Declaring bankruptcy

Monty1978

Hello all, 

I want to preface with explaining up until last month I had never missed a payment in my life. However, due to sickness and not being able to go back to running my business, and having personal loans and business debt attached to my personal file, there is no way I'm going to be able to pay the debt. 

Though my business was successful, all I personally own is a car. I moved in with my father a couple of years back to put money into my business. My debt is in excess of 50k so I think bankruptcy is my best option.

My wife earns a good income and I am lucky enough to be able to make approx. £100 per day day trading so we we have sources of revenue but obviously we will need to rent a property in the near future. We may actually go and permanently live in a static caravan on a holiday park. This seems to be our only option but it ticks quite a few boxes while we look for an accommodating landlord. 

Any advice would be greatly appreciated. 

Thanks

flipflopflo

My first bit of advice would be sort out your accommodation before going BR. 

My second piece of advice would be to contact Business Debtline to go through your circumstances. They will help and support you through whatever you decide to do as well as the good people on here. 

https://www.businessdebtline.org/

fatbelly

Considering you only got into payment difficulties last month you may be rushing things a bit.

If you are looking for private rented accommodation, do so now while your credit record is unaffected as many letting agencies will want to run a credit check.

Also make sure your finances are separated from your wife's so that your bankruptcy will not affect her credit file. And get yourself a basic bank account that you will be OK to keep open post-bankruptcy.

You'll also need to work out where the £680 fee is coming from.

The default markers will go on to your credit file after 3-6 missed payments so there is time to sort things out before you press the button.

sourcrates

I was also thinking you were being a tad premature, the collection process can take many months/years in lots of cases, there is no rush to do anything here, if your making £100 per day, that`s going to be an awfully large IPA you`ll have to pay under bankruptcy.

Why not just take a deep breath, and see how this pans out first, you can try and save an emergency pot, once the debt collection process has run its course, make token offers to them to keep them sweet, keep on saving, then in a couple of years time, once your debts have been sold on maybe a couple of times, you should be able to settle what you owe for half of the original debt, by making full and final offers to creditors.

That would be a more sensible option given that your still earning good money, if push comes to shove, then the option of going bankrupt is always there for you, but with no assets, there`s not much creditors can actually do to recover what you owe.

Monty1978

Thanks all. 

Interest on credit cards has put me over limits and damaged credit rating already but it's not yet in a diabolical state. 

Definitely taking into consideration what you have said regarding bankruptcy being delayed. Thanks again.

I have another query.. My wife is down on our business as a director. This was a mistake on my part as it was never necessary for her to become a director I just felt that she'd given up so much for me that if we didn't work out as a couple, she should get some of the business. Consequently, she will/ may be chased in the future for outstanding directors loan. IF I have to declare bankruptcy in the future would it be better that all saving and investments go into my account so they can't be taken from her?

Thanks again and sorry for late replies. I didn't realise there were any.

fatbelly

It's possible I'm not understanding your question. Once you are discharged from bankruptcy you can do what you want.

As it stands any savings or investments you have will become the property of the trustee in bankruptcy.

If there are any joint debts with your wife then she becomes liable.

Have you taken advice about the effect of bankruptcy on your business? If you are a sole trader it's very straightforward but this now sounds a bit more complex.

https://www.businessdebtline.org/fact-sheet-library/bankruptcy-ew/