DRO advice vs bankcrupty

Mitchel.

Hi,

I'm just wanting some advice please in relation to a DRO can self assessment taxs be included and personal vat bills be included as tied to me not a ltd company?. I was considering going bankrupt however after reading about a DRO this may be a better way I have around £20k of debt.  After a DRO is done does it stay on a credit file like a bankruptcy?


*Since looking online doesn't look as simple doing a DRO if you are self employed I also have a couple of vehicles in my business which I can't do my business without which are over £2k so im swaying towards bankruptcy.


Any help would be greatly appreciated
Thanks
Mitch

luvchocolate

Someone with more experience than myself will reply but in the meantime try giving business Debtline a call 

JCS1

You would have the same vehicle issue with BR. Are you sole trader?

sourcrates

A straightforward, personal bankruptcy can be fairly easy to navigate, as can a DRO.

However, if you have a business, that has assets, you need advice on what might happen to those assets.

Business debtline, as advised above, will be able to guide you though the up`s and downs of this decision making process, so best to seek there advice first.

Mitchel.

sourcrates said:

A straightforward, personal bankruptcy can be fairly easy to navigate, as can a DRO.

However, if you have a business, that has assets, you need advice on what might happen to those assets.

Business debtline, as advised above, will be able to guide you though the up`s and downs of this decision making process, so best to seek there advice first.

having done some research already it would be bankruptcy as im self employed so no DRO available 

Thank you for your reply though ill give them a call

fatbelly

I don't disagree with the advice given - contact Business Debtline and take it from there.

A Vehicle worth more than £2000 would disqualify you from a DRO.

However, you give the impression that the self-employed cannot have a DRO. To be fair, stepchange also can give that impression.

The guidance does not disqualify the self-employed but says:

If a debtor is self-employed or gets a seasonal income, the approved intermediary should establish the average monthly income that the debtor receives and calculate their income and expenditure using this figure. You can use 3 months of income earned to determine an average.

For self-employed debtors, the income and expenditure calculation should include provision to pay income tax and national insurance contributions if these are not deducted at source.