Some Advice on Going Bankrupt in Scotland

Bollotti

I am already dealing with CAB, however they just told me to wait and let things take there course. I however want to be pro-active.

Who/what is AiB?

Thanks

adamantine

Bollotti wrote: »

Can I do this myself or wait for sequestration by HMRC?

to qualify for LILA you need to be totally on benefits or be earning no more than NMW. also you say you have a house so, even though there is little or no equity in it, you still have the potential for an asset which rules out the LILA route totally.

as you are debts are business debts i think that may complicate things a bit more. your best bet is to talk to one of the free debt charities or the CAB and go over your situation in detail with them.

adamantine

Bollotti wrote: »

I am already dealing with CAB, however they just told me to wait and let things take there course. I however want to be pro-active.

Who/what is AiB?

Thanks

cross posted.

the AiB is the Accountant in Bankcruptcy, basiaclly the Scottish OR.

i would give one of the other serivces a ring and ask their advice. maybe the best bet is to wait to be sequestrated but i know i would prefer a 2nd opinion before allowing it to get to that stage.

Raphael

AiB stands for Accountant in Bankruptcy, they deal with all Sequestrations (ie. bankruptcies) in Scotland.

When you say less than £25,000 joint income, I think what matters for LILA is your own personal income (with a £237 limit per week ie. minimum wage for 40 hours), but if you own your house I don't think you qualify for LILA anyway.

There is now the option to apply for a Certificate of Sequestration instead but you need to think carefully whether bankruptcy is the right choice for you.

From your post I gather the business is registered either as a sole trader or partnership with your partner, so that's what I'll try and keep in mind, but if it's a limited company things would be diferent.

If you had an agreement with HMRC and kept to it, is there any way you could challenge the subsequent demands so that you could carry on trading and pay if off gradually? have they given a reason for the higher demand?

You don't give details but you say your business is in financial services, which means you might not be allowed to continue trading once you're made bankrupt, even if your business is entirely viable at that point, so what's gonna happen then?

It will probably mean more people out of a job, and more people being made homeless, just because HMRC changed their minds?

coolcait

I agree that it would be worth your while to get more advice about this, from another organisation.

It's not really clear whether or not bankruptcy really is your best option. It might be. But, to be honest, your post suggests that your adviser has just given up, and told you to wait for HMRC to sequestrate you.

If you are able to pay back your debts over a few years, then the Debt Arrangement Scheme might be an option for you. If you get onto DAS then, by law, your creditors can't take action against you. They certainly can't sequestrate you.

Please get second opinion about all of this. Maybe bankruptcy is your only option - but please be sure about that, before you just sit back and let HMRC sequestrate you.

Good luck!

Bollotti

another sleepless night, but will look into DAS or Trust Deed tomorrow.

The main problem with either of these options is that my income can be erratic. I can have a very good month, followed by an average month, so it is difficult to say with any certainty what we could afford on a month by month basis.

My wife is worried that bailiffs are going to come and take away our possessions. To be honest I don't know enough about the law to reassure her.

Thanks for the responses so far.

adamantine

bailiffs do not exist in scotland so do not worry about that!

Bollotti

adamantine wrote: »

bailiffs do not exist in scotland so do not worry about that!

wells that's a relief, thank you.

Polly_Wolly_Doodle

Sorry, should have said Accountant in Bankruptcy earlier in my post, good website to look at though, www.aib.gov.uk

If you are in financial services do you have a practicing licence? If so i wouldn't have thought you could keep it whilst BR, i know i've been grilled to death to keep my membership and i'm not practicing, so be careful.
Can't one of the organisations bargain with HMRC on your behalf? Have you defaulted with them at some point? I find it odd (but they can be) that they are pursuing you without grounds. I know i shouldn't say it here but you could also post on the motley fool's dealing with debt website, there is a Scottish CAB / DAS accredited advisor on there.
Again good luck.

Bollotti

Have not defaulted with HMRC, had an agreement with them which has been kept without fail for 12 months. It is on the review that they have decided that thay want their full pound of flesh. It is not as if I am trying to get around not paying, just need terms which I can pay, not a ten fold increase.

With regard to licenceing, yes a BR would/could effect that, however I do have a possible contingency where my business would be run via a third party. I also know of several other people who have kept working in financial services with BR. They are just scrutinised more thoroughly.