Will Bankruptcy Take My Source Of Income?

wubblewuh

I am thinking about filing for bankruptcy since I owe around 100K in unsecured debt.

I am unable to work a regular job due to health problems but have been earning a small income by building websites which bring in a monthly income from advertising revenue.

My question is that if I file for bankruptcy will these websites be considered assets and sold off to help repay the debt?

I am worried that if this is the case that I will lose my income which it has taken a few years to build up from scratch.

skylight

Where is this income from? Savings/Bonds etc? Then yes, the source will go.

Do you mean income from wages/salary? Then a percentage may go if you have enough surplus from your essential expenses.

It all depends on what you mean by income and a few years to build it up.

madlozza

I went bankrupt last year. I am no expert but as far as I see it the object of the exercise is not to leave you destitute. You will have to complete forms stating income and expenditure obviously - they will leave you with enough to live - promise. Try 'phoning an Insolvency Practitioner for a chat.

wubblewuh

The income comes from advertising on websites that I built over the past few years.

I spent my time working on these websites to build up the number of visitors to them each day. Each time a visitor clicks on an advertisement I get so much paid to me by Google.

The amount of income is not huge and is usually less than 1200 pounds a month and I have to pay tax etc and take my costs out of that.

blind-as-a-bat_2

If the websites are yours, the fact they make money is only because you work to make them do so, so they are not an asset, without maintenance there worth is zero.

The OR may be interested in the profit you make, but not the sites themselves.

However, and i have not seen this happen yet, but in theory if you had a highly desirable domain name, that may sell for a few grand, they may be interested in that, just as they would the personal plates on a car for example

wubblewuh

I could sell the sites for around 10x their monthly income to get a lump sum of cash but obviously I would be sacrificing my monthly income.

People will buy these sites and so I wondered if the OR would want them sold off to repay the creditors.

Since they are my only source of income and I am not earning a huge amount from them I would think the OR would let me keep them but I was not sure.

The sites will function without me but would require some basic maintenance. They are essentially assets which I have built and this lead me to ask the question.

Lost2

I would have thought they would leave them with you
as they are your income

blind-as-a-bat_2

wubblewuh wrote: »

I could sell the sites for around 10x their monthly income to get a lump sum of cash but obviously I would be sacrificing my monthly income.

People will buy these sites and so I wondered if the OR would want them sold off to repay the creditors.

Since they are my only source of income and I am not earning a huge amount from them I would think the OR would let me keep them but I was not sure.

The sites will function without me but would require some basic maintenance. They are essentially assets which I have built and this lead me to ask the question.

The key word there is 'could'.

I understand where you are comeing from, and dont doubt your claim, but i doubt the OR has realised the potential in websites yet, and even if they have, they are a very fickle thing, more so in the area you describe, as there are litrealy thousands, and growing, link type sites.

Personaly i wish they would be banned, as they are clogging up the search engines, but please dont take that personaly, everyone needs to earn a living, they just annoy me.

wubblewuh

The sites I make are mainly high quality game sites with minimal advertising. I don't use popups and try to provide something useful to the visitor.

I've seen sites with nothing of value on them and annoying popup ads as well as wall to wall advertisements... that's not what I do. Perhaps that's why I don't earn much LOL