Bankruptcy, is it the answer ???!!!

mr-p

Hi my name is Jeremy and I am at a point I need answers to my debt problems. Well here goes:
I am self-employed and fit Kitchens and Bathrooms. It has been quite successful (until now!). Things started getting tough about 2 years ago when I employed someone and it started to drain the finances so I had to let him go, then my wife's business started to suffer so I helped out as much as I could (financially), then we got married (stupidly expensive wedding, all my fault, but wouldn’t change that, lovely day and fond memories !!!). To top all that my wife then had to declare herself bankrupt about 6 months ago so I have had most of the financial burden, with 3 kids and a rent of £850 pm along with the other bills. Then just to kick me whilst I am on my knees, I subcontracted to MFI where I got most of my work from and we all nowhere they have gone now. Trying to fill that gap is not looking good, word of mouth only goes so far and fast and advertising is sooo expensive when you have little funds.
So here I am, I have £44,000 debt and cannot chip away at that and keep the home as well. Work is very slow and I need to go on benefits here and there when no work. I have 11 creditors chasing me and nowhere to turn. I have been advised that an IVA would be no good as I cannot commit to a regular payment due to the sporadic work. I am not worried about going bankrupt as my credit history is rubbish, however although we are renting, I am trying to buy this house and worried that it would affect that. Is there any way to buy it now and keep it ?
Also, initially when I started my father took out a loan so I could buy a van. I am 1 year from paying it off. If I were to go bankrupt how would that effect my father, the van etc. I would want to continue trading although under a different name of course so would the receiver have a say in all this?

WHAT ARE THE ANSWERS, PLEASE HELP?

tigerfeet2006

Hi and welcome to the board. The first thing you must do is get some professional advice from someone like Business Debtline (number and link in my sig.)

mr-p wrote: »

Hi my name is Jeremy and I am at a point I need answers to my debt problems. Well here goes:
I am self-employed and fit Kitchens and Bathrooms. It has been quite successful (until now!). Things started getting tough about 2 years ago when I employed someone and it started to drain the finances so I had to let him go, then my wife's business started to suffer so I helped out as much as I could (financially), then we got married (stupidly expensive wedding, all my fault, but wouldn’t change that, lovely day and fond memories !!!). To top all that my wife then had to declare herself bankrupt about 6 months ago so I have had most of the financial burden, with 3 kids and a rent of £850 pm along with the other bills. Then just to kick me whilst I am on my knees, I subcontracted to MFI where I got most of my work from and we all nowhere they have gone now. Trying to fill that gap is not looking good, word of mouth only goes so far and fast and advertising is sooo expensive when you have little funds.
So here I am, I have £44,000 debt and cannot chip away at that and keep the home as well. Work is very slow and I need to go on benefits here and there when no work. I have 11 creditors chasing me and nowhere to turn. I have been advised that an IVA would be no good as I cannot commit to a regular payment due to the sporadic wor I would not recommend an IVA either in your situation.. I am not worried about going bankrupt as my credit history is rubbish, however although we are renting, I am trying to buy this house and worried that it would affect that. Is there any way to buy it now and keep it ? No one in this climate will offer you a mortgage with unreliable wages and being BR or about to go BR
Also, initially when I started my father took out a loan so I could buy a van. I am 1 year from paying it off. If I were to go bankrupt how would that effect my father, the van etc. I would want to continue trading although under a different name of course so would the receiver have a say in all this? Your father is the owner then as he got the loan to buy it? If so the van does not belong to you and the OR can't take it from you but can allow expenditure as it is a vehicle you have use of. As the loan is not in youe name the OR will not make provision for it on youe SOA. You will have to find the money from any surplus you have. You have to continue trading in the name that you go BR in.

WHAT ARE THE ANSWERS, PLEASE HELP?

Would you not be better off jacking in the business and going on to benefits. You would probably be able to get help with the rent.

mr-p

Many Thanks for your comments Tigerfeet.
Would you mind elaberating on a couple of things?Your father is the owner then as he got the loan to buy it? If so the van does not belong to you and the OR can't take it from you but can allow expenditure as it is a vehicle you have use of. As the loan is not in youe name the OR will not make provision for it on youe SOA. You will have to find the money from any surplus you have.
Even if the van documents are in my name ?
You have to continue trading in the name that you go BR in.
Are you sure as when my wife went bankrupt the OR told her she could not trade in her business name ?

mr-p

Originally Posted by mr-p
Many Thanks for your comments Tigerfeet.
Would you mind elaberating on a couple of things?Your father is the owner then as he got the loan to buy it? If so the van does not belong to you and the OR can't take it from you but can allow expenditure as it is a vehicle you have use of. As the loan is not in youe name the OR will not make provision for it on youe SOA. You will have to find the money from any surplus you have.
Even if the van documents are in my name ?

If you look at the the DVLA documents it actually says that the registered keeper is not necessarily the legal owner of the vehicle or words to that effect. Your father bought the vehicle with the loan he took out and is in his name, so he is the legal owner.

You have to continue trading in the name that you go BR in.
Are you sure as when my wife went bankrupt the OR told her she could not trade in her business name Now you have made me doubt myself, as far as I remembered you couldn't change your name when you went you were BR and had to trade in the name you went BR in or had reference to it in your new name. When you talk to BDL double check with them. Also put a query to my answer on your thread, someone will know for definate.?

mr-p

He took a personal loan in his name and gave me the money to buy it. I have paid him through a standing order for 4 yrs so would that be proof enough that he brought it ?

DON79

Can you get a copy of the loan agreement? Did you pay the payments direct to him or to the actual loan? There ought to be some sort of electronic trail but if he has an actual receipt in his name for the car purchase that would be good.

mr-p

Hi Don, no I purchased the van with the money he gave me, so reciept in my name. I paid a standing order from my account into his account (loan account) so the would be a trail there.

tigerfeet2006

Right then that puts a different slant on the matter. As the reciept is in your name you are the legal owner of the vehicle. How much is it worth?

fiveyearplan

If the receipt is in your name then I think it does belong to you. How much do you pay him per month. You have 12 months left is that correct?

If you do go BR you would not be able to continue paying him (at least not to the knowledge of the OR) you could pay him out of any surplus you have though. Has your wife been discharged from BR yet?

Could your dad give you a little payment holiday?

mr-p

Prob worth around £3500-4000. I know I am legal owner, but what I dont want to do is have my dad listed as a creditor and leave him with the loan. Could I pay it to him discreatly after going bankrupt. (oh, I pay £254 pm, loan finishes in Feb next year).

mr-p

Not sure about the payment holiday, but I do like the idea of paying him discreately. I want to be honest with the OR as dont want any problems. The wife was totally upfront with them and has had no problems and has had a letter a month ago saying they are considering discharging her but dont know when. She went BR in July 08.