considering bankruptcy.. what after?

Marcus-H_2

Hey,
Where to start? Right, I started a business, that failed within a year. Mostly my fault if im honest. In that time I basically lived on my Credit Cards.. Now everything is catching up with me. Debts from the business, as well as my personal debts of credit cards, etc. Had a letter from the bank saying they are withdrawing my overdraft & what payment in full!!!

The problem is, ive been ignoring the letters, maybe hoping they'd go away :rolleyes:

Anyway, Debts probably, Top £20k, maybe £25k :eek: My income is around £1400 a month - but this job is only until the end of the year - I know I couldnt name all my Debts if Asked, Id bound to miss a few out as theres that many!

Basically, my outgoings are already more than my income. Credit Card bills top £400, Rent (ive had to move back with my dad - Used to rent on my own, this has saved me £250 a month) is £400 - but that includes everything - inc meals! Car with petrol maintainance, etc. works around £200, TV, Sat. Broadband Package £50 & Mobile phone £20. Spend about £100 a month then on personal stuff, Toiletriees, haircuts, etc. (My job means I have to be well groomed!) & I go out once every 2 weeks & spend around £50 (mainly cos I live in the sticks & taxi's to local town cost £20 )

Basically, I think my best option is bankruptcy. I dont want an IVA simply because I know Im going to be out of work in January, and cant guarantee payments after then.

Thinking of moving on in the new year, this country is just to expensive to live. Thinking of Eastern Europe TBH, as I like the cold weather :rotfl: . Not sure how bankruptcy would affect that.

Anyone care to set my mind straight?

johannamse

PAY IT BACK!

25k is not alot on 1400 a month, when your outgoings are really low. Your actual only fixed outgoings are rent and car (total 600). All the rest are just things you like spending money on and are not really needed. That leaves you 800 a month. You could be debt free in 2 years. You say you will be unemployed in jan. WHat is stopping you getting a new job? Start looking now. Get 2 if neccessary.

I too would like to go away in the new year, but cannot afford to. I am pretty sure you will not be allowed to go bankrupt, whilst you are earning so much. Of course, you could just wait till Jan, sign on and then go bankrupt.

Marcus-H_2

1400 a month is good money for me at the moment. Usually, I only take home about £800 as thats the going rate in my area - Just this project came along at the right time for me. - In my profession, 2x Jobs in unworkable. I cant work weekends/evenings to personal comittments. Im not off about going on holiday, im off about going for good. At the moment, at least 1x Credit card dont get paid a month, then with the intrest, non payment, etc. charges, its like 2x aint getting paid. Ive had arguements with one of them about statements either not getting to me, or turning up on the day the bill is due & as it has to be paid in advance, so it clears on the due date Its always late.

As for the things not needed. Actually they are. I need my own Telephone line & Internet access for my Job - The TV thats included in the package, has no subscription channels. Mobile Phone is also needed for my Job. Along with being dressed smart & upkept appearance. As I basically, either connect to the company network over Internet, or Im out & about with customers. - so they are essential outgoings. - I do get reimbursed for business travel, calls, etc. But thats Included in the £1400 - My actuall PAYE take him is £1200, the other £200 is expenses claimed back. Hope that explains things a bit better.

Hence, I'm looking at Bankruptcy now, come January things will get worse. Was hoping to sort out my financial situation by around the end of the financial year & then start a fresh life in another Country.

pug_in_a_bed

Hello Marcus,

Sorry to hear things are difficult at the moment. I am a discharged bankrupt, but slightly different circumstances as your problems seem to be of the business variety. I would think long and hard before you do this; even as someone who has experience of this I wouldn't recommend it. It was stressful, though obviously not as stressful as the debts themselves. Its going to be another good long stretch of a few years till I can safely sasy its all behind me. If I could have paid it back I would of as we all would I'm sure.

First things first, people on this board are ever so helpful, but whats even more helpful is if you post a complete list of incomings and outgoings including interest etc (as I see you have partially done). This wil give others a better idea of what to suggest. I would personally recommend a vist to the CAB asap for advice, as there may be alternatives for you. You must not go into it blind, have a look at the insolvency site for some advice.

