£125K debt...help needed URGENTLY....

[olympic1805]

Need some advice..

 

.It has now been several years since our business started going into difficulty and i is now just making me so ill and we need to sort things out once and for all..

 

We have had advice recently from LC to declare ourselves bankrupt, but we are so scared in doing this, we just dont know which way to turn.

 

We have now got debts of around £125K, half of that is to the Tax/Vat man (Long stories, but never had the money , penaltys caused by business stupidity !).

 

The business is still trading and our only source of income.

 

Our house is in negative equity, and we also have a buy to let property, that is also in negative equity.

 

If we do decide to go bankrupt,

 

A) would the business be closed, or if not would our customers be informed of our bankruptcy:

B)The buy to let property would the tenants be informed of the bankruptcy,and would we still keep this, part of this income is needed for our day to day living costs also.

 

Or would an IVA be more appropriate ??

 

I have been looking and reading now for so long and it has come to the time when if we dont do something then probably the IR will declare us bankrupt (they have already mentioned this)

 

Personally I feel I would be cheating by going bankrupt, it just doesnt sit easy with me,I wouldnt feel guilty about the IR but half the debt is personal debt !!

 

Someone please advice,

 

I go from thinking yes to the Bankruptcy, then NO, Yes to the IVA, then No.

I really, really dont know what to do, but sick of waking up in the night worrying about this...

[Bang!]

Is your business a limited company?

 

If you have a business that fails through being run badly and you go bankrupt failing to pay into five figure taxes - it seems likely the term of bankruptcy will be three years.

[olympic1805]

No the business is not limited, another bit of bad advice we got !!! The approx tax to the IR including Vat/Tax/penalties is £64K..

[rebel11]

Hi Olympic

 

Have you been mis-sold PPI on any of your products over the last 6 years plus.

 

Thread has been moved to the correct forum.

[olympic1805]

we were on one.mbna, that was repaid some time ago, but no others, as we were always self employed we always said no to the PPI.

[olympic1805]

I have just done the CCCS debt remedy on line, and they are advising a Temporary Payment Plan....totally confused now which way to go still...

[debtinfo]

Hi olympic, what sort of business is it

 

BTW bang is incorrect, the bankruptcy will not be extended beyond the one year if you give full co-operation to them, Although if wrongdoing is identified there can be some restrictions for a period of time (this is not the same as extending the bankruptcy though)

 

also, for the BTL property what is it worth, and what debts are secured to it

 

do you own your own property, if so same questions,

 

do either of you have any income apart from the business and BTL property

 

do you have any other significant assets anywhere in the world

[toddle2u]

Further to debtinfo's questions is the business making a profit or is it accruing further losses and incuring further debt? What surplus income would you have after paying normal living expenses (not including debt repayments)?

[Bang!]

Hi olympic, what sort of business is it

 

BTW bang is incorrect, the bankruptcy will not be extended beyond the one year if you give full co-operation to them, Although if wrongdoing is identified there can be some restrictions for a period of time (this is not the same as extending the bankruptcy though)

 

also, for the BTL property what is it worth, and what debts are secured to it

 

do you own your own property, if so same questions,

 

do either of you have any income apart from the business and BTL property

 

do you have any other significant assets anywhere in the world

 

I had read through this list the other day to find trends for the extended restrictions of bankruptcy...

 

http://www.insolvencydirect.bis.gov.uk/databases/ddirector/viewbrobrudetailslatest.asp

[olympic1805]

Hi olympic, what sort of business is it

 

BTW bang is incorrect, the bankruptcy will not be extended beyond the one year if you give full co-operation to them, Although if wrongdoing is identified there can be some restrictions for a period of time (this is not the same as extending the bankruptcy though)

 

also, for the BTL property what is it worth, and what debts are secured to it

 

do you own your own property, if so same questions,

 

do either of you have any income apart from the business and BTL property

 

do you have any other significant assets anywhere in the world

 

Hi no both properties are in negative equity, only income is from the business, and no assets and no surplus income..

[olympic1805]

I rang Bankruptcy.org yesterday, spoke to a guy who was really nice, went through everthing with him. He concluded that the only option is bankruptcy, and there charge for sorting all paperwork is a one of of £500, then the Bankruptcy charges. He explained also due to us having no surplus income an IVA would not suit, he said around that level of debt we would have to find £500 a month for an IVA, which we just dont have....

[olympic1805]

Also when ringing Bankruptcy.org they then transfer you to mymoney group, is this company ok to use, its is them that will handle the bankruptcy ?? anyone heard of them ??

