Bankruptcy

nmckenna

Merry Xmas all,

My business recently ceased trading due to the collapse of a supplier the global economic downturn (Greece) and lack of support from our bank (after 10 years)

The bank have now told me that I am personally liable for £25k under a directors guarantee I signed in 2003.

I do not have this. My options are to negotiate a settlement with them or go bankrupt (CCCS have told me this is my best option). I do not have a family or a house (or other assets) so the impact is squarely on me.

I also have my personal banking with the same bank which is currently: personal loan of £12k, card balance of £4.5k and o/d of £2k. I do not intend to become a houseowner or a company director in the forseeable future.

Although the impact of bankruptcy is clearly not desirable, it seems to me that it might almost be 'worth' it, as I escape the personal debt element (and it feels like a poke in the eye to the bank that refused to even consider looking at the reasons behind our business problems).

ps - The company has not gone into administration or liquidation as it does not have the funds. It has made an application to be wound up and is going through the 3 month process.

I would very much appreciate any relevant comments or feedback.

silvercar

Talk to the bank, once they realise that you going bankrupt won't give them any money, they will have little interest in forcing bankruptcy on you. Instead they could agree a payment schedule with you.

What are you doing now? Starting up again or looking for employment.

fiveyearplan

Have you spoken with Business Debt Line? It would seem from the little you posted that BR would be a good option. I had a limited company and also couldn't afford to wind it up so went through the 3 month period and didn't even have my accounts done (told the OR I couldn't afford the accountant - which was true!). That was nearly 3 years ago and I'm glad I did it, I have no regrets.

nmckenna

Thanks for the replies...

Talking to the bank (about either the business or personal debt) is way harder than anyone would believe...

I will be talking to them (or trying to) in the New Year, and I am going to Argentina for 3 months in Feb so need to come to some kind of closure before then.

Could anyone shed any light on the actual process and timelines from making a decision to declare BR?

Also Kittycat mentioned the 'nightmare' of the OR process - could anyone shed more light on this too please.

thanks and have a good day!