Possible Bankruptcy But Have Property Portfolio??

ianian99

why dont you sell the properties and pay your debts and you wont need to go bankrupt

LilyBart

Unless they're in negative equity, which an awful lot of properties are.

JCS1

dannyboyracer wrote: »

comments re how much you make is irrelevant as already posted by other users, the £2700 may seem like a lot but my car alone costs me in excess of £1k a month.... house food entertainment etc you can see where its going.

again though were going from the path... does anyone know of anyone or has personal experience with going BR and the after effects with investment property - how much you guys wana bet max gets another 2 cents worth in here :-)

Danny,

I've already told you what will happen regarding your partnership and investment properties, I used to work for the Insolvency Service so what I am telling you is correct.

Your outgoings are important here with regard to Bankruptcy, the OR will not allow you £1k per month on your car, neither will they allow money for entertainment - only reasonable domestic needs are considered. Your surplus between what the OR will allow you to spend each month on your outgoings and your income will be paid to your creditors via an Income Payments Agreement.

As your case is complicated as covers sole trader, partnership and numerous properties, please take advise from business debt line and go through your options. They will also talk you through a DMP, IVA and Bankruptcy, as with your income a DMP or IVA may be more appropriate than BR.

Please pm me if you need anything else.

dannyboyracer

some very good advise from everyone, many thanks... i know the 1k car is excessive, it was bought last year when money was good... i am in the process of selling, its on autotrader as well as piston heads - red corvette c06... again though anyone who buys a 6 litre v8 in these times must be mad or willing to loose a lot in depreciation! Its been on for a few weeks, just get dreamers ringing up asking to test drive...

with regards my lifestyle i have turned it down significantly but maybe i need to take a lodger on in the spare room to help share bills / expenses with? main prob still stands with the ticking time bomb of the last project which incidentially is not in my mind classified in the original 11 properties as it is an unfunished project i.e. i have not yet exited the bridging finance... it is however another house.

what are the implications if i just decide to hand the keys back on the last project, it has positive equity still left in it? will any shortfall from auction just be added to my unsecured debt or can i secure it against another one of my houses to give the company extra security?

re advice to sell up and pay everything back - thats a bit of a no brainer and i would love to if it wasnt so hard at the minute and if all werent in neg equity... if you know anyone wanting 11 properties though around the leeds area all 5 - 6 bedders give me a bell ;-) ill even give you commision for the sale.

adouglasmhor

Well done on taking steps. Nice to see you haven't got your head in the sand, hope it goes well for you and you get something sorted out with the last project.

maxmycardagain

dannyboyracer wrote: »

again circumstances aren't fully known so ill explain... the £1750 taken against the £4000 lost at present is not a debt as it stands as its being offset against the profit i made in the project, interest is accumulated on a rolling basis so no payments are necessary... ergo i do still make £3k a month less the £300 loss from the other 2. my prob is i cant get rid of the rolling interest one cos i a) cant sell it as no1 is looking for HMO's at the minute and b) cant get a mortgage on it... ive got a few months left of profit still in it before it becomes a real prob, once there is no equity left the company will no doubt stop the rolling interest and seek that i start making payments towards it.

seems like a slight bit of jealousy from a few of you especially you there max re i hope you loose the lot, sorry that you had to mate but im different, i came on here for advice... i will win in the end, im one of the annoying people that always do.

incidentally i met richard branson a few years back at twickenham, a family member of mine used to play for the rugby team and i met him whilst having drinks with the players after the game - top bloke is richard, he took a gamble taking on virgin atlantic... showed me at the time that sometimes you gotta take chances in life otherwise youll never distinguish yourself from everyone else in the street.

comments re how much you make is irrelevant as already posted by other users, the £2700 may seem like a lot but my car alone costs me in excess of £1k a month.... house food entertainment etc you can see where its going.

again though were going from the path... does anyone know of anyone or has personal experience with going BR and the after effects with investment property - how much you guys wana bet max gets another 2 cents worth in here :-)

why did you ask about bankruptcy?

RecoveringAlcoholic

red corvette c06... again though anyone who buys a 6 litre v8 in these times must be mad or willing to loose a lot in depreciation!

The Party is Over.

It is now Hangover time.

dannyboyracer

If you read this entire thread max you will see that im trying to get advice and personal experiences / stories from people who are BR and may have done so with a portfolio of properties WHY.... and i feel like i need to spell this out to you sorry if i am being slightly patronising - cos i myself have a portfolio of properties and due to my last project which isnt a prob just yet but potentially will be in the future, im considering my options early as BR MIGHT be an avenue that i may have to go down.

I hope that helps buddy ;-)

custardy

but from reading this its 'seems' you have no need to go BR
yes you may lose money but as it stands it looks like you could sell up either in full or partially to address your debts
you can hardly expect to go BR and retain a property portfolio and leave your creditors the 'scraps'?

dannyboyracer

Ive just been reading over this entire thread to see whether i have in fact missed something... only thing which has made me smile is you Max - obviously your a "Fantastically Fervent MoneySaving Super Fan" as per your profile prob meaning something along the lines that you devote your life to this site and spend many hours on here giving others advice about your own personal experiences...seeing as you are a well known ex BR.

Max starts this thread with not only trying to insult my business refering it to being more sinkable than the titanic but also then goes on to sheepishly remark that my tenants are nothing but cash cows in my eyes and obviously think im something im not - all this from a guy who has never met me nor knows much about my business apart from what ive chosen to disclose which at this stage of the thread is not very much.

Others later give comments like "why dont you try sell Dan" which could be good advise depending on how you look at things and depending on my circumstance which we are still discussing... he / she then gets a rather sarcastic reply from max something along the lines of "yeah dead good advice love in a freefalling market and amidst a credit crunch"... nice one max, obviously sacracism does become some people?

I then go on to say that im trying to find other work after my building business went pop and have enrolled at the local uni - fingers crossed i may have a pretty good placement with a company called Bovis... max's next reply.... HA HA Bovis share prices have gone down like a X %.... again nice one max, truely constructive advice on a help forum when your suppose to be some sort of a help guru according to your status - helpless more like it.

I then say "All you need to survive is shelter, food and your health..." trying to ease the spirit of the thread... max comes back and then goes off on a tangent somewhat about "ergo" something or other. At this stage I think hes been watching the scene with the architect from the matrix one to many times or perhaps is tyring to see how many times his newly learned word can be fit into a sentence in any one time ;-)

Max's next advice... !!!!!! are you winging about.... "i hope you loose the lot" followed by a bunch of silly little men cheering with their hands. Again super help and contribution to those who come on for a civilised and adult chat with others in a similar situation.

The list goes on and on, im sure if you read other threads youd see him in a similar light... Just read through this thread for yourself and make your own mind up about our friend then "Fantastically Fervent MoneySaving Super Fan".

My oppinion is that max is some bitter twisted BR who obviously feels better trying to put other down, kinda like a school yard bully - again your mom would be proud - no jokes this time but a he he never the less.