Bankruptcy help

TheSpectator

RAS said:

So it possible that he'll be also facing Trading Standards investigation? He could have asked the clients to buy the materials. 

Or worse, borderline theft.

What on earth has he done with £25k that doesn't belong to him?

sourcrates

The allowances in bankruptcy are not published in the public domain, but are quite generous, he needs to budget for every single little thing so that neither of them will be short to make essential payments.

Any disposable income over £20 can incur a 3 year IPA (income payment arrangement) so its better to over budget, and have to reduce it, rather than under budget and pay too much.

If the OR suspects foul play, a BRO (bankruptcy restrictions order) may be imposed on him, so he should be as honest as possible with the OR, as this can last a long time, and is at the OR`s discretion.

saajan_12

Thescubadiver said:

He has a shop which provides a service to customers, he is also a sole trader
this is what he currently owes
..
Customers                                  £24,665.00
Suppliers                                    £18,400.00
..

Some of these debts are very large - so he received 24k from customers but didn't buy materials with it, so where did the money go? Are the suppliers for materials as well or general business needs? If the former, then that's another 18k of materials that he ordered, reimbursed by the customer but not paid (if not then presumably he could cancel the order). These items are also presumably recent as otherwise customers / suppliers would be chasing and putting in CCJs, unlike lenders who are expecting to wait. 

So he received 41k recently and has spent it where? 

Thescubadiver

saajan_12 said:

Thescubadiver said:

He has a shop which provides a service to customers, he is also a sole trader
this is what he currently owes
..
Customers                                  £24,665.00
Suppliers                                    £18,400.00
..

Some of these debts are very large - so he received 24k from customers but didn't buy materials with it, so where did the money go? Are the suppliers for materials as well or general business needs? If the former, then that's another 18k of materials that he ordered, reimbursed by the customer but not paid (if not then presumably he could cancel the order). These items are also presumably recent as otherwise customers / suppliers would be chasing and putting in CCJs, unlike lenders who are expecting to wait. 

So he received 41k recently and has spent it where? 

It’s all gone on payments for the other debts
the customer ones range from Sept to beginning of dec

TheSpectator

Thescubadiver said:

saajan_12 said:

Thescubadiver said:

He has a shop which provides a service to customers, he is also a sole trader
this is what he currently owes
..
Customers                                  £24,665.00
Suppliers                                    £18,400.00
..

Some of these debts are very large - so he received 24k from customers but didn't buy materials with it, so where did the money go? Are the suppliers for materials as well or general business needs? If the former, then that's another 18k of materials that he ordered, reimbursed by the customer but not paid (if not then presumably he could cancel the order). These items are also presumably recent as otherwise customers / suppliers would be chasing and putting in CCJs, unlike lenders who are expecting to wait. 

So he received 41k recently and has spent it where? 

It’s all gone on payments for the other debts
the customer ones range from Sept to beginning of dec

So basically a rogue trader then. Essentially theft.

Thescubadiver

sourcrates said:

The allowances in bankruptcy are not published in the public domain, but are quite generous, he needs to budget for every single little thing so that neither of them will be short to make essential payments.

Any disposable income over £20 can incur a 3 year IPA (income payment arrangement) so its better to over budget, and have to reduce it, rather than under budget and pay too much.

If the OR suspects foul play, a BRO (bankruptcy restrictions order) may be imposed on him, so he should be as honest as possible with the OR, as this can last a long time, and is at the OR`s discretion.

We have done the household budget and it shows no money left over
the only thing is that with the budget none of his wife’s debts can be paid 
do we need to add in his wife’s debts ?

ManyWays

do we need to add in his wife’s debts ?
No, bankruptcy is a form of personal insolvency, you cant include anyone elses debt. But it sounds as though his wife also needs debt advice on her options, that doesnt have to be bankruptcy, a debt management plan may be enough. A couple with different debt options is complicated so I suggest he talks to Business Debtline