[bake]

hi sorry to here of your plight been there

i would recomend you dont approch any of the named compines, bad exspericnce

 

if you are looking at personal Bankruptcy, then i would surgest you file the papers your self at the local court and pay with a credit card if possible only 550 in total

 

might sound bad but if you are going down that route then why use you own money.

 

but i am sure you know that if you have any property then that could be used against any debts the official reciver may force sale. that however will be longer down the road around 6 months at best.

 

are the debt in one name or two (partner) the business run by who the person that owes the debt or partner

rember if debt only one person then other person has business to run just depends how the business is set up

you could set a a new ltd company in a partners or other persons name and transfer cliants to new business

 

hope this help

 

there lots of usfull info

[toddle2u]

if you are looking at personal Bankruptcy, then i would surgest you file the papers your self at the local court and pay with a credit card if possible only 550 in total

 

You are unable to pay by credit card and the total fees are £700.

 

Rather than using a company to help you with the paperwork it is relatively easy to do it yourself. However, I am aware of companies that will assist you for less than £500. As you have been correctly told with no surplus income an IVA would be inappropriate and BR seems the best (if not only) option.

[olympic1805]

thanks for replys, think I might try and complete forms and do myself, the £500 is nearly payment for one of the bankruptcys so it is a big chunk of money. Does anyone know if the Official Receiver will talk and give advice before you file, or is there anyone who advises without charging ??

[stu007]

Hi olympic

 

This link which is the Insolvency Service may be of some help to you: www.insolvency.gov.uk

[AuntyAlice]

Oh my word!

 

First and possibly most importantly nobody needs to pay for debt advice - there are plenty of free debt advice providers out there who will not only advise on the most appropriate debt solution for you but will help you to achieve it.

 

You need to seek specialist help from a local law centre or CAB (if you want face to face advice tailored to your personal situation) or alternatively you need to contact National Debtline if you are ok with impartial telephone advice.

 

With debts at the level of yours, it would seem that bankruptcy is probably the most likely solution but it does warrant specialist advice and I strongly suggest that you seek some.

 

I would absolutely discourage you from paying anyone anything to fill in a bankruptcy petition for you - it can all be downloaded from the Insolvency Service website (along with comprehensive guidance notes) for free.

 

Please get that advice!

[Wintry]

Hi olympic

 

I more or less agree with Aunty A with regard to specialist advice and paying anybody for help filling in bankruptcy forms etc

 

Might be a good idea to come back to us if you do eventually decide on bankruptcy as I am quite sure there are people on here that can guide and help you with the forms etc

 

In the meantime, below, completed bankruptcy form guide examples that may give you the general idea.

 

http://mymoney.nedcab.org.uk/moneyadvice/bankruptcy627.asp

 

http://mymoney.nedcab.org.uk/moneyadvice/bankruptcy628.asp

 

http://mymoney.nedcab.org.uk/moneyadvice/bankruptcyex160.asp

 

Also general bankruptcy information and guides below -

 

http://mymoney.nedcab.org.uk/moneyadvice/bankruptcy.asp

 

http://www.bis.gov.uk/insolvency

 

Might also be worth giving Businessdebtline a call

 

http://www.bdl.org.uk/

 

Best wishes

Edited March 13, 2012 by Wintry

[debtinfo]

yes in your situation, probably business debtline will be the most appropriate one

[bake]

hi agree. bin there dont pay go and get free advice, and do your self hope everythingruns ok , regards bake,

[olympic1805]

Hi there, thanks for all the posts, havent replied because i am still dithering what to do, I just cant get my head round the bankruptcy, i feel such a failure doing this. I have just been fobbing people off saying we are going to file, but still havent...then the tax man called last week, and told him the same but i need to decide what to do, just keep burying my head and not opening post....

[AuntyAlice]

Maybe talk to someone? National Debtline - 0808 808 4000

 

Good luck with it.

[olympic1805]

Thanks , have done and they roccommend bankruptcy, was told to look on it as a business strategy...but its a hard pill to swallow, as do feel partly to blame even though we have had some blows from the HMRC, that weren't our fault...just sat filling the bankruptcy forms in now....

[AuntyAlice]

Well done

 

There are some good guidance notes on the Insolvency Service website, if you need them.

[sequenci]

Maybe talk to someone? National Debtline - 0808 808 4000

 

Good luck with it.

 

Go with BDL, it's the same organisation; the BDL staff are trained in both personal AND business-related matters. Best wishes