ASSETS IN BANKRUPTCY

PART 3 OF 4.

ASSETS SECURED CREDITORS ARE ENTITLED TO TAKE:
A secured creditor is one holding a security over your asset. Common examples of secured assets are.
-a house subject to a mortgage with a bank.
-a motor vehicle subject to a bill of sale.
-goods under hire purchase, chattel mortgage, lease or bill of sale with a finance company.
-real estate subject to a charge by local councils for outstanding rates.
A secured creditor cannot take an asset back just because you are bankrupt. However, if you fall behind in payments they can take and sell it whether you are bankrupt or not. If you are in doubt about whether one of your creditors is secured, you should first ask the creditor.
If you are still doubtful, ask a financial counsellor or your trustee.

WHAT HAPPENS TO ASSETS I USED TO OWN:

Your trustee will investigate assets you owned in the five years before bankruptcy. If they find that you have given away or sold assets for less than their market value, they may either recover these assets or the difference between the true value of the asset and the amount you received for it. Your trustee may also recover any assets that have been transferred for the purpose of defeating your creditors (including assets transferred more than five years before bankruptcy).