Debt advice needed please, bankruptcy, IVA etc.

tonym_dj

Hi All,

I have a bit of a problem. I have accumulated about £28k worth of debt, some from credits cards going way back to when I was student but most because I put it into my business. As well as being registered as self-employed I'm also a Director of a company which although has taken scraps is largely dormant until the launch in the coming weeks.

The problem I have;

After 2 years of being self employed I've barely broken even and any money I seem to make goes towards paying off debt.

I haven't got into to trouble with missing payments etc. But it's very difficult to live on nothing, I've looked at the various things online about IVA's and Bankruptcy but I'm not sure if I would be considered for either as I'm not technically in trouble with creditors.

The work I'm currently doing is due to dry up within weeks and I'm worried how I'm going to pay my debts.

I currently live at home and have no assets to speak of other than a pc and a laptop which ideally I would like to hang onto as it's my tool of the trade.

With regards to my limited company it's slightly in profit and has no debts, however, if I was to go bankrupt what would happen to this business as it's profitable, could I transfer it to a family member and just lose what I put into it or would I lose the whole thing?

I'm sure the limited company will be very successful as early sales show great potential but creditors don't tend to act on ifs and maybes.

Any help would be much appreciated!

Deep_In_Debt

Hi
Welcome to the board.

I'm not a fan of IVA's. They are only suitable if you have assets to protect such as property as you would be expected to release equity in year 4. Also, you are stripped back to the bare minimum with little or no flexibility and a lot can happen in 5 years. If you miss a payment you could be declared BR anyway having paid out thousands in fees to your IVA provider first. Please do think very carefully before going down that route.

Please contact one of the debt charities who will offer FREE, impartial adivce - CCCS, National Debtline or CAB.

Good luck.

RAS

Welcome

See here for contact details

http://www.moneysavingexpert.com/loans/debt-help-plan#help

Do not use a fee paying advisor and you could ring Busness debt line for advice on the company.

tonym_dj

Many thanks for your help.

I will call these charities first thing.

Thanks again!