Need Advice Please

kittykat100

Hi Guys,

I will bullet point this to make it easier, but would be grateful for any advice:

I owe £35K + £6K on car finance. I am currently on a DMP for the £35K and paying the finance off monthly. When I went on a DMP I was working for an employer. I came into some money from my divorce and set up my own business which is earning me more money than when I was an employee (just).
It will take me another 30 years to become debt free at which time I will be retired. I am considering bankruptcy and want to know if I can carry on working for myself when made bankrupt. I am basically a taxi driver and I own outright the vehicle that I use. The other car which is financed is currently off the road and SORN has been declared. I don't know what to do with it as I still have 4 years left to pay it off. I just want to start again, I don't have any credit cards and will never have any again as long as I live! I have been in the crap for years now.... I would like to be able to buy a house in the future and just live without the constant worry.

Kittyx

Conor_3

Yes you can carry on being self employed whilst bankrupt. The hardest thing that happens is you lose the ability to have a business bank account for a few years but as you deal mostly in cash, it won't be so much of an issue. I take it the taxi is registered in the business name?

Regarding the house, you can get a mortgage a couple of years post discharge with few problems.

backontheup

Conor wrote: »

The hardest thing that happens is you lose the ability to have a business bank account for a few years

Sorry Conor. This doesnt sound right - I am sure that you can get a Business Account - but like other bank accounts, they wont let you go overdrawn or have a business credit card.

You cannot be the director of a limited company while you are undischarged, but that is about it.

fiveyearplan

It is very difficult, if not impossible to open a business account when bankrupt - discharged or not according to people posting on here.

debt_doctor

Yes I agree that a business account would be very difficult to obtain, however if you are a sole trader there is nothing wrong with using an ordinary basic account to put your business monies in to.

Re the off roadvehicle if you dont want it then stop paying and let the finance co take it back and then put the shortfall from the sale in to the bankruptcy.

Best wishes

DD

kittykat100

Thank you for all your replies and advice. I do just use my current account for the business, my major worry was if the OR took my car away from me as that is my main source of income.

kittyx

fiveyearplan

I recently looked into opening a Halifax account - whatever the basic one is without the credit check etc. as I was thinking of going BR myself and the account said you could not use it for business purposes. With your business however you wouldn't be paying in cheques or anything so they may not know - it could be your wages.

BTW - you have to apply by post for the account I am opening and 3 weeks later it still isn't open.

fiveyearplan

I recently looked into opening a Halifax account - whatever the basic one is without the credit check etc. as I was thinking of going BR myself and the account said you could not use it for business purposes. With your business however you wouldn't be paying in cheques or anything so they may not know - it could be your wages.

BTW - you have to apply by post for the account I am opening and 3 weeks later it still isn't open.

Sorry - don't know how that got posted twice.

tigerfeet2006

The Halifax account is not suitable for a BR, they will close it down when you go BR. Go to the front page and find the sticky on Bank accounts for BR's.