Can I take bankruptcy as an option

andy12345

Dear DFW advisers,

Putting it bluntly, I have £32,000 of unsecured debt on loans/credit cards because I ws propping up a friend's company with my time and money.

It may fail due to new eu regulatory issues, overestimation of the market, or it may take longer than expected. The company is now in no position to pay me. I do not have an income at the moment and I am so stressed by the thought of needing to earn £1400 per month after tax just to continue to survive paying loans/cards without getting any late payment markers, that I do not think I can even begin to look for work. I am unqualified/unskilled only computers are my big hobby, but not solid in any particular area, therefore, I will never earn that much money without working about 70 hours per week. So what! I hear you say. Unfortunately, I do not have great health either. I have not claimed any benefits since I left my job 2 years ago.

I am now at a critical stage so I need to know my options. Can I go bankrupt without any security (no house as I live with parents who I also owe money to) or can the OR refuse to make me bankrupt until I chase the company for the £30,000 or so that it cannot currently pay me?

Any ideas/advice would be very handy.

Please excuse my bluntness, but I just wanted to get this query down and looked at...

peachyprice

The judge won't refuse to make you bankrupt. But the OR will chase your friend/his company for the money he owes you.

If you need more bankruptcy advise you might be better posting on the 'bankruptcy & living with it' forum.

shinyhead

AFAIK you don't need any security to go bankrupt. Not sure whether peachyprice is right. Can you prove that you've incurred these debts because you've been propping up the company as you've said? If so instead of making yourself bankrupt why not make them BR??

You might be better off posting on the bankruptcy sub forum as PP suggests.

peachyprice

If the company it about to go under, it's pretty safe to say the OP won't get any money back if he makes them BR. He'll have to join the queue with all other creditors and any funds the OR raises will be distributed equally, if he's lucky he'll get back a few pence to the £, if that.