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sammydodger_2
sammydodger_2 Posts: 43 Forumite
in Bankruptcy & living with it
HI,

I!!!8217;m currently filling in my bankrupcy forms..

I!!!8217;m self employed and have 38k of personal debt ..

I have spoken to the business debtline so I know bankrupcy is the best option for me now as I have no assets really (apart from a car 09 reg worth around £1800 - iv had advise on this!

My main questions are..

I bought a sofa with DFS in November for 2500 ish including the care plan etc... I!!!8217;m assuming this would go into my bankrupcy so do I need to stop paying for it so it!!!8217;s not a preferential payment and how much would I put it down for as an asset for value I have no idea??

Also... before I realised I was insolvent I was struggling a bit so paid off some buy now pay it next years on my very catologue off with my credit card as decided that finding £100 ish a month would be easier then finding bigger payments of 300-600 to pay in one month felt impossible. Would this now be seen as preferential payments also?? I!!!8217;m really stressed out about it!!

Thanks in advance

Comments

  • National_Debtline
    National_Debtline Posts: 7,998 Organisation Representative
    Tenth Anniversary 1,000 Posts Combo Breaker
    Hi Sammy


    It's important to stop paying for the sofa as if you are going bankrupt it's because your debts are not affordable. It's likely the price you paid for it was somewhat inflated and probably not the true value of the sofa. I'd suggest looking online for similar second hand sofas and take a value from there. You can always explain to the OR that you weren't quite sure exactly how much it was worth.


    I also wouldn't worry too much about the catalogue payments, particularly if you were not aware at that point that things were unmanageable. If the OR decides there was reckless behaviour they can put in a place a bankruptcy restriction order (BRO), that extends the restrictions you are going to be under during the 12 months your bankruptcy lasts.


    For a long BRO you'd have to have done something pretty serious, and it sounds like you were just doing what you thought was right at the time with no real intention to prioritise one debt over another. I hope it all goes well.


    Susie
    @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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