I think there's only one option...

nervousmother

Have a look at others SOA thats what I did and found really helpful.

Be aware they may have an interest in your business, especially if you hold any stock or have 'full' order books that can be sold on. They also wanted to know what the office equipment was worth, Even if you are going personally BR your business gets dragged into it. My OH had to shut down his business on the day of BR only to open it the next day and re employ his staff :rolleyes:

sieve

Scarlett.1974 wrote: »

Hi,

I've increased a couple of your utilities because they're very low and if prices do go up on those then you may struggle. I've changed another few things for you, just my opinion, but I'm no expert on SOAs so see what everyone else thinks

Thanks Scarlett, that's a big help. The internet I need for my business - there is no way I could operate without a reliable, non-residential connection as it is my lifeline.

It's looking like an IVA is a no goer isn't it?

skylight

IVA? Realistically, can you afford the £500odd per month for an IVA plus what you are already spending???

Personally, I would deduct the tax from your SOA and adjust the income accordingly. It does specifically state net income and you do not want to argue with the ORs over the matter.

Entertainment and Sky are not permitted on an SOA - you have to pay for this out of your surplus.

sieve

nervousmother wrote: »

Have a look at others SOA thats what I did and found really helpful.

Be aware they may have an interest in your business, especially if you hold any stock or have 'full' order books that can be sold on. They also wanted to know what the office equipment was worth, Even if you are going personally BR your business gets dragged into it. My OH had to shut down his business on the day of BR only to open it the next day and re employ his staff :rolleyes:

Thanks NM. Fortunately the business doesn't hold stock as it is more a service business than anything. Order books - none to speak of, the only thing that comes close is a client portfolio of already signed contracts which will generate about £30k over the course of the coming year, pre-tax. But they wouldn't sell this to someone else and leave me with nothing would they?

No staff involved fortunately.

Scarlett.1974

sieve wrote: »

Thanks Scarlett, that's a big help. The internet I need for my business - there is no way I could operate without a reliable, non-residential connection as it is my lifeline.

It's looking like an IVA is a no goer isn't it?

If the internet is essential for your business then that won't be a problem

The problem with IVAs is that the budget they set is incredibly tight...... they don't allow for increases in anything or any sort of "luxuries" at ALL (haircuts for example) and that is unfortunately why so many of them fail..... people just find the restrictions impossible to live by.

sieve

Scarlett.1974 wrote: »

If the internet is essential for your business then that won't be a problem

The problem with IVAs is that the budget they set is incredibly tight...... they don't allow for increases in anything or any sort of "luxuries" at ALL (haircuts for example) and that is unfortunately why so many of them fail..... people just find the restrictions impossible to live by.

It's weird that. If writing everything off, it sounds like you have more freedom than if you attempt to pay things back. Where's the logic in that? Surely the creditors would rather get something back rather than nothing?

nervousmother

sieve wrote: »

Thanks NM. Fortunately the business doesn't hold stock as it is more a service business than anything. Order books - none to speak of, the only thing that comes close is a client portfolio of already signed contracts which will generate about £30k over the course of the coming year, pre-tax. But they wouldn't sell this to someone else and leave me with nothing would they?

No staff involved fortunately.

I would get proper advice, What i have been led to believe is those contracts were aquired before BR so if worth anything and if they can sell them they will. I am no expert, just what Ihave heard during my OH BR. Any contracts got after BR then they cant touch them.
My Oh is in service industry too, he has a client list but had to make the argument that the clients come to him as they like him, and if he wasnt involved they would find someone else who they do like. could you not use that excuse? mind you we still dont know if they will try to argue.. there is not much advice about for when business' are involved though.

sieve

nervousmother wrote: »

I would get proper advice, What i have been led to believe is those contracts were aquired before BR so if worth anything and if they can sell them they will. I am no expert, just what Ihave heard during my OH BR. Any contracts got after BR then they cant touch them.
My Oh is in service industry too, he has a client list but had to make the argument that the clients come to him as they like him, and if he wasnt involved they would find someone else who they do like. could you not use that excuse? mind you we still dont know if they will try to argue.. there is not much advice about for when business' are involved though.

Yes I know for a fact that that's why my clients use me, as they have said it on several occasions (that's not being big headed). So I could probably use that excuse if it came to it - thanks

Tried ringing Business Debt Line yesterday all day and didn't manage to get through once. I'll give them another call in the morning.

nervousmother

make sure you tell your or that it was you who was given the contracts and if they were sold to anyone else thy 'orders' wouldnt follow through, so they would be falsly selling on the contracts.

fc123

sieve wrote: »

It's weird that. If writing everything off, it sounds like you have more freedom than if you attempt to pay things back. Where's the logic in that? Surely the creditors would rather get something back rather than nothing?

I haven't got to the end of the thread yet...but wanted to respond to the above comment.

If the credit is easier to get, then getting out of a pickle HAD to be made easier too. Many of the new laws (that I am uncovering daily BTW) were laid down precisely for people like yourself and people like me.

My formative years were part of The Thatcher Generation and I assumed bankruptcy meant you'd ''failed'', you would lose your home (albeit modest) and not be allowed to work. Obviously, I have discovered that that is NOT the case. A thread last night mentioned going BR during the 80's and they even took her ironing board.


I am not in a position to post my situation (yet...but I will in due course) as I am in a totally different situation to many posters on this board. We have little debt and haven't added to it for 4 years (cos paying it down) BUT have a fully liable shop lease with nearly 10 yrs left....and the rent is going to increase by 40%.....and the turnover is reducing.


From my own 'rooting around' and from professional advice I have received, an IVA would not be the best route for you...but only in my opinion from what you have posted.

You are welcome to PM me anytime (I log on in the evening) if you want to know my circumstances.

If we choose to go BR (in order to finalise the lease) we will be doing an assisted bankruptcy as we are a business....and it's more complicated than having a debt and a PAYE salary to declare to the OR.

As I said before, feel free to PM me as I can't post some stuff freely at the moment. Not cos it's dodgy or anything but I ID'd myself on another board (locationwise), and you never know who reads the boards.