Newbie help needed!

threestoreymadness

[FONT=Verdana, Arial, Helvetica]Hey
Been lurking for a while and think you are all marvellous for the advice you give. I have a whole range of problems and not sure what the best thing to do is - any advice gratefully received.
Right here goes!
We have endless amounts of bills that we cannot afford to pay ever - they are straight forward they would be included in the bankruptcy. We then have a loan which is guaranteed by a family memeber what would happen to that? We then have another loan with a local person who we know really well we would really want to try and find the money to keep paying that could we do that? We also have some court payments that need to be paid becuase of a crime - can these be included in the bankruptcy? What happens about your wages and the tax that you pay - I have seen that sometimes your tax code gets reduced I dont understand how this works. I also had a business that has closed I have a loan from this that is also guaranteed by a family memeber what would happen to that and can I include all of my business debts in the bankruptcy? I am going self employed next month and know that I cant be invokved in the start up of a business or such but what about if I am just a sole trader just me can I do this or not at all? Also I have a car with nothing owing on it, its worth about £2.5k but the childrens school is about 2 miles away so use it for that would this be ok? Also we have an old van worth about £500 which my hubby uses to get to work and back would this be ok? Also have lots of old council tax orders are these all wiped too and also what about money owed to the Inland Revenue from the business would this get wiped or would I have to carry on paying?

Told you it was long and windy!!! Any help?[/FONT]

dojoman

Hi and welcome to the forum, have a look at the link below most of your questions are answered in there.

https://forums.moneysavingexpert.com/discussion/1056083

Any unsecured loans that are guaranteed by a 3rd party will become the responsibility of the 3rd party if you go BR. You will not be allowed to pay back the family member, as you are not allowed to give any creditor preferential treatment.

PippaGirl_2

threestoreymadness wrote: »

[FONT=Verdana, Arial, Helvetica]1. We then have a loan which is guaranteed by a family memeber what would happen to that? [/FONT]
[FONT=Verdana, Arial, Helvetica]2.We then have another loan with a local person who we know really well we would really want to try and find the money to keep paying that could we do that? [/FONT]
[FONT=Verdana, Arial, Helvetica]3. I also had a business that has closed I have a loan from this that is also guaranteed by a family memeber what would happen to that? [/FONT]
[FONT=Verdana, Arial, Helvetica]4.[/FONT][FONT=Verdana, Arial, Helvetica] Also I have a car with nothing owing on it, its worth about £2.5k but the childrens school is about 2 miles away so use it for that would this be ok? [/FONT]
[FONT=Verdana, Arial, Helvetica]5. Also we have an old van worth about £500 which my hubby uses to get to work and back would this be ok? [/FONT]

1. Your family member becomes fully responsible for the loan
2. No, you are not allowed to favour any creditor over another they must all be treated equally so the OR if they can obtain any assets/money from your estate will distribute it as they decide.
3. The family member bcomes fully responsible for that loan.
4. You are generally only allowed to keep a car (if the OR decides your vehicle is exempt) if the value is less than £1000 a car if it is worth more would need to be sold and if they allow you a car you then buy one for under £1000. However, a school 2 miles away may be walkable through alleyways as they look at the shortest walking route so they may decide you do not need one. Distances walkable is age dependent, they expect senior school age children to walk up to 3 miles to school.
5. I would think the OR would let you keep the van if needed for work.

threestoreymadness

thanks loads for your help - the school is 2 miles but in the next village and the children are 8 and 6 my eldest walks to senior school. So the loans would fall to the person who guaranteed them and they would then have to set up a payment with the creditors? How does the OR (?) know about all your loans if they are paid cash can you keep them that way? There is only about 5 months left on the local one and thinking we could find that amount every month?