Should I go Bankrupt?

Hi All, 

I had a business that failed just after the pandemic, this was due to my business partner being a bit of a con artist (to be honest) as well as other factors. Despite this, I signed all the personal guarentees that has led to me getting CCJ's raised against me (one is for £27K).  I did also take some agreements in my personal name.  The figures are as follows:

Name Amount Status
Personal Credit Card £194.00 Paying
Bank Overdraft £2,159.00 Paying
Bank Overdraft £62.00 Paying
Personal Credit Card £1,709.80 Paying
Personal Credit Card £750.00 Paying
Personal Credit Card £2,220.11 Paying
Council Tax £2,050.00 Paying
Business Truck Finance £12,659.67 Nothing in Place
Personal Guarentee Loan £3,732.03 Being chased
Overdraft facility - CCJ £27,513.00 CCJ but nothing agreed
Trade Account - CCJ £2,338.00 CCJ but nothing agreed
Business Credit Card - CCJ £4,961.00 CCJ but nothing agreed
Personal Start Up Loan £25,000.00 Not being chasing
£85,348.61

As you can see there is personal debt in there which I'm happy to pay/manage, but I dont see how I will ever be able to pay the business related debts (which Im being made personally liabable for now) which had led me to this forum. I'm not being chased for most this debt but I'm worried that they might pop up again and in 6 years time, I would like to buy a house (the last defult on my account was as of June this year which has started the 6 year clock).  I'm not a homeowner and the only asset I have to protect is my car (according to WeBuyAnyCar its currently worth £4,300).

The thing that is stopping me from going ahead if the effect it will have on my life for the next 3 to 10 years and worried about lossing my car (which I need for work). For a while I have just putting my head in the sand to let thing blow over. I dont have much disposable income, however, I tend to do a litte extra cash in hand work at weekends to save money for Xmas, Birthdays and trips with just me and my 10 year old son (I am a single parent with full parental responsibilities).  This is not massive amounts of money (hundred hear and there) but I've always been a "saver" (all my personal davings went into the business) and I want to give my son as much as he deserves in his child hood.

I was aiming this post at anyone who has been bankrupt, in a simliar position as me (being a parent and a saver) and ask what advise you would give me and also advise how this could effect me in the next 3 to 10 years?  

Thank you to everyone in advance

Comments

  • fatbelly
    fatbelly Posts: 20,240
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    There's not enough information there to say whether bankruptcy is your best option. All we can say is that your car (worth more than £4300 btw) is an issue and you don't qualify for  a DRO.

    Whether an IVA or dmp might be better or whether there are other reasons why you should not petition for bankruptcy would be clearer if you could post a statement of affairs

    https://www.lemonfool.co.uk/financecalculators/soa.php
  • sourcrates
    sourcrates Posts: 28,548
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    Well bankruptcy, or any debt solution, will affect you for 6 years in total.

    With bankruptcy, you are normally discharged after 12 months, it depends on your disposable income if you will get an IPA or not, you don`t give any actual figures which as fatbelly suggests, makes it a bit difficult to advise one way or the other.

    With an 85k debt, it appears to be the best option, but the car won`t be allowed in bankruptcy, unless you can convince the OR it is essential to you, normally you are allowed a vehicle of no more than 2k in value.

    Also you say you are not been chased for the majority of these debts, if you can complete the SOA it will help sway the argument.
    I’m a Forum Ambassador and I support the Forum Team on the Debt free wannabe, Credit file and ratings, and Bankruptcy and living with it boards. If you need any help on these boards, do let me know. Please note that Ambassadors are not moderators. Any posts you spot in breach of the Forum Rules should be reported via the report button, or by emailing [email protected]. All views are my own and not the official line of MoneySavingExpert.For free non-judgemental debt advice, contact either Stepchange, National Debtline, or CitizensAdviceBureaux.Link to SOA Calculator- https://www.stoozing.com/soa.php The "provit letter" is here-https://forums.moneysavingexpert.com/discussion/2607247/letter-when-you-know-nothing-about-about-the-debt-aka-prove-it-letter
  • I live in the middle of the countryside and my nearest bus stop is over 2 miles away, plus I have to take my dependant to school so I'm sure I will have a convincing case to keep the vehicle. I'm aware I may have to sell my vehicle and get a cheaper one (which doesn't really make sense as I vehicle could be less reliable for that figure).

    The company got struck off and never went through liquidation as there was no assets to show and statement of affairs. The company was in over £250k wirth of debt and the list above is what I'm personally liable for (not all the debt is company related)

    What in trying to get from this is to speak to people who have gone bankrupt and find out what there experiance was like? Did they have to sell their car? How restricted were they after? And advise from people who have been through it.

  • luvchocolate
    luvchocolate Posts: 3,240
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    I have been through bankruptcy with a car of a value of £1500 when the limit was £1000 value. 
    I had a justified need as I was a mobile manager covering 35 shops. 
    I had a face to face interview as properties were involved. 
    At the interview I stressed my need for my car to be reliable (had mine from new)
    I was told the reliability was no concern to the O R ....I was lucky and gey to keep my car. 
    You need to prepare yourself as yours has a bigger value 
  • I have been through bankruptcy with a car of a value of £1500 when the limit was £1000 value. 
    I had a justified need as I was a mobile manager covering 35 shops. 
    I had a face to face interview as properties were involved. 
    At the interview I stressed my need for my car to be reliable (had mine from new)
    I was told the reliability was no concern to the O R ....I was lucky and gey to keep my car. 
    You need to prepare yourself as yours has a bigger value 
    Thanks you so much for your insite, its very much valued
  • MEM62
    MEM62 Posts: 4,675
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    The company got struck off and never went through liquidation as there was no assets to show and statement of affairs. 
    The SoA should be completed for your personal financial affairs, including all debts that you are liable for - not for the company.
  • Minkym00
    Minkym00 Posts: 768
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    Quick point - is there anyone that could pay the difference between the amount allowed for the car and the actually value? If so, the OR will accept that. 
  • Minkym00 said:
    Quick point - is there anyone that could pay the difference between the amount allowed for the car and the actually value? If so, the OR will accept that. 
    Thats great to know, I have a family memeber who might be able to do this so this was really helpful.  Thanks
  • MEM62 said:
    The company got struck off and never went through liquidation as there was no assets to show and statement of affairs. 
    The SoA should be completed for your personal financial affairs, including all debts that you are liable for - not for the company.
    Ahh ok, i got confused on this one.  The above I listed is my SoA and is everything im personally liable for.  There is much more debt that was related to the business but the above is all i'm liable for.  
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