Bankrupt!

ms_london

Hi Nick - welcome to MSE!!

Would going bankcrupt affect your business? Would you be willing to work for someone else again rather than being your own boss? Just things to consider....

It does appear that you dont have an extravagent lifestyle (as you mention), but there are also areas you could cut down on, sky tv for one, and perhaps halve your shopping budget.

Could you shop around for better deals on your mobile/car insurance/internet connection?

Is there a way that yours or your OH income could be increased? What are your goals? To become debt free? Buy a house? Save for something? Or just get your finances on the straight & narrow?

I do understand how you must be feeling about bankcrupcy, especially when, even celebrities (such as one of the two fat ladies) do it. I decided against the bankcrupcy route, mainly because I couldnt aford the fee to go bankcrupt and I am so pleased that I am now debt free, although there has been a lot of blood, sweat and tears along the way!! I have learnt so much!!

I do also agree that bankcrupcy laws should be tightened too!!

I hope some of this helps!!

Have a good weekend.

Ms_London

NickToye

Hi Ms_London

The reason I have gone on my own is because of problems I have had working for other people. I'm a creative, and working for agencies caused me more headaches. I wouldn't earn any more money working for anyone else.

I don't want to sound like a hard luck story - but if I can get some big contracts, then I can pay big chunks of my debt off and that will help me immensely, these however are never certain, and its a hard road. Trouble is at the moment I find myself worrying while i'm working, which isn't good.

My business is a sole trader type business and isn't a limited company, so i'm not sure if going bankcrupt would affect the business.

My goals are to get rid of the credit cards, reduce my overdraft to zero and lose at least one of the loans.

Emmzi

Nick,

I thinkwe won't agree on the moral stance of bankruptcy.

Instead, here's a quotefrom the equifax web site-you did say you'dlikeamortgage in 2-3 years, originally..

Why are accounts included in bankruptcy still reporting on my Equifax Credit Report™?

Inclusion of accounts, collection or public record items in bankruptcy does not automatically remove it from the credit file. All items included in the bankruptcy remain on file six years from the date of last activity.

I would guess bankruptcy would result in your only being able to obtain a loaded interest mortgage at the beginning.

What happens to your business is explained here.

http://www.insolvency.gov.uk/guidanceleaflets/guidetobankruptcy/guidetobankruptcy.htm

You can apply online from that website, if you so choose.

NickToye

I suppose I just need to improve my business levels and earn more money. I don't want to be black marked for longer than I need to, plus if I do really well, having a tarnished record is not good. I suppose i'm just a little desperate

Emmzi

Desperate is ok. The trick is not panicking.

Have you kept a spending diary (every penny!) for a week or month yet? As well as pushing income up, spending needs to come down...

How is OH coping?

Sea78

Hi Nick,

I kniow that desperate feeling well - it's hard isn't it? I think whatever you decide keep on coming back for support.

tbh it's the only thing that is keeping me going now the first rush of 'oooh I can be debt free' excitement has faded!!

Sea x

NickToye

Well we are deciding to shop in Lidl for the next few months, I understand that some people may want my debt, as its not as big anyone else's. However, I have been surrounded with debt for years, and big or small it kind of still has the same niggling feeling.

The wife is coping ok, a bit of luck may be around the corner because her step father may be going to Nigeria to work and we may be able to get a car through them, at no cost to us. So I could get rid of one debt and that would free up some more money to throw at other debts.

lynzpower

Nick

TBH Im not sure that bankruptcy would be an option for you in any case. Yes it looks easy, but its not. If your business took off and you needed different types of loans, It could hold you back.

Its fantastic that you have made these cutbacks, and I stand here and say, it certainly takes a few months to trickle down and you can actually see the effects.

With the difference you have saved, say with your bills, have you set up a standing order or another method to bring your debt free date closer. Some people do a bar chart, or other visual methods to help them visualise it.

NickToye

Well I did the snowball thing, and that was useful

NickToye

Anyone know what freeview is like? Is it worth it?