Im desperate for advice needed on bankruptcy

hillway

Im desperate for advice needed on bankruptcy ,

Ok here goes… I need to know if going bankrupt would help my situation…and where I stand


Due to circumstances I cannot afford now to keep up payments on various properties and loans credit cards as you can see below.
im in arrears on all of the above.

I have a joint mortgage myself with now ex partner with NR ( 165 k ) house is worth 160 k ( with 20k secured loan ) so about 25 k negative equity on the property - my ex partner doesn’t pay a penny and has walked away from house.
Leave me with a mortgage which is currently over 1150 a month on its own.

I have unsecured car loan… for 7 k about 220 pcm

Credit card 4.5 k . for 70 month

Bills etc are obout 400 a month

Child maint is 400 a month

I trade as a ltd company in IT – and draw down salary as dividend and expenses. I earn around 2 k a month my debts are more now than what I earn !

I have 2 other BTL properties with friend both with 90k mortgages and have around 10 k market value in both equity .

My question is this I need to know if going bankrupt would help my situation –

Can I just walk away from all of this the house / credit card / loans is BR my way out –

Id like to walk away completely and start a fresh again. Any advise appreciated.

d123

Pretty sure you could (I'm sure the experts will be along in the morning with more advice).

And it will really have to be a fresh start, as the OR will close your existing business, you would have to set up as a sole trader after being declared BR. I dont think you can be ltd again, or even a director in someone elses company while undischarged.

It might be worth your while phoning one of the debt charities like CCCS and have a chat with them.

tigerfeet2006

Right the first thing you MUST do is get professional advice from one of the debt charities. Business Debtline might be the best for you, but it is always useful to get a couple of opinions. Numbers and links in my signature. If you don't do this the judge could refuse your petition until you have.

If you go BR any joint debts you have with your Ex and your business partner will fall wholly on them to pay.

As D123 says you won't be able to run a Ltd company.

Going BR is NOT an easy way out. This is going to be a rocky and stressful ride but it will be a new start for you to learn from your mistakes and start afresh.

Welcome to the forum

Debt_Monkey_3

Bankruptcy is a possibility. Have you discussed it with your friends that you own the BTL with or your ex-partner that is on your mortgage as it will affect them as well.

If there is a shortfall from the sale of your property owned with your partner, they will not pursue you for the debt as your part will be included in your bankruptcy, but they could still pursue your ex-partner.

In the BTL properties, the OR would calculate the equity and give your friends the option of purchasing your interest, £10k, or maybe less in current climate.

Child maintenance is not included in bankruptcy.

You would also need to switch the way you work / are employed, as you are not allowed to be a company director whilst you are an undischarged bankrupt.

So_Sad_Angel

Hi Hillway & welcome.

Judging by the time of your post I suspect another sleepless Sunday night.. most on here have been there!

Speak to the debt charities as already said & remember that on any joint loans, mtges etc the creditor will pursue the other non BR party for any shortfall as you will no longer be liable. This can be very difficult where the joint party is an `ex`.

You wll have to resign as key official in the Ltd Co so may be worth having chat with your accountant or Business Debtline.

Let us know how you go on.

Angelxx

hillway

thanks all for help , I have called all the nos below

CCCS 0800 138 1111 National Debtline 0808 808 4000 Business Debt Line 0800 197 6026

and found CCCS really helpfull they have set up an appiontment so ill let you know how I get on

looks like BR is my only option at the moment.

cheers all for help....!

tigerfeet2006

Well done on being proactive. Anything you want to ask about in the mean time just ask and someone is usually around who can help or point you in the right direction.

All the best

MollyBear

Well done hillway for making a decision to sort your finances out.
It can be hard going at times but not as hard as living in debt!!

Molly
x

hillway

ok just had meating via phone back from CCCS really helpfull - they have advised only 1 option and that is to go BR...

advised me I should stop paying , mortgage loans CC - and to get the money together for BR pettition also to get enough for rented accomodation.

explained I should first seek voluntry repossesion with my main residential home first before going for BR. with NR .

so just in process of writing to Nothern Rock to request.

Is there any advise at this stage u guys can reccomend ???? i know im in for a ruff time over next few months.

thanks again.....

dalip

hILL got no idea but welcome to the club.It will be a tough ride but worth it in the long run. D

StuntmanBob

hillway wrote: »

I trade as a ltd company in IT – and draw down salary as dividend and expenses. I earn around 2 k a month my debts are more now than what I earn !

You should be aware of this: as an IT consultant/contractor (which I presume you are) you must trade through a limited company OR use an umbrella. If you go BR you won't be able to trade as a limited company any longer (you will be disqualified as a director). Therefore you will have to use an umbrella. This is not necessarily a problem, but you should be aware of this. Self employment is unlikely to be an option in the IT sector (as I'm sure you're aware).

You might also consider that working in the financial services sector might be a problem, as might getting security clearance. These may not be an issue for you.

It seems to me that if you could ditch the properties and the car, you might be in a position to rent somewhere, get a cheaper car and avoid BR. I'm also facing BR at the moment, so I feel your pain.

However, for a £4.5k ccard debt, it does seem a shame to go BR. My own debts are well over £100k. However, on this matter you should of course take the advice of the professionals!

I found business debtline the most helpful (I spoke to National Debtline and CCCS), and given that you are in business, I'd give them a call too.