bankruptcy advice pls!!

markymark36_2

hi i have decided that bankruptcy is the only option and have been advised ont this also my partner and i owe approx £800 in utilitiy bills electric and gas but the debt is in both our names would i be able to put this into my petition or only half of the amount as it is only be going bankrupt and not my partner and is it advisable to open a basic account before going bankrupt as i wish to close my current building business down and then restart again any help advice would be greatly apprec thanks mark

DON79

Hi markymark, welcome,

have you taken advice from National Debtline or CCCS or CAB? If so that is good.

Re the gas bill, if it is in joint names, I believe if you go BR, your OH will be liable for the full amount owed, not just 50%. When joint debts are included in BR, the other party becomes fully liable after the other person has been declared BR.

You can open a basic account now but make sure it is with either the COOP bank or Barclays as they are the most BR friendly.

Hope this helps a little.

markymark36_2

Hi DON thanks for the advice yes i did take advice but it was from business debt line as my debts mainly from the business and some personal are in excess of 70k the only option was br so would you recomend settling the gas and electric bill prior to br as i am currently only working a few days here and their as jan is always quite in the building do you think that the or will be happy for me to start back up again as we have some potential lg extensions coming up but at the current moment in time i cannot service the debts that i owe im just keeping head above water also paying my share of the morgatge on my ex wifes house as we have 2 kids will the or allow me to keep doing this as well as paying my own rent any help and advice would be most welcome

DON79

Hi, if you do settle the gas bill down, it may look like favouring a creditor over some others. maybe you could get your OH to pay it if they are not going BR and it can be afforded? not coming from you then. but the OR may ask questions about it if the money comes out of a joint account or your account or business account as to where that money went.

some on here have had arrears wiped by BR and stayed with the same supplier so it is possible but depends who you are with and whether they will thereafter insist on a prepayment meter being installed.

I don't think that you will be able to put down the mortgage payment on your soa as well as rent, if you do want to keep paying that, it would need to come out of any surplus income after all other expenses on your soa and after any IPA too.

Hope this helps.

markymark36_2

hi don thanks that helps my current partner is not going br just me so am i correct in thinking that im entitled to surplus monies after i have paid my necessary day 2 day bills ? my only cncern when i fill out the froms is how do i give an accurate account of my incomings as they can vary dramitically from month to month as all my recent wok has been paid for in cash and then i have paid all bills that way as all my accounts are overdrawn so i have not used them for the last 9mths or so i have paid some of my trade accounts in cash when i get my monthly statement as i have been advised that if i wish to carry on trading after br i need some form of trading facility even though i have paid these suppliers before any one else but debtline advised that i could argue that case with the or as it is in everyones interest fro me to carry on trading sorry to take up your time just need soem friendly advice thanks again mark

DON79

if when you complete your soa - (do this at www.makesenseofcards.com when the time comes and post it here for advice) - after all household and other expenditure, you have a surplus income left and depending how much is left - the OR will be entitled to take a share of that surplus income upto a maximum of 70% and the remainder is yours to do what you please with.

you would need to try average out what your income is over the past few months and put that down, not easy really when the income varies from month to month though. you are right that it is in the OR's interests for you to carry on work and business expenses need paid in order to do this.

Donna