Dont know were to begin

VictorVictoria_2

I hardly even know where to begin.

We bought a cafe a few years ago then last autumn I had a nervous breakdown, lost all my flow for the cafe and it has run into the ground. We took a secured loan to buy it, owe the HMRC, have had a charging order put on our house already. The cafe itself leaves us oweing 52k and personally we are in debt for 18k, 4k of which is a personal loan from a friend to help with the cafe through a very lean time. It has never made any money, should have got rid of it a long time ago. It was on the market and was due to complete 3 weeks ago but the buyer pulled out, cow! Was only selling for 15k anyway so wouldn't have made a dent in what we owe.

My house is worth 115k with mortgages and secured loans of 158k. My husband takes home £1600 per month which covers our home living costs and leaves a grand total of £62 a month free! We have 2 children 8 & 2 and childcare costs so much that we lose £50 a month by me working because of differing amounts in tax credits etc(how is that even possible!)

We are thinking of voluntary bankruptcy and basically giving the keys back to Northern Rock. HMRC came today and did a distraint and we have 14 days to pay £1500 or all the cafe equipment is going to get taken away to pay for it. Not exactly too much of a problem as we are closing it anyway next weekend as it makes no money in winter and are planning on handing back the keys to the landlord.

We are rapidly growing out of our house, have no garden and have the opportunity to rent a house nearby which is bigger and cheaper and are thinking of also handing back the keys to Northern Rock.

I have so many questions my head is buzzing, can anyone help?

My husband very nearly ended up going to jail for non payment of council tax, does this get included?
Do HMRC Debts get included?
Do you get chased for shortfall of secured loans from house sale or is it included?
Our children have savings accounts in their own names, are they safe?
We have a car worth approx 3k, what will happen to that?
How long does it take to become bankrupt?
Will they take into account my personal debt and allow me to repay that each month as we have agreed?

We are going to see an insolvency practiotioner on Monday and hopefully he will have some more answers for us but the weekend can be awfully long when you are thinking about stuff like this and I would really appreciate any jelp that you could throw my way.

Thanks, Victoria:o

ani_26

Hi Victoria

Theres an awful lot of questions you want answers to ,there, but i'm sure someone else will be along who is better able to answer them, than me.

I'm really concerned you are going to see an Insolvency Practioner on monday. Is this one of the agencies you pay for advice? If so , i would cancel your appointment. Theres are plenty of free, impartial heplines, who will see that YOUR best interests are met. Try going and queing at your local CAB for starters. They are fabulous.

Don't hand the keys back for anything, if you are going bankrupt, before you have taken sound advice. You can go bankrupt as quickly as you want to go br, and it depends on your situation and the advice given, as to whether you both go bankrupt, i would imagine.As i understand it, all your debts are wiped clean, as i found that hard to believe myself. I definitely would'nt pay any money in 14 days time. Forget about it. Don't be bullied.

I'm sorry if this is confusing, but i am really concerned about your appointment on monday. Just get yourself to the cab asap, armed with all your info and queries.

Nohope xx

VictorVictoria_2

Thanks, we have an appointment with the cab but it to 2 weeks away, are they open on a weekend? May try and call them instead.

The guy was recommended to me by a friend but yes I think he does charge a fee, your right, why see the man who will charge when there are people that will do it for free?

When you go to petition for BR does it just happen straight away? You walk out fo court and thats it? It just seems too simple!

x

So_Sad_Angel

Hi Victoria,

Well done & welcome. I know how difficult that post will have been to write....all of us regulars on here have been through that moment when they get it down on the page & hit the submit button. Its like you have got to that definative moment when enough is enough....sending you a big (((hug)))

Right....as Nohope says please get advice from CAB, CCCS, Nat Debtline (or Business Nat Debtline) & do this before you pay anyone. It maybe from the business viewpoint that you need help winding it all up but make that decision after you have taken free, impartial advice.

HMRC, shortfall on property & all personal debt is included unless any is joint & then it falls to any joint parties that are not bankrupt. Not sure about council tax....I`m sure someone will answer that soon.

You can petition your own bankruptcy & depends on waiting time at your local court....this stops being chased by creditors immediately & puts your financial situation in the hands of the OR so no more harrassment .

Car , if it is needed for work is usually allowed up to 2k but this is negotiable.

All personal debt will go into the BR.

Hope that helps.....my advice is get reading, get informed & focus on the tiny light at the end of the tunnel. There is a way of this nightmare & no debt situation cannot be resolved....see what the charities say first.

Angiexx

So_Sad_Angel

VictorVictoria wrote: »

Thanks, we have an appointment with the cab but it to 2 weeks away, are they open on a weekend? May try and call them instead.

When you go to petition for BR does it just happen straight away? You walk out fo court and thats it? It just seems too simple!

x

See this site for reference....its got a really good section on BR.

http://www.ned-cab.org.uk/debtselfhelp/index.asp

Most courts grant the order immediately (most will ask if you have taken advice too & CAB,CCCS,Nat Debline are the recognised charities).

You walk out with your stamped BR certificate. It seems easy but you know when its the last resort.....& you have spent the years already struggling before you had to take that final step.

Business Debtline is just a phone call I believe....I`ll get the number for you....back in a mo,


Edit - back now....just pinched this from tigerfeet2006 signature...she knows everything :-)

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.

CCCS 0800 138 1111 National Debtline 0808 808 4000 Business Debt Line 0800 197 6026 CAB – Contact your local office and ask to speak to a Specialist Financial Advisor. Insolvency Service- 0845 602 9848

ani_26

Hi Victoria,

Definitely do not go to the guy who charges a fee. Cancel the appointment. I'm glad you have an appointment for the CAB, but it is possisble to, take advice from them sooner. Check in your area, and there should be a few hours when they are open, some time during the week, where you can go along and queue, so make sure you list exactly what you need to ask them at that point, because they are snowed under.You may have to wait several hours, so be prepared, take a book, but its well worth the wait. Once you have a case number, they are pretty good at ' slotting ' you in, if its urgent. I'm faiirly sure they're not open at weekends, but check the internet, yellow pages or whatever.

When you petition, go to court, i think in most instances, it does just happen ' like that '. In my case, it was only about 10 mins. But it depends what ' aftermath ' you're caught up in. My case is far from over.

But keep your chin up. The sooner you get to the CAB, the better. They will help take some of the pressure off you, contact your dreditors for you etc.......

Nohope xx



Hahaha Just wet myself laughing................ i was going to edit dreditors to creditors, but i think i'll leave it as it is. hehehe ( sorry Victoria, but i'm going through a hard time)

VictorVictoria_2

Thanks very much for that, will give them a call asap,
Victoria