Help

djgavt

Hi All,

I am thinking of declaring my self bankrupt but I have a few worries about doing so.

Firstly I run my own small business and I rent a van every month from a car hire firm. Will I still be able to do this after declaring my self bankrupt? I can not work with out it and it is also my only form of transport. I use a pre paid credit card for doing this so I am not borrowing money will I also be ok to carry on using that?

Will my nationwide basic flex account be frozen and shut down?

I have been told that tools and equipement that i use for business can not be touched is this true?

Thanks for your help

G

fiveyearplan

djgavt wrote: »

Hi All,

I am thinking of declaring my self bankrupt but I have a few worries about doing so.

Firstly I run my own small business and I rent a van every month from a car hire firm. Will I still be able to do this after declaring my self bankrupt? I can not work with out it and it is also my only form of transport. I use a pre paid credit card for doing this so I am not borrowing money will I also be ok to carry on using that? I've had no problem renting a van wth a firm I used pre BR. As I'm already a customer they never do a credit check. Does your place do a credit check when you hire it?

Will my nationwide basic flex account be frozen and shut down? Yes, open a Coop or Barclays, personally I think the Coop account is better account because it comes with a debit card.

I have been told that tools and equipement that i use for business can not be touched is this true? They should be fine.

Thanks for your help

G

Hi and welcome! Ask away if you have any other concerns. Have you had any advice from one of the debt charities? You should do so. CAB, CCCS or National Debtline. I'd phone sooner rather than later as they are quite busy at the moment.

djgavt

No they never credit check me. I'm not worried about the company that i hire the van from. I am worried that the OR might say 305 pounds a month for hiring a van is to much and i have to stop. Which means i would loose my only income and my business.

Merry_Gentry

djgavt wrote: »

No they never credit check me. I'm not worried about the company that i hire the van from. I am worried that the OR might say 305 pounds a month for hiring a van is to much and i have to stop. Which means i would loose my only income and my business.

The OR wants to keep you working, so it's not likely they would do that to you. Best phone the free advice numbers and clarify all of this

djgavt

One more quick question. Can you include moneys owed on tax and N.I in your BR?

I will call one of the numbers later today.

fiveyearplan

That will become a business expense. Why don't you post up the following:

• income from all sources ( as for your self employment, just a rough idea)
• Personal expenses
• business expenses

When you are filling out the BR forms you will deduct business expenses before you list your income - you wouldn't have that income without the expense.

Once you give the information above we can give you some better advice.

fiveyearplan

Yes, they get included in bankruptcy!

djgavt

Its not a business expense as its my personal tax bill. My business does not qualify for VAT.

Will i be ok to keep my current t mobile mobile phone contract?

Should i open a basic bank account with the co op before i go BR or after?

fiveyearplan

Sorry I meant the van is a business expense. I think our post crossed! The tax will go into your BR.

fiveyearplan

If you are up to date on your contract you should be able to keep your phone. That's why I said to pop up your income and expenditure on here and we can let you know what you can and cannot put down.

Definitely get the bank account opened before BR. That is the advice I always give and just today someone didn't take that advice and their wages went into bank and were frozen. They got them back but it took a lot of hassle and unnecassary stress. Besides Coop and Barclays are inundated with requests for opening those type of accounts so it is taking a bit longer than the 2 days it took for me to open my account last November!

Merry_Gentry

fiveyearplan wrote: »

Definnitely get the bank account opened before BR. That is the advice I always give and just today someone didn't take that advice and their wages went into bank and were frozen. They got them back but it took a lot of hassle and unnecassary stress. Besides Coop and Barclays are inundated with requests for opening those type of accounts so it is taking a bit longer than the 2 days it took for me to open my account last November!

Not necessarily the best advice. We opened our cashminder accounts before going BR and the OR froze them. The Co-op were happy for them to operate, but our OR said that any accounts operated prior to going bankrupt belonged to them and we HAD to close them. Caused untold amounts of hassle (still is unfortunately :rolleyes: ). Also bear in mind that apparently the Co-op are no longer accepting accounts from people who owe them money upon going BR, so if they or any of their banks are part of your BR then you won't get a Co-op account.

Sorry to seem so doom and gloom - it would seem my OR was being a bit of a pain, but I just wanted to warn you it could happen.