TV etc.

A modest vehicle depending on circumstances.

A residential tenancy.

Items needed for trade or employment such as tools and computing equipment.

Money held in pension funds.

Money obtained from a student loan, if a balance of the loan remains payable.

[ladylumps45]

oh i see,thankyou very much.your help is much appreciated.

[cerberusalert]

The following link explains more.

 

Bankruptcy Advice - Money Advice and Information - CCCS

[ladylumps45]

good evening cerberusalert

ive got my copy of what i signed here and i think it is as you said.it says it is a fixed sum loan agreement regulated by the consumer credit act 1974.it also has the cca74 part written again in the box that i signed in.

[cerberusalert]

Yep it's a credit agreement & you can include it.

[ladylumps45]

thankyou very much for all your help.

[loobyloo85]

A lot of companies will make it sound as though the loans are secured against household items, such as sofas, computers etc, especially HFC. This is a way for them to get the payment from you, as if not you would be left thinking that these items would be takena way from you. In actual fact as stated in the above posts, 9 times out of 10, loans are not secured on household items, therefore this would not be taken away in bankruptcy, and your full loan would be included.