Debt help for self employed (sole trader) please help!
Lylamae29
Posts: 7 Forumite
Hi please please can someone give some advice..my other half is a sole trader of a small construction buisness..over the last year hes got himself in a terrible mess, due to personal problems illness and just a decline in buisness.
Hes now no longer making a profit and the buisness is up to limit on overdraft at min..i estimate hes abput 10 to 15 grand in debt..now ive spoke to him about finisshing the buisness and look for a small job as hes 55 and i work full time anyway (ive entered a debt management for my much bigger debts with a view to go bankrupt) now in his name is a hire purchase caravan a works van..and he has a car thats worth about 1000.so my question is what are his options? Does he enter a dmp and try and carry on or look for anotyer job..or would bankruptcy or a dro be a better option..its tge implication on the buisness and hire purchase items which he would be concerned with if he went with the latter options.oh and hes also got a large tv on hp..was not happy when he got it! Hes buried head in sand now for months..ive advised him to speak to buisness debt line but to no avail..any advice id be very grateful as hes beoming very depressed x
Hes now no longer making a profit and the buisness is up to limit on overdraft at min..i estimate hes abput 10 to 15 grand in debt..now ive spoke to him about finisshing the buisness and look for a small job as hes 55 and i work full time anyway (ive entered a debt management for my much bigger debts with a view to go bankrupt) now in his name is a hire purchase caravan a works van..and he has a car thats worth about 1000.so my question is what are his options? Does he enter a dmp and try and carry on or look for anotyer job..or would bankruptcy or a dro be a better option..its tge implication on the buisness and hire purchase items which he would be concerned with if he went with the latter options.oh and hes also got a large tv on hp..was not happy when he got it! Hes buried head in sand now for months..ive advised him to speak to buisness debt line but to no avail..any advice id be very grateful as hes beoming very depressed x
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Comments
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Hi
I don't know much about this sort of stuff but if you are enquiring about bankruptcy-
I would imagine the car around 1k would be ok to keep if its needed.
If he went bankrupt and closed tbe business, the works van wouldn't be required so that would become an asset with sale amount going to the official receiver. As would any valuable tools etc. He couldnt then have a business for a certain time but you state he wouldnt do this anyway.
The caravan would be 'repossessed' i imagine. Not sure if the company themself would take this back or whether the official receiver would take control & sell it to to give money towards creditors.
TV - unsure because i know that some things classed as 'necessity' can be kept. I would say not able to keep but as i said i dont know too much.
My understanding is that a DRO is very smilar to bankruptcy but for lower amounts (up to 20k i think) and costs £90 rather than £680.
My advice would be to contact stepchange or another free debt advice charity and they will advise on all matters. They are fab. If you still have queries, come back but its best they advise which debt management is right for you when they know all facts & figures. Good luck
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Thanks for replying i think the way forward is to speak to buisness debt line..stepchange seem to refer self employed to them0
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