I'm Not Allowed to Go Bankrupt

banksshouldworry

Here's more details on my situation...

I'm self-employed and recently changed business direction which let to a change in income. The income has only just started to come in and could go up or down in future.

Earnings so far this month are £400.

My overall monthly expenses (personal and business) are around £1150 including my mortgage at just under £500 (£84k interest only, 22 years left). The house was £88k over 3 years ago and there are two on the market at the moment: one at £80k (it's been on the market for ages and they've dropped the price twice) and the other at £90k (just recently put on the market).

The only asset I have is my car valued at £3285 with Parkers.

That's my statement of affairs (I think) - if you need more details, just let me know.

banksshouldworry

maxmycardagain

diablobear wrote: »

Well Max...... that was part of my downfall and hence BR!!!

i dont think you quite follow my drift, or maybe you do....:rolleyes:

maxmycardagain

banksshouldworry wrote: »

Here's more details on my situation...

I'm self-employed and recently changed business direction which let to a change in income. The income has only just started to come in and could go up or down in future.

Earnings so far this month are £400.

My overall monthly expenses (personal and business) are around £1150 including my mortgage at just under £500 (£84k interest only, 22 years left). The house was £88k over 3 years ago and there are two on the market at the moment: one at £80k (it's been on the market for ages and they've dropped the price twice) and the other at £90k (just recently put on the market).

The only asset I have is my car valued at £3285 with Parkers.

That's my statement of affairs (I think) - if you need more details, just let me know.

banksshouldworry

are single, in a relationship, any children,etc,etc?

is the car on HP, if so how many repayments are left, is it required for your trade?

have you spoken to the CCCS again?

maxmycardagain

banksshouldworry wrote: »

Here's more details on my situation...

I'm self-employed and recently changed business direction which let to a change in income. The income has only just started to come in and could go up or down in future.

Earnings so far this month are £400.

Profit after all costs or just sales?

My overall monthly expenses (personal and business) are around £1150 including my mortgage at just under £500 (£84k interest only, 22 years left). The house was £88k over 3 years ago and there are two on the market at the moment: one at £80k (it's been on the market for ages and they've dropped the price twice) and the other at £90k (just recently put on the market).

The only asset I have is my car valued at £3285 with Parkers.

That's my statement of affairs (I think) - if you need more details, just let me know.

banksshouldworry

depends on all the details mate...

banksshouldworry

Thanks maxmycardagain.

Single, no children.

Car is paid for outright (£11.5k 5 years ago).

£400 sales - not pure profit. Profit around £300 mark.

I spoke to my CCCS consellor once yesterday and they're sending out some letters to send to creditors and a summary of my SOA for me.

I just phoned the HMRC about tax credits on (02890) 538 192 and I'm entitled to around £48 per week tax credits and they can be backdated by 3 months.

maxmycardagain

your profit wont be £300 out of £400, check again/all costs

any backdated lump sum may be grabable by the OR if you go BR

your car has a lot of equity and could be in danger from the OR

banksshouldworry

Overheads are low therefore the profit really is £300.

d123

banksshouldworry wrote: »

Overheads are low therefore the profit really is £300.

I'm no expert, but a business making a profit of £300 a month sounds more like a hobby. Any chance you could find another job, even part time, and then try and grow your own business into something worth while?

Paying £1 each to your creditors wont get you anywhere, at least with a wage coming in you wouldn't have the likelihood of having the BR refused by the judge. Even 2 12 hour night shifts over the weekend at a local petrol station might give you enough to have enough incoming to live on.

LilacPixie

£400 sales and £300 profit?? thats 75%!!!

My hobby business is running at aboout 18% after i take into consideration tax implications. Any room for expansion.

BTW regarding the tax credits thing you estimate your income on gross profit after business deductions but before tax. I think you need to work over 30 hours a week too. I'm not sure as I only get £11 a week.

The way I see it is £300 a month income is not a livible wage for anyone. You cannot even affort your mortgage on that income let alone car running costs, insurances etc. If you do go BR lose home and car etc you will still struggle to find a rental, pay utilities and council tax on such a low income even if you get full council tax benefit.

banksshouldworry

I changed business direction about a year ago and this is a new and hopefully growing business.

Yes - the margins are good as it's information that I sell rather than physical goods.

I'm working on increasing the income - but this isn't guaranteed to go up as it's a business.

banksshouldworry