Ask a StepChange (formerly CCCS) counsellor a bankruptcy question

yknivag · 27 June 2014 at 11:14AM

StepChange_Private_Messages wrote: »

Hi there Gavin, thanks for getting in touch.

1. If the OR suspects a valuable asset has been sold for less than its true value then they may look to reverse transactions and sell the asset. It’s hard to know exactly what the decision will be in your case but I’d recommend giving as much information as possible and being up front about it all, then the OR will be able to give you their decision.

2. The same principle applies with the car. If you’ve been repaid for the car by having your living costs supported by your partner then I suppose that’s a kind of payment but it might be hard to prove this to the OR. Again, I’d recommend giving as much information as possible to the OR about the arrangement with the car.

Hope this helps

Best regards

Rachel

Hi Rachel,

Many thanks for your reply and apologies for my delay in picking it up.

It seems from your reply (and others I've had on other forums) that ultimately this will be down to the OR's personal judgement and couldn't really be predicted beforehand.

I seems it's just a case of providing as much detail and evidence as possible and then crossing my fingers.

Kind Regards,

Gavin.

tiggy748_2 · 27 June 2014 at 3:40PM

I run a very small (just myself) company teaching childbirth classes. I started it in January this year. So far I have earnt about 2000.
To promote my company i ran a show. It wasnt a suscess and the stand sholders are angry. Some have threatned court action. The largest stands was £130 and the smallest stand was £25, if they grouped together and won I would have to pay back £2150. I have no money to do this. The company is Ltd.

I have taken advice and it doesnt look like im in the wrong, however know what justice is like, so im not taking chances.

If i lost, the company would go bancrupt. Im assuming here that this would mean i dont have to pay anything to the stand holders.

Howeve id like to know who it will affect my running another company. I have learning difficulties and the only way for me to earn anything is self employed.

I have spent a lot of time ad money training to do what i do , i dont want to do somethig else, but its quite specailised. I promote my company by attending events.

I estimate i would earn around 10K a year - i cannot afford to pay someone else to market the company, nor would they have the skills to talk about the products to women at events. I do not need any credit to run.

i think my questions are:
How would i "restart" my company
Can i keep my current company name, or do i have to change it, if i chnaged it can i still keep my colours/branding in tact?
I assume i can keep on teaching my classes, or would this come under "managing" a company?
How do i go about getting permission for the court to allow me to promote my company and run it? what are the exceptions that might allow me to do this?

Thanks

StepChange_Private_Messages · 27 June 2014 at 4:28PM

tiggy748 wrote: »

I run a very small (just myself) company teaching childbirth classes. I started it in January this year. So far I have earnt about 2000.
To promote my company i ran a show. It wasnt a suscess and the stand sholders are angry. Some have threatned court action. The largest stands was £130 and the smallest stand was £25, if they grouped together and won I would have to pay back £2150. I have no money to do this. The company is Ltd.

I have taken advice and it doesnt look like im in the wrong, however know what justice is like, so im not taking chances.

If i lost, the company would go bancrupt. Im assuming here that this would mean i dont have to pay anything to the stand holders.

Howeve id like to know who it will affect my running another company. I have learning difficulties and the only way for me to earn anything is self employed.

I have spent a lot of time ad money training to do what i do , i dont want to do somethig else, but its quite specailised. I promote my company by attending events.

I estimate i would earn around 10K a year - i cannot afford to pay someone else to market the company, nor would they have the skills to talk about the products to women at events. I do not need any credit to run.

i think my questions are:
How would i "restart" my company
Can i keep my current company name, or do i have to change it, if i chnaged it can i still keep my colours/branding in tact?
I assume i can keep on teaching my classes, or would this come under "managing" a company?
How do i go about getting permission for the court to allow me to promote my company and run it? what are the exceptions that might allow me to do this?

Thanks

Hi Tiggy,

Thanks for posting. We specialise in giving advice to individuals going bankrupt rather than companies, so your questions are a little bit outside our area of expertise.

I've done a quick internet search and found this page from the government about winding up a limited company which might be useful: https://www.gov.uk/closing-a-limited-company.

There's also an organisation called Business Debtline which might be better placed to give advice: http://www.bdl.org.uk/.

