Getting totally stressed with questions!

JennyGiraffe

Hi everyone, have been loitering for a few days reading through a lot of the posts but still have some unanswered questions so thought I’d take the plunge and post my story!

This is a rather condensed version. Around 3 years ago I opened a shop in partnership with my mother, this involved taking out a lease on premises (first opportunity to get out of that is June 2009), and we also have an overdraft. Initially the business went ok but cashflow was very tight so the bank loan we took out in order to start the business up was added to mums mortgage which reduced the businesses monthly outgoings. Despite this the business did eventually fail and we had to accept in the summer that closing the door was the only thing left to do as by then we had no money for stock and neither of us had had any wages for months and so were getting in a mess personally. We now have joint debts (£35,000 approx) left over from the business plus our own CCs/loans. (mine £5,000 approx, mums around £30,000)
As we couldn’t get out of the lease but also couldn’t carry on paying it the landlord issued a statutory demand just over a week ago so obviously we have to find a resolution to this situation asap.
Neither of us has any real equity (mum is negative as her mortgaged amount is higher due to shop loan being added to it, I have about £2500 best case) in our houses and no way of raising the money we would need to pay this back, so bankruptcy does appear to be the best option.
We did speak to an IP who also felt that unless we wanted to opt to spend the next 5 years trying to pay it all back then bankruptcy was the best option. That said mum spoke to National Debtline this evening who suggested maybe looking at a managed repayment plan.
We seem to have been going round in circles for days trying to work out what to do for the best and I’m starting to feel like my head will explode.

The things I am not sure of are:

1. Is the OR likely to be interested in the equity currently in my house (poss £2500)? I understand that they have a right to it for 3 years which is a worry as obviously house prices will start to go back up in that time, I wonder how real the possibility is of losing the house.
2. I have opened a Co-op account to use afterwards and am in the process of changing over my tax credits/dds etc. I have a small amount of money in a savings account, is it going to look odd if I withdraw this before the bankruptcy goes through? It might only be a couple of hundred but I’d still rather not lose it?
3. Is the fact that I am trustee on a savings account in my daughters name likely to be affected? I would be absolutely devastated if she lost her money.
4. I am still self employed and so am not sure what income to put on the SOA as obviously it fluctuates – how do other self employed people fill this in? and do you have to keep reporting back all through the 12 months to tell them it keeps changing?
5. My business is currently owed around £7,500 in outstanding invoices, will I lose all this money to the OR? Or am I right in thinking that if I can justify that it will be required as working capital that I might be allowed to keep all/part of it? If I lose this money then I will also lose the business as it really is genuinely needed, if I lose the business then I lose my tax credits, then I have no income and would lose the house, quite a depressing knock on effect!
6. I am having a nightmare trying to find a replacement for a business bank account, there just doesn’t seem to be any options. Found one with no cash card, no dds, no standing orders, no bacs facilities, not a lot of use really! Has anyone else come up against this?

I realise this is a lot of questions (thanks for bearing with it!), trying to deal with the bankruptcy is actually stressing me out far more than losing the shop and being in debt, there seems to be so many variables and such a huge amount of risk.

DON79

Condensed!! :eek: it's ok!

JennyGiraffe wrote: »

The things I am not sure of are:

1. Is the OR likely to be interested in the equity currently in my house (poss £2500)? I understand that they have a right to it for 3 years which is a worry as obviously house prices will start to go back up in that time, I wonder how real the possibility is of losing the house. - It is not written in stone that you will lose your home - since BR lasts a year, it is very possible that by the time the opportunity is given to you to buy the BI, it will be in negative equity therefore it will only cost you £1 plus costs or it will be significantly less.
2. I have opened a Co-op account to use afterwards and am in the process of changing over my tax credits/dds etc. I have a small amount of money in a savings account, is it going to look odd if I withdraw this before the bankruptcy goes through? It might only be a couple of hundred but I’d still rather not lose it? - you can withdraw it but be prepared to explain to the OR what you used it for or where it is - have you got anything essential that needs repaired or replaced before BR?
3. Is the fact that I am trustee on a savings account in my daughters name likely to be affected? I would be absolutely devastated if she lost her money. - It should be fine but you could probably change this without it causing any problems if you are worried - you are only the trustee - the money is not yours.
4. I am still self employed and so am not sure what income to put on the SOA as obviously it fluctuates – how do other self employed people fill this in? and do you have to keep reporting back all through the 12 months to tell them it keeps changing? - will leave this for a self employed helper!
5. My business is currently owed around £7,500 in outstanding invoices, will I lose all this money to the OR? Or am I right in thinking that if I can justify that it will be required as working capital that I might be allowed to keep all/part of it? If I lose this money then I will also lose the business as it really is genuinely needed, if I lose the business then I lose my tax credits, then I have no income and would lose the house, quite a depressing knock on effect! - ditto above - sorry never been self employed
6. I am having a nightmare trying to find a replacement for a business bank account, there just doesn’t seem to be any options. Found one with no cash card, no dds, no standing orders, no bacs facilities, not a lot of use really! Has anyone else come up against this? - ditto above again

I realise this is a lot of questions (thanks for bearing with it!), trying to deal with the bankruptcy is actually stressing me out far more than losing the shop and being in debt, there seems to be so many variables and such a huge amount of risk.

Hi Jenny and welcome, have answered some questions for you and hope that it helps a little.

you have come to a good place and you will get lots of help and support here.

Donna

JennyGiraffe

Thanks for your reply Donna, help and support are two things which would be appreciated over everything right now (well, perhaps as much as a lottery win )

So nothing happens to the house for a year then? And then I get first refusal at any BI?

DON79

Hi yes it is likely that the OR will ask whether you want to purchase the BI just before your discharge from BR.

And it is always offered to you as to who you would want to purchase the BI - you cannot purchase it yourself, sorry if I misled you on that - but you can ask any trusted family member or friend if they would purchase it for you.


Donna

JennyGiraffe

Have bitten the bullet this morning and phoned the court for a date.

Weds 18th Feb. Argh.

philnicandamy

Well done....first step over with!

JennyGiraffe

Thanks! It's just been put back a day so that mum is seen straight after me as our debts are linked.

Am still worrying myself silly over the self employment questions (above), feels like this process is actually going to cause me to lose everything.

philnicandamy

Try not to worry..easier said I know! we've all been through what your facing one way or another....it WILL get easier everything will seem so confusing for you at the moment...all the guys & gals here will support you any way we can....meantime keep posting (I know it helped me putting things down) and if theres anything your not sure about no matter how daft Just Ask

Phil

JennyGiraffe

You're right about that Phil, it certainly is confusing!

If I knew my business was safe I would feel much better about this whole thing, but it does seem to be a complete gamble, and I would feel absolutely dreadful about letting the staff down, nevermind losing my own income, they don't deserve that.

Oddly I don't feel stressed about our debts, I am aware that they are there, but no-one chases for them or even really contacts me, obviously until the stat demand was issued, so whilst I know they exist they've never really affected me in anyway so far, don't know if that makes sense.
I realise that's different to most other people on here, who have struggled to cope with their situations and find huge relief in finally getting it all sorted, so I guess I feel like I'm going the other way round, from a situation that wasn't really that feeling that stressful, into one where I might lose my business, income, and home.
I realise I have no choice, as trying to pay it all back would put me right into the bracket of struggling with debt, but I guess I'm just not fully reconciled with it yet.

Don't mean to sound like I'm complaining, just not having a very good day I guess...