Does this sound ok for reason for bankruptcy

betterlife2009

I am having real difficulty in maintaining payment on my debts due to being self employed
I started my own internet retailer business on ebay just under 3 years ago.
I had no money to start up with so purchased stock on credit cards and catalogues.
My debts have gradually increased over the last 2 years and have got out of control.
I have tried to continue to repay my debts however Interest, charges and fees have been accrued monthly and sales and selling prices have been deteoriating monthly making this impossible to manage.
I have tried to negotiate with my creditors without success.
I have sought help from CCCS and bankruptcy is thier recommended solution

geministar2008

Hi Betterlife

I have recently gone BR and i had to buy some items on a catalogue to pay to live e.g rent and food this was around £700 worth of items.
When i had the official receiver interview i was warned that this is frowned upon, basically they do not like people buying goods to sell on credit if you have not paid for them.
I asked what will happen? She said it depends, they would flag the info up on my file and look into it. She said it depends on what amount was purchased. I stated under a thousand she said it may be ok as its pretty small fry and was for body and soul rather than buying a luxury car.

How much did you spend on goods in total?

I though why did i put that down for the reason i owed money to the 2 catalogues i could have put it was for clothing and household items. However it is defo best not to lie in you BR petition.
I guess just be honest and see what happens?

You will still be able to go BR but the Or may go for a BRU in which you would be bankrupt for longer.

I am glad my debt has gone regardless of the outcome!

Lets see what anyone else thinks on here.

betterlife2009

God i feel like sh** now

betterlife2009

I only wanted the business to work and had no money to start up with
SH**

geministar2008

Betterlife do not panic. Every case is individual.

I am merely stating what i was told 3 weeks ago about my circumstances. I have not heard anything back from my OR so i presume perhaps everything is ok. And as my case stands on the insolvency site i am still listed to be discharged in 12 months time.

I am unsure as to what level of spending they would deem as high in these circumstances?

At the end of the day you have to focus on the reason you are going BR rather than anything to do with the length of time you may be BR for.
At the time and run up to my BR i couldnt of given a hoot if i was BR till the end of time. It was making me that ill and depressed.

I did not mean to make you feel like poop :-)

philnicandamy

Hiya betterlife.....

IF and its an IF you did look at getting a BRO/BRU its not the end of the world & isnt half as scary as it sounds

http://www.insolvency.gov.uk/pdfs/guidanceleafletspdf/bro.pdf

http://www.insolvency.gov.uk/guidanceleaflets/guides.htm#1

You had no cash to start up business with the OR will take into consideration your keeping up payments etc ....wait & see & try not to worry too much

Phil

geministar2008

Do you have an advisor or solicitor helping you with your BR process? Maybe you could ask some further info from them?

betterlife2009

Things just go from bad to worse

philnicandamy

Betterlife have you tried speaking to business debtline as well as cccs? (they are another FREE debt helpline that might be able to give you some more information)

betterlife2009

I honestly thought i was doing nothing wrong buying the stock

PockettMoney

I was made bankrupt this morning. I have a feeling that I will be called in for face to face interview with OR rather than have telephone interview. Although I did seek CAB advice a couple of times over past few years, I probably should have thought of bankruptcy about four years ago. As well as meeting parents funeral expenses, I also had a lodger do a runner owing three months payment. From that point I began using one credit card to pay the other, and vice versa. It took my redundancy last year for me to finally get my head out of the sand and look at the situation I was in, and to fully realise how my debts were increasing each year through interest and default charges. I think as I am responsible for not taking action on this and letting it continue for 4 years to my current level of debt, I am likely to have a BRO/BRU. I do not consider myself to blame for my initial debt problems but the rapid increase over the past 4 years was down to my inability to fully realise the situation. The redundancy was oout of my hands also, and in the 3 months since the amount of interst and default charges is unbelievable. But as said above, a BRO/BRU isn't the end of the world. Still, currently at least, have my health. Perhaps I've hijacked this thread? Sorry!