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Advice please

Got lot of debts,all are unsecured over 40k, no assets, self employed, I am in stress and can not pay minimum payments, 20% debts due to recently lost in stock market, so nothing left and stopped using now. Recently applied Iva but rejected by one creditor.

Should I apply bankruptcy as worrying every day, can not concentrate on my work, will be any difficulties due to lost mostly in stock market.

Comments

  • Flyright
    Flyright Posts: 424 Forumite
    Part of the Furniture 100 Posts Name Dropper Combo Breaker
    There may be issues with the OR depending on how you spent money on the stock market. Did you use credit for this? Did you use a gambling website/scheme for this?
  • National_Debtline
    National_Debtline Posts: 7,998 Organisation Representative
    Tenth Anniversary 1,000 Posts Combo Breaker
    Hi there and welcome to MSE,


    Debts can be stressful, but you have done the right thing by trying to get more advice on your options. You mentioned that you tried to do an IVA but one creditor rejected this. If this debt was small, it shouldn't have stopped the IVA going ahead. In order for an IVA to be accepted, 75% of the value of the debt must agree to it, if that happens then all of the creditors are locked in. However, if the debt that rejected this was a big one, then that could explain why it never got off the ground.

    Bankruptcy is a potential alternative, but it is a big option, so make sure you speak to one of the free debt charities to talk about the implications of this for you, before starting the process. For example, if you are the director of a limited company, you would not be able to continue with this whilst you are bankrupt, as that is one of the restrictions before being discharged. But if you are a sole trader, this shouldn't be a problem.

    With regard to the money recently lost on the stock market, it will depend on the details of the situation. It may just be something that causes the bankruptcy restrictions to be extended (under a bankruptcy restriction undertaking / order). You can find more information on bankruptcy here - https://www.nationaldebtline.org/EW/factsheets/Pages/bankruptcy/how-to-go-bankrupt.aspx


    Laura
    @natdebtline
    We work as money advisers for National Debtline and have specific permission from MSE to post to try to help those in debt. Read more information on National Debtline in MSE's Debt Problems: What to do and where to get help guide. If you find you're struggling with debt and need further help try our online advice tool My Money Steps
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