Self employed . need help re br etc

timetofixit_2

Hello all, I have been a lurker on these boards a few years ago when my wife had to declare herself br and everyone seems really friendly and very helpful.

Hope some of you can offer me guidance.

I am self employed with business premises (both home and business premises private rents), I am in a vicious circle where having built up around 40k debt mainly on credit cards I am purely working to service the minimum payments - which I now find I cant keep up with.

I am considering an IVA but sems to me unliely it would be accepted as I have no fixed or regular income.

Bankrupcy seems my only realistic option which raises questions.

A portion of my work is done through advance bookings, about half of which have paid in full, half only paid a deposit, there is about enough money left to pay that the jobs could be completed and break even.

So as not to let down the people who have paid in full, is it within the law for me to give / sell my wife the business (she was declared br 3 years ago - is currently unemployed claiming ESA which is about to expire) with its existing bookings, for me to walk away from the business having transferred the property (rented), telephone etc all into her name - sign as unemployed and declare myself br and have no further involvement with the business - she is keen to take it over which she is fully capable of and me try to find employment elsewhere.

Alternatively could start running a business from a different premises and me just "give" her the advance bookings.

It is going to take a little while to raise the £ 700.00 required for br- all my cards are up to their limits - if I just stop paying them now - how long do I have to declare br before the cc companies start really pililng on the pressure.

Sorry if all that seems a bit vague and disjointed - but I am shaking while typing having pulled my head out of the sand and realised how serious my problems are.

Hope someone can shed some light.

Mouse1812

timetofixit wrote: »

is it within the law for me to give / sell my wife the business ...with its existing bookings, for me to walk away from the business having transferred the property (rented), telephone etc all into her name - sign as unemployed and declare myself br

If the customers have paid up front they are creditors. If you transfer the funds (the business) to your wife to complete the work, that could be seen as preferential treatment (against the law). So you have to be careful - do not just give her the advance bookings.

It is possible and I did do something similar. I even told the OR that Mrs Mouse had taken over the customers (not the business). During the pre bankruptcy “hand over” we were very (very) careful not to mix the pots and kept the funds apart. I stopped taking on any new work and just finished and billed the jobs in hand. Meanwhile my wife built up the new business in her name. The OR was happy about this.

It would be better if your wife started collecting from new jobs while you finished off the old. Otherwise the OR might chase your wife to repay any funds transferred.

UpToMyNeckInIt

timetofixit wrote: »

Hello all, I have been a lurker on these boards a few years ago when my wife had to declare herself br and everyone seems really friendly and very helpful.

Hope some of you can offer me guidance.

I am self employed with business premises (both home and business premises private rents), I am in a vicious circle where having built up around 40k debt mainly on credit cards I am purely working to service the minimum payments - which I now find I cant keep up with.

I am considering an IVA but sems to me unliely it would be accepted as I have no fixed or regular income.

Bankrupcy seems my only realistic option which raises questions.

A portion of my work is done through advance bookings, about half of which have paid in full, half only paid a deposit, there is about enough money left to pay that the jobs could be completed and break even.

So as not to let down the people who have paid in full, is it within the law for me to give / sell my wife the business (she was declared br 3 years ago - is currently unemployed claiming ESA which is about to expire) with its existing bookings, for me to walk away from the business having transferred the property (rented), telephone etc all into her name - sign as unemployed and declare myself br and have no further involvement with the business - she is keen to take it over which she is fully capable of and me try to find employment elsewhere.

Alternatively could start running a business from a different premises and me just "give" her the advance bookings.

It is going to take a little while to raise the £ 700.00 required for br- all my cards are up to their limits - if I just stop paying them now - how long do I have to declare br before the cc companies start really pililng on the pressure.

Sorry if all that seems a bit vague and disjointed - but I am shaking while typing having pulled my head out of the sand and realised how serious my problems are.

Hope someone can shed some light.

I'm self-employed too and got an IVA - no problem. (Your 'income' is calculated on your most recent accounts).

Going BR was not an option as I am a director of a ltd company.

That said, if you are a 'sole trader' BR may be a better option for you (I assume you have no major 'assets' at risk?).

Like you suggest, you can really only 'save' the BR fee by not paying your creditors.

When I was applying for my IVA, I stopped paying my creditors. When they hassled me, I just told them that I was in the process of applying for an IVA, and they put my accounts on hold.

they may do similar if going BR - I believe bank accounts get frozen temporarily as well.

Have a chat with your local CAB, and some insolvency practitioners, and decide what option is best for you.

Good Luck.

timetofixit_2

Thanks you for the input.

I have a discussion planned with a Melanie Giles representative to discuss an IVA tomorrow. If income is based on most recent accounts that should see it through.

Whilst going br is probably the best fix for me - I couldnt forgive myself if I had to let the clients who have paid in full down.

We are going toarrange for my better half to formally start her own business and take on the new customers.

May sound silly - but just knowing I am actually starting to do something about it has made me feel a bit more at ease.

Thanks again

tigerfeet2006

Can I also suggest you talk to Business Debtline so you get a couple of opinions.

http://www.bdl.org.uk/

UpToMyNeckInIt

timetofixit wrote: »

Thanks you for the input.

I have a discussion planned with a Melanie Giles representative to discuss an IVA tomorrow. If income is based on most recent accounts that should see it through.

Whilst going br is probably the best fix for me - I couldnt forgive myself if I had to let the clients who have paid in full down.

We are going toarrange for my better half to formally start her own business and take on the new customers.

May sound silly - but just knowing I am actually starting to do something about it has made me feel a bit more at ease.

Thanks again

Good IP choice there. MG does IVAs for the self-employed, and I have never come across anything other than positive comments about her company service.

Always worth getting another opinion or two as well though.

Good Luck.

timetofixit_2

Having spoken at length to MG rep yesterday plus a couple of briefer conversations with others (who also praised MG when I mentioned I had spoken to them) IVA seems the way forward which will allow me to continue trading at the current business premises. MG rep seems to think all should go through OK at a fairly low p per £ to start with.

Much happier now, I know there is a long road ahead, but just accepting the fact that I had a real problem and facing it head on makes such a difference.

Thanks to everyone for their input.

tigerfeet2006

Well done on finding the courage to sort things out and making those calls. If you have any problems then I am sure the DRO & IVA will be able to help and if God forbid you need to go BR in the future you know where to come.

http://forums.moneysavingexpert.com/forumdisplay.php?f=159

All the best for the future.