Need to go BR - Mental and Physical Health Destroyed

jmb751

Hi,

I have the following debt:
22k credit cards and overdraft
nearly 3 years commercial rent warehouse with personal guarantee £2.3k a month
nearly 4 years commercial van finance with personal guarantee £1k a month

Have been running a business for about 4 years but mental and physical health been getting worse. Took on the warehouse and van in November in an attempt to streamline things and stop hiring vehicles.
In December had a complete breakdown, after i realised what an idiot i've been. Have been suicidal ever since and now i can't lift anything heavy any more.

At the end of the day it's all my fault but mental illness impairs your decision making processes. I also have a nuerological condition that means my muscles are seizing. They're not sure if it's MS or not.

Also have big tax bills coming up as i'm late with returns and VAT.

Looks like i'll need to go BR but it will be messy. OR will not be impressed with my lack of bookeeping and will throw the book at me i'm sure. My assets aren't worth much either so creditors will not be happy.

Will have to move as my rented property is £2.4k, they wont have that i'm sure.

Do i refund upcoming customers before i pull the plug or is that preferential treatment?

I didn't do this on purpose, have lost over a £100k of my money i've put in. I think the depression will get the better of me but i'll try BR and see what happens.

Anyone been in a similar position?

Jim

RattyIrk

Sorry to hear things have got so bad.

Can't give you a definitive answer on the preferential treatment query. Can only speak from my own experiences as someone who had a business that also went under.

OR is very unlikely to throw the book at you. They will ask questions but I have found them to be fair and unjudgmental.

I lost over £100k of my own money, in fact all of what I had. Having your own business is a risk. Sometimes these things go wrong for all manner of reasons.

As soon as the bankruptcy order is granted the OR will write to your creditors. They should then not contact you further but deal with the OR. I haven't had anyone contact me directly.

Depending how your business is set up this may be dealt with separately. Mine was a limited company and administrators appointed. They have actually been a lot worse than the OR although more frustrating than nasty or anything.

Main thing to remember is that horrible though it is going bankrupt it is the start of you digging yourself out of an almighty hole. Better times will come.

jmb751

Thanks mate.

I went Ltd in October.

Prob get BRU for getting van finance and warehouse lease when i was in debt. Shame those companies didn't pick that up with credit checks as I have not been thinking straight.

The thought of weight off my shoulders post BR is uplifting but the thought of being made to move, getting rid of my furniture and belongings to be able to move into rented room somewhere is extremely painful. And i suppose i'd have to get rid of my dog as very few places accept them.

If you dont mind me asking, did they auction off your business assets? i'll have to start listing mine up but they are not worth much 2nd hand.

RattyIrk

They auctioned what they could but that produced pennies in reality. They will get any items formally valued.

I found they were all smiles to get the work but once in they weren't interested and ignored most requests, don't provide updates and only contact you if they need something from you. All the more galling as I am one of the easier people in life to deal with.

As I said before frustrating. Made me look a complete **** to some customers. Would have been so easy to have put some information in the public domain to let people know they didn't have to worry but they wouldn't do it. All the more annoying as another similar business went bust soon after and there was information on their website from day one to reassure customers and say what they needed to do and who to contact.

I have found most customers have been very understanding and some of the suppliers. Nobody doesn't want to get paid but if you are open and they can see you have done what you can to keep things going and comply with your obligations most are reasonably ok.

A small number of people have been vile but very few. Couple of suppliers, few customers, odd former employee with a grudge. Most have been fine and helped restore some faith in humanity.

I would emphasise though that was just on business side. OR on my personal bankruptcy has been fair and easy to deal with. Once you are over the initial period it is the personal side that is more practically relevant.

In terms of finding a room try Facebook, say you have a dog. Far more likely to find somewhere than going through a letting agent. There was a story a few weeks ago saying landlords could be stopped from banning pets so things could change in the future. May not help right now but for future moves.

chickpeaz

I can't answer your question about refunding customers, but I think you are supposed to stop trading as soon as possible when you realise you can't pay your debts.

I feel for you, I was in a similar situation when my business of 4 years was liquidated, I then had to file for personal bankruptcy the year after as I'd put around £33k from credit cards into my business, fully believing I'd make it back. The business folding was tough and emotional, and I still feel bad to this day that we couldn't pay back our investors, though I do now realise it wasn't my fault - running your own business you know, you put blood sweat and tears into it to make it work. In comparison the personal bankruptcy was surprisingly easy.

Try not to blame yourself, you've had enough of a hard time and you need to look after yourself now. You will most likely find the OR will be very understanding (as I found them to be) when you explain the circumstances, you haven't intended to rip anyone off. You can explain about your mental and physical health situation as well. After my initial interview the OR didn't contact me at all for the whole year I was bankrupt.

It's not an easy thing to go through, especially moving house, but once that's done you can start looking forward to a new chapter in your life without all that burden and weight over you. I also had to move out of a rented house just after my bankruptcy started due to our landlord suddenly wanting his house back. I found a new place through a letting agent and failed the credit checks, so had to find either a guarantor or 6 months rent to pay in advance. So if you do have to move, it's a good idea to find a private arrangement if you can.

Maybe give one of the debt advice charities a call - I spoke to Business Debtline and they were really good. And please talk to someone about your feelings if you need to, the Samaritans are great (call 116 123).

Chocgirl61

Hello
I'm about to petition for personal BR and that's scary enough so I can only imagine how you're feeling. I can't offer any advice but I just wanted to say, at the end of the day - it's only money.  Nothing - NOTHING is worth your life, so please please please, get some help with your depression & feelings of suicide.
My late brother killed himself because of debt - when they cleared his house, they found piles & piles of scratch cards, where he'd tried desperately to win back the money he owed. He'd asked friends & family for loans & no one could help  BUT, not once did we ever think that he would take his life.  I can't tell you the hole his loss has left in my life, I miss him terribly every day, even after almost 19 years. He left 2 small sons who have had to grow up without their dad, it's been awful. The shock was just dreadful, I still feel a twinge when I think of it but I was just so angry with him at first because, it was only money! It really wasn't worth him dying for and if I could tell him anything, it would be that.  
You can get through this, good luck & don't do anything daft - please?