Business debt?

BullShark

I owe a supplier (I'm a sole trader) roughly 9k on an old business debt having paid roughly 2k in multiple payments of £100 in the last 12 months.

I was given until the end of August 16 from last August to clear this in its entirety or the threat of proposed bankruptcy is very real.

It's unlikely I will get 9k together in the next month, if an application is made do I have a right to challenge or am I stuck?

debt_doctor

Hi,
You say this is an old debt - how old? how long has passed since you didn't pay as you should?
DD

BullShark

Since 2013. Not sure if correct but have been told it costs at least £3.5k to make someone bankrupt if debt is over £5k.

CKhalvashi

BullShark wrote: »

Since 2013. Not sure if correct but have been told it costs at least £3.5k to make someone bankrupt if debt is over £5k.

From gov.uk

Fees

The court fees to make someone bankrupt are:

• £990 petition deposit (for managing the bankruptcy)
• £280 for court costs

Pay the fees using cash, postal order or a cheque made payable to ‘HM Courts and Tribunals Service’.

Probably not as much as £3.5k, but probably somewhere in the region of half that.

National_Debtline

Hi

I suggest contacting Business Debtline for advice on your options.

www.businessdebtline.org

James
@natdebtline

TheGardener

Once a creditor makes you BR - then they open the door for every other creditor to get a slice too- so reducing the funds available for their own debt to be paid. To be honest, given the size of the debt, although the BR court fees are high - they don't include the OR's fees and that will push the overall BR costs up significantly - and the OR is paid first from whatever they recover from you... creditors get the left overs if there are any.

Do you have any significant assets that would make the BR an attractive option for the creditor?

It sounds like your creditor is either using the treat of BR as an 'incentive' for you to pay or they don't realise that your BR may actually reduce the chances of them getting anything. Once you are BR it would be illegal to make any further payments to the creditor.

Is there no way you can reach an agreement with each other as to how much and when?