High flyer about to land hard or few bankruptcy questions

carrot42

Hi Dear Community,


I hope you all are doing well.

Not sure if everyone is willing to know my story so I'll skip most it, but happy to answer any questions.

I'm director of an LTD which is about to go down as a result of mostly my bad actions. The ltd was running for several years now and at the beginning it was fine, but I was advised to take directors loan so I could avoid taxes and this had lead for me to be in the position where all my combined debts to tax office and credit card providers are around between 200 and 250k range.

This is going to be double bankruptcy because my company will go down together with me. I didn't fraud anyone, it is a result of things which been happening for a while and I believe now that the only way forward is to press the restart button if I hope will be allowed to press, because no way I will be returning that money over the reasonable amount of time.

I have no assets apart from few luxury jewellery which should max be up to 30k.

I have been reading this forum for a while and there is one thing which set me apart from the crowd and that is high earning. So far I been living from what I pay myself in dividends and loans from my own company, but soon I will need to look for another permanent type job where I believe I will be earning between 6 and 10k/month. 

Questions:
1) Does official receiver (OR) or anyone else could ask me to move from let say 2bed flat to single bed or ask me to move somewhere cheaper? If yes, how this can be determined? I concluded that I will be put on some kind of payment plan or something, but does this really mean that I have to move to the cheapest studio I could find in town and send all the money to the creditors or I could live in a reasonable place given the fact that I most work from home and only sometimes I need to visit clients in the offices.

2) I have opened new bank account, it is completely empty - will it go down as soon as the news hits Gazette or if there is no debt, I will be allowed to keep it ? In fact , do I even need to mention about it to OR?

3) Am I allowed to keep my clothes no matter how expensive they are or do I even need to mention them at all?


Thank you in advance!

sourcrates

First off it could be your situation will be quite complex, the OR has no power to make you move, and they won`t be interested in household or personal goods, the jewellery yes, that would constitute an asset.

If your moving to a job that pays between 6-10k a month, that`s an awful lot of money, your IPA is likely to be quite high given those figures.

Grumpy_chap

If the OP can start a PAYE job at £70k - £120k per year, can the OP avoid bankruptcy by adopting a modest life-style and reaching a payment plan with the debts?  £250k debt is less scary set against £100k salary.  This would give the OP more control than bankruptcy and may allow the OP to retain any items that have specific sentimental value.

Clothes and such like are normally ignored as personal effects but, if the OP has proper high-end designer suits at £5k or £10k starting point, they may realise a second-hand value that is worth considering.  If that is the case, then the accessories that go with that would also potentially realise some meaningful value - I'm thinking Louis Vuitton luggage for example.

It is unusual to have been on £100k earning potential, presumably more as Ltd Co. Director, yet no assets (rental 2-bed, no car?).

carrot42 said:

Hi Dear Community,


I hope you all are doing well.

Not sure if everyone is willing to know my story so I'll skip most it, but happy to answer any questions.

I'm director of an LTD which is about to go down as a result of mostly my bad actions. The ltd was running for several years now and at the beginning it was fine, but I was advised to take directors loan so I could avoid taxes and this had lead for me to be in the position where all my combined debts to tax office and credit card providers are around between 200 and 250k range.

This is going to be double bankruptcy because my company will go down together with me. I didn't fraud anyone, it is a result of things which been happening for a while and I believe now that the only way forward is to press the restart button if I hope will be allowed to press, because no way I will be returning that money over the reasonable amount of time.

I have no assets apart from few luxury jewellery which should max be up to 30k.

I have been reading this forum for a while and there is one thing which set me apart from the crowd and that is high earning. So far I been living from what I pay myself in dividends and loans from my own company, but soon I will need to look for another permanent type job where I believe I will be earning between 6 and 10k/month. 

Questions:
1) Does official receiver (OR) or anyone else could ask me to move from let say 2bed flat to single bed or ask me to move somewhere cheaper? If yes, how this can be determined? I concluded that I will be put on some kind of payment plan or something, but does this really mean that I have to move to the cheapest studio I could find in town and send all the money to the creditors or I could live in a reasonable place given the fact that I most work from home and only sometimes I need to visit clients in the offices.

2) I have opened new bank account, it is completely empty - will it go down as soon as the news hits Gazette or if there is no debt, I will be allowed to keep it ? In fact , do I even need to mention about it to OR?

3) Am I allowed to keep my clothes no matter how expensive they are or do I even need to mention them at all?


Thank you in advance!

carrot42

Thank you for the answers. A lot.

What about question 2?






No, because 100k is 5.5k/month to the bank account, in London you deduct your rent, bills and so on , and you left with very little. So if let say I'm able to pay 2k a month from 250k debt, that is 125 payments or more than 10 years.
Grumpy_chap said:

If the OP can start a PAYE job at £70k - £120k per year, can the OP avoid bankruptcy by adopting a modest life-style and reaching a payment plan with the debts?  £250k debt is less scary set against £100k salary.  This would give the OP more control than bankruptcy and may allow the OP to retain any items that have specific sentimental value.

Clothes and such like are normally ignored as personal effects but, if the OP has proper high-end designer suits at £5k or £10k starting point, they may realise a second-hand value that is worth considering.  If that is the case, then the accessories that go with that would also potentially realise some meaningful value - I'm thinking Louis Vuitton luggage for example.

It is unusual to have been on £100k earning potential, presumably more as Ltd Co. Director, yet no assets (rental 2-bed, no car?).

carrot42 said:

Hi Dear Community,


I hope you all are doing well.

Not sure if everyone is willing to know my story so I'll skip most it, but happy to answer any questions.

I'm director of an LTD which is about to go down as a result of mostly my bad actions. The ltd was running for several years now and at the beginning it was fine, but I was advised to take directors loan so I could avoid taxes and this had lead for me to be in the position where all my combined debts to tax office and credit card providers are around between 200 and 250k range.

This is going to be double bankruptcy because my company will go down together with me. I didn't fraud anyone, it is a result of things which been happening for a while and I believe now that the only way forward is to press the restart button if I hope will be allowed to press, because no way I will be returning that money over the reasonable amount of time.

I have no assets apart from few luxury jewellery which should max be up to 30k.

I have been reading this forum for a while and there is one thing which set me apart from the crowd and that is high earning. So far I been living from what I pay myself in dividends and loans from my own company, but soon I will need to look for another permanent type job where I believe I will be earning between 6 and 10k/month. 

Questions:
1) Does official receiver (OR) or anyone else could ask me to move from let say 2bed flat to single bed or ask me to move somewhere cheaper? If yes, how this can be determined? I concluded that I will be put on some kind of payment plan or something, but does this really mean that I have to move to the cheapest studio I could find in town and send all the money to the creditors or I could live in a reasonable place given the fact that I most work from home and only sometimes I need to visit clients in the offices.

2) I have opened new bank account, it is completely empty - will it go down as soon as the news hits Gazette or if there is no debt, I will be allowed to keep it ? In fact , do I even need to mention about it to OR?

3) Am I allowed to keep my clothes no matter how expensive they are or do I even need to mention them at all?


Thank you in advance!

theoretica

The bank account will depend on the bank, I believe.  If it has potential for an overdraft it may need to be changed to one without.

What are the repercussions of delaying going bankrupt?  Maybe even selling the jewellery now if needed.  It would let you then job hunt as anticipated and make the final decision in the light of the salary you secure. And knowing the job location as if you might move flat for a new job it will be much easier before going bankrupt.