Been told to go bankrupt by bailiff - dont want to

Notquitedownandout

Briefly so as not to bore, I had my own business for four years and seemed to be bucking the trend of shops closing - very quickly trade stopped and i ceased trading in January.
I am now carbooting and ebaying and declaring this - i receive working tax credits + family allowance which totals less than my mortgage.
I have been in contact with all my credit cards and business debt and have made arrangements with them to pay a minimum monthly fee while I desperately seek employment.
Both my husband and I were employed by the business and after six months of struggling my husband contacted the Jobcentre and attempted to claim some benefits.
We have been told that as we had a NI exemption certificate and have not paid enough in we are not allowed to claim.
We have contacted Northern Rock and explained the situation to them and they are working with us to help.
Essentially, all our debtors are satisfied that if we make the agreed repayments on time that we are not trying to dodge the situation.
I had outstanding business rates from the shop and contacted the local council who advised me that they were unable to arrange a repayment scheme until it had gone to court and then I would be able to negotiate - I received no paperwork but this morning had a bailiff arrive at the door of my house (the shop is empty)
I phoned him to explain the situation and the fact we are literally living hand to mouth and he said 'go bankrupt, its your only choice and you will lose the house' - He quoted it would cost about £600 which I dont have. He has given me til Friday to in his words 'go file the forms' and then I have agreed to phone him.
If the business rates were not an issue, we may get through this but I dont really know what to do next.
I am a little frazzled today, so any 'constructive' advice would be appreciated
Regards

vax2002

forget all that for now !
did you let the Baliff in your house ?
And have they produced actual orders from court they claim to have ?
I think they may be lying !

pelirocco

Was the business a ltd company

debt_doctor

Hi,
Business rates are a priority debt, and as in most cases, bailiffs can attempt to collect goods from anywhere they feel the debtors goods may be held. The same rule applies though; keep the doors and windows locked and dont let them in - bailiffs (with the possible exeception of when collecting court fines) only have a right of 'peaceful entry with permission'.

Now of course it up to you if you decide to go BR, not the bailiff, and you should seek your own advice on your options from a debt charity such as CAB or national debtline or similar.

If you have no work then I see no reason at all that you cant claim job seekers allowance (income based), council tax benefit and, after 13 weeks, potentially some help with mortgage costs.
You do not need NI contributions to obtain Inc. based JSA. The DWP staff sadly often make such sweeping statements that are completly untrue.

edit - sorry, just saw that you are in receipt of WTC which means that you are declaring that you work at least 24 hrs per week as a couple - so cant claim JSA as well - but you COULD claim JSA when you no longer are in work.

DD

hallowitch

I had outstanding business rates from the shop and contacted the local council who advised me that they were unable to arrange a repayment scheme until it had gone to court and then I would be able to negotiate - I received no paperwork but this morning had a bailiff arrive at the door of my house (the shop is empty)
I phoned him to explain the situation and the fact we are literally
living hand to mouth and he said 'go bankrupt, its your only choice and you will lose the house' - He quoted it would cost about £600
which I don't have. He has given me til Friday to in his words 'go file
the forms' and then I have agreed to phone him.
If the business rates were not an issue, we may get through this but I don't really know what to do next.
I am a little frazzled today, so any 'constructive' advice would be appreciated
Regards


The first thing i would do is make dam sure you can record the calls when speaking to this bailiff (Can you record your calls)

what bailiff firm is it ?
Is the bailiff certificated to this firm ?
http://certificatedbailiffs.justice.gov.uk/CertificatedBailiffs/
The bailiff has well overstepped the mark by telling you to go bankrupt
Page 4
http://www.justice.gov.uk/downloads/courts/bailiffs-enforcement-officers/national-standards-enforcement-agents.pdf

The only reason i can think of for him saying this is to frighten you into finding a substantial amount of money before Friday
can you remember what else he said ?
The council can make you bankrupt but the bailiff has no say in the matter

did you let the bailiff into your home ?
did he levy on vehicles outside your home ?
did he leave you any paperwork listing outstanding balance and fees incurred for this visit ?

Notquitedownandout

Hi - The company was not Limited - sole trader.
They council have issued the paperwork in my home address which is i assume what they do when the business premises are empty.

afly

Business rates- the most evil of taxes, and we wonder why the country is in a mess.

Well done for getting all your other affairs sorted so well. What is the business rate debt amount roughly?

As a sole trader the liabilty is largely yours I believe, but you don't need to be taking financial advice from a bailiff.

Do you have friends/family you can turn to? If I were one and you came to me, showed me how well you have arranged things with existing creditors, that you are both seeking work and how ruthless this particular 'creditor' can be then I would loan you the money. (Offer them competitive interest vs their savings if it will help) Is that an option?

It would be preferable to dealing with council issued debt collectors as they can be very nasty indeed and if you are in for full liabilty they will take it from wherever then can including, potentially, your house

Mouse1812

Were you not eligible for the business rates holiday? What was the rateable value of the shop?

Edit to add

Small business rate relief

You will be eligible for a discount under the small business rate relief scheme in England if you only occupy one property and it has a rateable value below £12,000.

The Government has temporarily doubled the level of relief available. Between 1 October 2010 and 31 March 2013, eligible ratepayers will receive small business rate relief at 100 per cent on properties up to £6,000 (rather than 50 per cent), and a tapering relief from 100 per cent to 0 per cent for properties up to £12,000 in rateable value for that period.

more here

CIS

How much do you owe ?

Hi - The company was not Limited - sole trader.

Then , as you have probably already realised, you are both personally liable for the outstanding business rates and your goods can be taken to clear these arrears.

You need to speak with the council and ensure that any small business rates relief was being claimed and that you received any periods of exemption.

Notquitedownandout

We didnt allow them entry to the house.
They asked for me and when I was actually out, posted a removal notice with an amount showing and a phone number - no breakdown of costs or court number.
I know I owe some rates but have had no court proceeding notifications was just informed when I contacted the council to try and put some payment plans in place that it would be going to court and I should then put payment offer to them.

Notquitedownandout

We didnt allow him entry, he posted through a removal notice with a total figure on it but no breakdown or court reference, he didnt even sign or date it - I have had no court papers.
I am not denying I owe the Business Rates but was told I would be able to make an arrangement once it had gone to court and was told to wait for this to happen.
He said as I was on very limited income the Council would just go for bankruptcy and I would have to find a house to rent privately.
I asked what I could pay per month and he said on £4500 that I owe it would be £500 per month -
What is really annoying me is that I was extremely proactive in trying to prevent this and contacted the Council before any mention of court had taken place and every other company that I owe money to has been willing to allow me to at least attempt repayments including the mortgage.
I appreciate all the assistance