Bankrupcy questions and sole trader

sammydodger_2

Hi

So all this feels a little daunting to me and I can!!!8217;t beleive I!!!8217;m in this situation !!!128546;!!!128557;

I!!!8217;m a sole trader in direct sales and have been for 8 years..

It!!!8217;s profitable and I!!!8217;ve always been ok but my personal circumstances changed when my partner was off sick from work. We have 2 children so I just paid what I could and things went ok credit cards to get by..

He!!!8217;s now back in work but now we!!!8217;re trying to backpay more then we earn including paying bills etc

I currently owe around 30k on loans and credit cards etc and can!!!8217;t see i way out.

I have no assets only my car.. it!!!8217;s worth around 1400 and I have about 1800 to pay on it which is up in August.. it!!!8217;s a Barclays liam finance now HP and I use it for business.

My first question is...

Will I have to stop being self employed? I have no business assets I could sell and I don!!!8217;t order on account everything is paid upfront- without this I couldn!!!8217;t pay my bills Atall and I also use my car for business and the children

2nd question

At the moment I havnt missed a payment - partly because I!!!8217;m paying one credit card then using the balance that!!!8217;s left after interest taken to pay another! It!!!8217;s getting ridiculous - do I stop paying these as they will see it as I!!!8217;m paying so I!!!8217;m fine?

3rd question

If I did the bankrupcy online is this ok to do when a sole trader? And am I best sorting my accounts for the year ready for April before doing it?

4th question

My mobile phone contract? Will this have to go aswell? Again never missed a payment but stressing as I need it for business and obviously everyone work wise knows that number

I hope you can all give me some help on this my head is spinning with it I just want to bury my head in the sand! I!!!8217;ve looked at Iva etc and feel like bankrupcy is better for me

Xx

mwarby

1) No you can still be self employed AFAIK, it will probably make things a bit more complex in terms of working out budget and wether an IPA is needed

2) I'd stop paying until you go bankrupt

3) Not sure, but I'd be getting the accounts ready in good time

4) Most of the time this is fine, as long as the contract isn't ridiculous. Worst case you can port you number to a pay as you go (the network aren't allowed to use debt to stop you switching, but they will probably be a PIA about it)

sammydodger_2

Thanks - I feel sick to my stomach Iv never missed a payment in my life I have spent most the weekend in tears seems so scary!

sammydodger_2

Sorry to ask more questions but also if I did all the house hold bills go out of my bank account - I!!!8217;m assuming my bank accounts will be closed... do I apply for a basic account before bankrupcy or after or will they just close that aswell?

luvchocolate

I always advice opening a basic bank account before B.R get all your D.D etc up and running.
Put this on the forms as your day to day account and the O.R will write to the bank telling them they have no interest in this account.

Its the banks that decide if they close an account, a basic account is usually safe.

sammydodger_2

THankyou next on my to do list then! I feel so embarrassed by all this

luvchocolate

No one will judge you on here, we are here to help you, most of us have been through B.R, don't beat yourself up about this ...get all your ducks in a row, its all in the planning.

sammydodger_2

Hi sorry me again...

Looking at my sofa finance agreement does anyone know what this means..

during the currency of this agreement, you must not suffer any bankruptcy petition to be presented against you, or execution to br levied against any of your assets, nor shall you enter into any arrangement or composition with your creditors without our express consent.