All the best.

Kind regards

James

credit_crunch · 30 June 2014 at 10:22PM

Hi
Are you able to advise homeowners in Northern Ireland?
I know the legal system differs slightly in certain areas, and my query also involves owing money to Northern Ireland CO Ownership housing?

Thanks in advance

egrescrimp · 30 June 2014 at 11:22PM

credit_crunch wrote: »

Hi
Are you able to advise homeowners in Northern Ireland?
I know the legal system differs slightly in certain areas, and my query also involves owing money to Northern Ireland CO Ownership housing?

Thanks in advance

http://www.stepchange.org/DebtadviceinNorthernIreland.aspx

StepChange_Pavan · 2 July 2014 at 3:19PM

credit_crunch wrote: »

Hi
Are you able to advise homeowners in Northern Ireland?
I know the legal system differs slightly in certain areas, and my query also involves owing money to Northern Ireland CO Ownership housing?

Thanks in advance

Hi there,

I know you've already seen the helpful link above, but just to confirm you can call our Helpline and we will be able to advise you.

Kind regards,
Pavan

ginjan_2 · 3 July 2014 at 6:40PM

hi im in a situation where i dont know where to turn or what to do. me and my husband are in about£20.000 debt. credit cards ,store cards and a personal loan we are really struggling and our bank has adviced us to get a IVA do u think this is wise.

System · 4 July 2014 at 2:38PM

ginjan wrote: »

hi im in a situation where i dont know where to turn or what to do. me and my husband are in about£20.000 debt. credit cards ,store cards and a personal loan we are really struggling and our bank has adviced us to get a IVA do u think this is wise.

Hi Ginjan,

Welcome to the forum.

Please don't get an IVA before getting some free, impartial debt advice – it won’t cost you a penny and you’ll know exactly what you should do next.

We can build a budget for you and give you a personal action plan with clear next steps advice. We can then offer you the debt solution that’s best for you. We run IVAs as well as other solutions like fee-free debt management plans.

You can call us on 0800 138 1111 to speak to a debt advisor in confidence or use our confidential online debt advice tool – Debt Remedy.

Get in touch and we’ll be able to give you the advice you need.

Take care,
Jess

PatrickMcCann · 5 July 2014 at 11:53PM

Hi

I have taken advice and have been told that Bankruptcy is my best option

The only thing that is holding me back is the favouritism to creditors issue.

I have consistently borrowed money from friends and family to help me to get by. These are generally small loans (£50 or less) but some have been for hundreds to pay bills.

All of my loans to friends have been repaid but I am afraid that the OR will consider this favouritism to creditors and try to demand the money from my friends and family.

My friends are telling me that I'm over thinking things and that the OR would not spend time looking through my statements to follow the pattern and work out how much I have repaid to each friend to try and get the money back from them.

Can you clarify what happens in this situation please

Many thanks

Patrick

Former_StepChange_Rory · 7 July 2014 at 12:15PM

PatrickMcCann wrote: »

Hi

I have taken advice and have been told that Bankruptcy is my best option

The only thing that is holding me back is the favouritism to creditors issue.

I have consistently borrowed money from friends and family to help me to get by. These are generally small loans (£50 or less) but some have been for hundreds to pay bills.

All of my loans to friends have been repaid but I am afraid that the OR will consider this favouritism to creditors and try to demand the money from my friends and family.

My friends are telling me that I'm over thinking things and that the OR would not spend time looking through my statements to follow the pattern and work out how much I have repaid to each friend to try and get the money back from them.

Can you clarify what happens in this situation please

Many thanks

Patrick

Hi Patrick

The Official Receiver will ask you to disclose any preferential payments made in the last two years on the form but they can go back further if they decide to.

A preferential payment is usually when you've borrowed money and then paid these back as more of a priority than other debts which I can understand can be quite common.

It’s always the discretion of the Official Receiver as to whether or not they will see those payments as being preferential and they will look at any negative impact this might have had on payments to the rest of your creditors.

It might also be worthwhile contacting the Insolvency Service for more information on 0300 678 0015.

I hope that helps.

Rory

Ask a StepChange (formerly CCCS) counsellor a bankruptcy question

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