BR the only option left??

ferret85

Hello Guys, first post on the forum so be kind. Ive been reading the BR threads for the last hour and its already provided some great info.

Ill briefly explain my situation. Ive been self employed for 5 years and for the first 3 and a half i sub-contracted to a well known provider of tv and telecom services. This provided around 85% of my turnover. During this time i had £6k of credit card debt on 2 cards but as my income was good it wasnt an issue...... until without notice the company i sub contracted to decided to cutback and cancelled the contract. For the last 18 months i have struggled on but now find myself unable to make the minimun repayments. Ive had to sell my van, find a cheaper place to rent and cutback everything that wasnt essential. Im still self employed and im building up a reasonable business but its taking time.

Several months ago i applied for a trust deed but my main debtor did not agree with the offer i made. Since then ive had to borrow money from friends and family to pay bills but its time i sorted it once and for all. Im therefore contemplating BR but im unsure how this will effect my continued self employment and things such as credit with wholesalers ect. would i still be allowed to trade?

Im aware of the ramifications of BR and blame no one but myself for getting in this situation.

*sorry in advance if this is a rambling, incoherent mess^^

sniggings

If the debt is "just" £6k (sorry it may seem a lot to you but to some of us it's not that much) then you have other options, DMP, IVA, coming to an agreement with your lenders, you will be surprised what deal people like CAB, CCCS, debt help line, can get when they get involved, so ring one of them and talk through your options, it's part of the BR process anyway, as you have to have sort help, so you might as well do it now, they really do help, if you ring one and don't get on with them, ring one of the others, you might just get on with one over the other.

As for working, it can be done, but as you guess the credit will be an issue, as if you get any credit when BR over £500 you have to tell the creditor first, you can get any amount of credit still, but like I say if over £500 you have to tell them up front, a few other conditions too but nothing to worry about, that's the big one. This rule is only in place whilst BR, once discharged you don't have to say, unless asked that you were BR.

But first step, make an appointment with a help line, most will give you a time when someone will ring back, maybe 5-7 days later when you are free to go through all your options, so try and have a rough idea of all your debts to hand so you can give them all the info they need to help you, I used CCCS, they were very good, my only option was BR but as said you may have others, and remember you can't go to prison for debt (well council tax and not paying court fines excluded) so no need to worry, one bit of advice they gave me was to only pay for rent, food, and any court fines and council tax, the rest can wait, if any money left make a token payment, whilst they get to grips on your situation, this really helped me stop worrying and gave me some breathing room, but best ring them first and they will tell you how to proceed.

Good Luck

P.S welcome btw

coolcait

How much debt do you actually have in total? How many people/organisations do you owe money to?

What kind of business do you have - sole trader, partnership, limited company...?

How much do you have left over each month after you've paid all the essentials?

And so on.

BR might not even be the best option for you right now!

As sniggings said, speak to a money adviser about your situation and take advice from them.