when are you free from debt after you file for bankruptcy

confusedlittlebunny · 8 January 2011 at 10:47PM

Hi,

I am contemplating declaring bankrupt on my debt as i owe credit cards and a shortfall in my mortgage, my questions are

1.how many years after will i be able to put all this behind me? some threads say one year and others six years.......

2.how many years after can i start a fresh and apply for credit cards etc or get another mortgage?

3.also, bit of a long shot question but by me declaring bankruptcy, will this prevent me from becoming a company director? as i plan to get myself back on my feet and re-build again........

many thanks

debtinfo · 8 January 2011 at 11:24PM

1. It depends what you mean by putting it all behind you, you are freed from harrasment straight away, the bankruptcy ends after 1 year, it stays on your credit file for 6 years, you will be an ex bankrupt for life.

2. technicall straight away as long as you declare that you have been bankrupt, different lenders have different criteria and these change over time considering what the state of the economy is or the public mood

3. You will not be allowed to be a company director or have any involvement in the promotion, management or formation of any company whilst you are bankrupt

confusedlittlebunny · 9 January 2011 at 6:26PM

thank you for your response.

to answer no3, how could i become a comppany director without becoming bankrupt then in the meantime not having funds (until i build my proposed company and have an income) megotiate with my mortgage shortfall and credit cards a payment plan over 10 years or so or even request some of my debts are wiped?

Saying this, can some creditors force me into bankruptcy? the bottom line is i want to get back on my feet and start my new business (my ltd company i have has ceased trading and is going into liquidation) without bankrupcy etc effecting me.....

fiveyearplan · 9 January 2011 at 6:46PM

The short answer is you cannot be a director of a company until you are discharged from bankruptcy. One year is really a short period and flies by, is there any way you can support yourself another way for the year and start up your company once discharged?

debtinfo · 9 January 2011 at 6:55PM

plus do you have to be limited, you are allowed to run a business in bankruptcy, just that you have to be personally responsible for it

Flyright · 9 January 2011 at 7:14PM

When you say that your current company is going into liquidation, what type of liquidation do you mean? Does your company owe any money to creditors at all?

confusedlittlebunny · 9 January 2011 at 7:29PM

maybe i should consider the bankrupt route then and wait the year.....basically my existing ltd company has ceased trading the last 3 months due to ill health and yes the company owes approx £40k plus corporation tax £700. as i have not funds to pay a liquidator i have just left it and then i am going to fill out a companies house form to be struck off (3 months expired 2 days ago)...i have told hm revenues i do not have money to pay the tax and that i cannot pay an accountant to submit final accounts (as i owe my last accountant £450 and he has ignored my emails to request he send off final accounts), i am very confused and stuck in between a rock and hard place as i want rid of this company, they say i must INFORM all creditors that i am preparing to be struck off as i have their contact details but their is approx 100 clients i owe ranging from £100-£900 and i do not have their contact addresses to notify them and i am ill with depression etc and not in a position to request all there details and send them copies.....i do know what to do............

confusedlittlebunny · 9 January 2011 at 7:32PM

sorry, just to clarify, i mean declare bankrupt personally not with the ltd company that has ceased trading, i have sent an out of office email through my company email stating i have ceased trading and do not have funds to go into liquidation so invite all creditors to pursue me (the company i mean) as the company has no assets or monies....

Flyright · 9 January 2011 at 7:44PM

HMRC might object to your existing company being struck off the register and if they (or one of the company's other creditors) take action to put the company into liquidation then the OR will be responsible for dealing with the company creditors and investigating your conduct as a director.

confusedlittlebunny · 9 January 2011 at 8:33PM

sorry i didnt understand the "take action to put the company into liquidation then the OR will be responsible for dealing with the company creditors"??? who will be responsible? in the meantime, shall i send off the form to companies house to request to be struck off?? as i cannot inform all creditors, how will they now i have done this and have a chance to object? my doctor has struck me off work the last 8 months and for approx one year more so i am not dealing with the company as such. sorry im confused and no one can help me to know the steps unless i pay them and i dont have the money and cab have not been able to advise..........