Have my hearing booked, but will i be allowed to go br?

steveh1_2

Hi All

Will try to cut a long story short, i setup a company with a colleague back in 2006, the business was going extremely well and within 2 years were turning over 1.5million with a 10% net profit margin.

To keep up with the rapid expansion myself & my business partner guaranteed around £400k worth of equipment leasing.

Things were going great up until February this year, when the recession hit the industry we work in hard, and from a turnover of 150k all of last year up until January it went down to 10-20k in Feb, March, April & May.

We took the decision to cease trading on 31/05. Most regretably making 20 people unemployed in the process. We simply didnt have any money left to keep trading with. We were under pressure from the bank so took it upon ourselves to go into liquidation.

I managed to get another job thankfully from a personal point of view, but at a significantly lower wage than my old position.

Anyway i took out around £40k worth of unsecured loans to setup and help support the company, and guaranteed around £240k of the equipment leasing contracts.

These guarantees are now being called upon to be paid, which i know i cant do.

I have managed to keep up with payments on all my debts, just, going further into my overdraft each month to pay them, which i am about at the limit.

I have decided to go BR in order to move on with my life, rather than waiting for one of the equipment finance companies to force me to go BR in 6 months -1 years time by the time they have got their act together.

I simply cant see the point in continuing to struggle to pay my personal debts, only for it br to be forced upon me in 6months or so.

Have been reading up on here lots, but a thought has just gone through my mind that i might not be classed as insolvent techinally until the debts are actually called up in court i guess? and therefore not allowed to go br?

Any advice greatly welcomed on that question and any other info people think i may find useful!

Thanks in advance!

steveh1_2

I should probably say i am 25, have no assets as sold my house earlier this year, so there is no money that can be recovered from forcing me br, but have been adviced by IS when dealing with my companies liquidation the finance companies will force me to go br anyway.

debtinfo

You have no problems, you are liable for the debts and cannot pay them so you are insolvent.

tigerfeet2006

Hi and welcome to the board.

Your first port of call should be to contact one of the Debt Charities; see links below. Their services are free; they have no vested interest to serve; their advisors are professionally trained and the advice they give will be objective and in your best interests only.National Debtline operate an advice on first phonecall system CCCS operate a system of telephone appointments that are designed to be flexible and don’t require you to attend an office based interview. At the CAB you will need to make an appointment with a specialist Financial Advisor; other advisors may not have the specialist knowledge you’ll need.

http://www.cccs.co.uk/

http://www.nationaldebtline.co.uk/

http://www.citizensadvice.org.uk/index.htm

If you’re advised that bankruptcy is the most suitable solution to your financial problems then we can offer the best support and anecdotal advice that you’ll find anywhere on the Web.

Read as much on here as you can, starting with the Bankruptcy Help sticky and that will answer a lot of your questions. But don't be afraid to ask about anything you don't under stand.

http://forums.moneysavingexpert.com/...html?t=1056083

Just remember, as desperate as you may feel at the moment, we have all experienced what you are going through at the moment and with the right support and advice things will improve. It’s not an easy route to take but it is a route that will put you back in control of your life rather than just reacting to events.

As debtinfo says if your debts outstrip your income you are insolvent and BR is an option.