Like you, i love the cold, i just can't bear the hot summer at the moment! (I've often thought of moving to somewhere like Alaska where i could roll in snow a lot lol)

But, on a serious note, if you're serious about moving, I'd start looking in to what/if any implications bankruptcy would have on firstly entering a new country, and also beginning again businesswise, if thats what you chose. At one point I was considering a move to teach in the states, I posted for advice on another forum and the advice I received made me realise I had not thought of the effect my bankruptcy would have on trying to attempt such a move. Just a thought, but something to look in to.

I hope this helps a little,
Good luck

Marcus-H_2

Hi, the above is pretty much all my in/out - I cant say down to the last £ exactly what goes where. My work ends in December, so come January I am unemployed as the Project would have finished. The only payment Im behind on is Capital One Creit Card. I owe them £1000 - Limit is £700 - most of the money is late payment, interest, non payment, etc. - Ive had enough with them due to me receiving statements on or after the due date... so they add on £40+ even before I see the statement & they just tell me tough luck basically, so I am refusing to pay them another penny.. ive offered a settlement of my CC limit (£700) but they refuse, so Im digging my heals in.

As for moving away, Ive been researching it for quite a while. Theres plenty of work available & not knowing the local language doesnt affect the work. The Idea to go away is because its cheaper living costs. From what Ive worked out & spoken to others, I should get a job paying around £750 a month take home (a little less to the best I could hope for around here!) - Rent would be around £400 with bills inc. - So that would leave me £350 a month to live on. Which should be easy enough... especially when a kilo of potatoes are 40p, 4 pint of milk the same, beer 20p a litre, etc.

HelenR_3

Marcus-H wrote:

Hi, the above is pretty much all my in/out - I cant say down to the last £ exactly what goes where. My work ends in December, so come January I am unemployed as the Project would have finished. The only payment Im behind on is Capital One Creit Card. I owe them £1000 - Limit is £700 - most of the money is late payment, interest, non payment, etc. - Ive had enough with them due to me receiving statements on or after the due date... so they add on £40+ even before I see the statement & they just tell me tough luck basically, so I am refusing to pay them another penny.. ive offered a settlement of my CC limit (£700) but they refuse, so Im digging my heals in.

As for moving away, Ive been researching it for quite a while. Theres plenty of work available & not knowing the local language doesnt affect the work. The Idea to go away is because its cheaper living costs. From what Ive worked out & spoken to others, I should get a job paying around £750 a month take home (a little less to the best I could hope for around here!) - Rent would be around £400 with bills inc. - So that would leave me £350 a month to live on. Which should be easy enough... especially when a kilo of potatoes are 40p, 4 pint of milk the same, beer 20p a litre, etc.

why bother sorting anything out , just go , you dont sound like you want to pay your dues anyway to be fair...

£100 p/m on toiletries and haircuts ???

you sound like youre beyond help

ManAtHome

Marcus, take pug's advice and go see the CAB - may not change anything but at least you'll have an impartial assessment. Whatever the outcome (bankruptcy or IVA) it should at least give you a breather to think things through.

Moving abroad may not be a problem, but coming back may be.! Worth thinking about if you're heading for one of the proposed EU entrants - they are likely to be hit by more inflation than the UK and wages may not keep up with prices.

By the way, the recent changes in bankruptcy laws were intended to encourage people like you who have had a go at starting a business - hope you get it sorted, good luck.

ms_london

Go and see the CAB, contact ALL of your creditors, explain your situation (which seems to be you DONT want to pay, rather than you CANT in my eyes!) - ask them to freeze the interest/charges and that you will be back to them with a repayment programme, and that you are in talks with the CAB.

The longer you "dig your heels in", the more charges they will slap on your account. & the same if you ignore them & pretend the phone calls/letters go away.

I can appreciate that come January you may not be earning as much, but thats still 4 months away - use the money while you DO have it. Then base your outgoings on your "normal" salary of £800, then anything extra you receive is a bonus & can be thrown at your debt.

It seems that you are on a good salary - If I were you I would clear your debt first and then think about moving away when you are debt free - it will be a huge weight of your mind. Then you could move away & have so much more money available to you, and with money, brings choices - you could REALLY enjoy the new country, rather than still feeling "imprisoned".

Sorry to sound harsh.

Ms_London