Looking at sequestration

Robbo24

Hi Newbie here.

My wife and I have been recommended to file for bankruptcy due to level of debt that has been snowballing for over a decade. We have always managed to struggle along with minimum repayments and consolidating, however over the last year I have had a couple of breakdowns due to stress and depression with work. I was truly unhappy and felt stuck by the chain of debt.

My wife gave me an ultimatum of leaving this work for my own sanity and health or risk losing her and the kids or worse myself.

My income dropped by 2/3’s this year and although we can pay essential bills we couldn’t pay towards our unsecured debt, hence bankruptcy being our only option. We sold our house and moved into a rental property so have no fixed assets of any value now but have some funds from the sale that we can put towards the bankruptcy.

Anyway a couple of questions.....

My wife is reg owner of our car, however I use this to commute and get kids to/from school. It is valued at over £3k on webuyanycar quote but has some poor bodywork so I recon we can keep it as their likely true valuation would be lower......is that likely?

I have been doing some retraining lately with the view to start my own business in the new year, it is a low cost start-up so would only need basic banking business. I have already an account with tide for this and have web domain etc. Would they close these? Could I start this during the year of being within bankruptcy? The income is unknown, it would be a side project to current job I have so my regular pay would be base income. 

Our FA has spoken to an IP and it seems that it would be straightforward based on what we have came through and where we are now.

sourcrates

Hi,

The rules on sequestration differ to the bankrupcy laws in the rest of the UK.

Maybe run your questions past National Debtline (Scotland) they are known for good, free, impatial advice.