Help, getting more confused by the minute!

flowergirlgush

I have been considering bankruptcy for a while and now feel it is the way forward as i can no longer keep juggling everything, i am just a little confused as i am self employed and am wondering what the implications are as it is not my business which is in any particular trouble, just myself due to my ex dumping me with all debts:

credit cards x 3 £13k, have stopped paying
ex marital home, mortgage 500k, cant pay this monthly payment 2150 plus arrears.- valuation £580k
home i rent out 133k mortgage, monthly payment of 750, rental income 416, shortfall 334 each month
House i now live in, £83k mortgage, monthly payment of 420, always paid up to date.

My business pretty much looks after itself and pays all bills on my current home and living expenses, however i have been taking more out to try and pay debts which i have concluded is just not an option anymore. Will i be allowed to continue trading? or i will have no means of income.

I did have a sale on the marital home but it fell through so cant see any point in trying to continue paying mortgage (which my mum has been helping with )

Will they take my home i live in off me if they got the other 2 to go at or will they more than like attach a notice to it if i sell it, dont fancy moving again and the mortgage is same as renting somewhere or less and i have pets too.

Also the house i rent, what will happen to that, as i am self employed it is classed as an income so will they take that as it goes through the business.
What will happen to tenants etc

Also the 2 houses are for sale too so what happens to them regarding sales and estate agents?

And also my car which is HP through business and i need for work/deliveries etc, will they take that off me?

Oh and last thing, i am in middle of divorce, will i be able to continue with that as i have a private solicitor?

Any help much appreciated!

Richard_S

flowergirlgush wrote: »

I have been considering bankruptcy for a while and now feel it is the way forward as i can no longer keep juggling everything, i am just a little confused as i am self employed and am wondering what the implications are as it is not my business which is in any particular trouble, just myself due to my ex dumping me with all debts:Bankruptcy won't have any serious implications on your self employment. There are regulations about credit, both trade and personal, but they're not too restrictive.

credit cards x 3 £13k, have stopped paying
ex marital home, mortgage 500k, cant pay this monthly payment 2150 plus arrears.- valuation £580k
home i rent out 133k mortgage, monthly payment of 750, rental income 416, shortfall 334 each month
House i now live in, £83k mortgage, monthly payment of 420, always paid up to date.

My business pretty much looks after itself and pays all bills on my current home and living expenses, however i have been taking more out to try and pay debts which i have concluded is just not an option anymore. Will i be allowed to continue trading? Yes, the O.R views self employment in the same way they do paid employment. If you choose to stay in the house you're living in at the moment then your income and expenditure will be documented, and a percentage of any surplus will be paid to creditors in the form of an IPA over 3 years. or i will have no means of income.

I did have a sale on the marital home but it fell through so cant see any point in trying to continue paying mortgage (which my mum has been helping with )That really is throwing good money after bad if you ultimately declare, or are declared bankrupt. I don't know the details of your financial situation but there really isn't any good reason to go any further down that route.

Will they take my home i live in off me if they got the other 2 to go at or will they more than like attach a notice to it if i sell it, dont fancy moving again and the mortgage is same as renting somewhere or less and i have pets too. Was this house bought with some form of commercial mortgage? Is there any equity in it?

Also the house i rent, what will happen to that, as i am self employed it is classed as an income so will they take that as it goes through the business.Are you self employed as opposed to trading through a Ltd Co.? Whatever your trading status it will form part of your estate, and if it's an asset it'll be sold, or if it's a liability it'll be written off in your bankruptcy.
What will happen to tenants etc It depends on who the house is ultimately sold to, but if it's generating income, then the O.R won't be in a hurry to evict them.

Also the 2 houses are for sale too so what happens to them regarding sales and estate agents?Any estate agents, and legal fees will be deducted before the sale proceeds are forwarded to the bank or building society.

And also my car which is HP through business and i need for work/deliveries etc, will they take that off me?That depends on its value and whether you could contiinue to trade with a cheaper alternative. It also depends on the level of the payments and the amount of time remaining on the lease.

Oh and last thing, i am in middle of divorce, will i be able to continue with that as i have a private solicitor?Phew, I'm not sure, but I'd imagine any legal fees for the divorce would be paid from the disposal of former matrimonial assets.

Any help much appreciated!

Hi flowergirlgush,

Your situation is quite complex, and you really would benefit from advice from the Business Debt Line; their contact details are in my signature.

Please contact them as soon as you can. You'll find all the clarification and support you need on here, but we're not qualified advisors, and it's impossible on a forum like this to get a proper grasp of complex issues.

Best regards

Richard

flowergirlgush

:rotfl: Thanks for the helpful advice, i am quite bogged down as i have quite a lot going on.

The house i live in now was a self certified mortgage i managed to get over a year ago when i left my husband, my mum gave me 15000 toward the deposit as i think it was 25% or 30% (paid 117500 for house and think the mortgage is for 83k or thereabouts) so yes there is equity in it but i can prove my mum gave me 15000 so surely she has a say on some of the equity???and it wont be worth what i paid for it in todays market.

I am actually thinking of letting the houses get repo before i consider going bankrupt now as they may clear their debt, or near enough. Stopping paying the mortgages though, but just keeping up to date on the one im living in which has no arrears at all.

The tenants in the rented house, i assume i should serve them notice or they will get evicted? is that the right thing to do?

I am not a ltd company.

Also i think i forgot to mention there is a 42k secured loan on the largest mortgage too, the farmhouse. I assume they can do nothing about the repayments on this loan until the property has been sold and it becomes unsecured? i have not been paying this either as it is another @£400 per month! and as the property is gettin repo anyway i dont see the point.

Good to hear they will allow me to continue trading.

Many thanks for any advice, it helps keep me sane!:D

tigerfeet2006

Sorry Flower not too good with houses. Unfortunatly a few of us are away tonight but I am sure that you will get some help with this soon.

Hope you get things sorted (((hugs)))