Hello, please anyone help me??

[redstone79]

Hello

 

I have over the past 3 years run up credit card debt which i had an agreement to pay back about 12,000 in total.

 

I was made redundant twice in this time and unemployed for some time.

 

Beginning of 2011 i set up as a ltd company and got work coming in myself for a few months but not enough to pay the mortgage in full and i fell behind.

 

The work dried up, but I also broke up a long term relationship and had to care for my dad who died of cancer in October,

I knew i was really depressed and had to do something drastic for my own sanity,

so buried my head in the sand and with the small amount of money i had saved went to look for work in Australia, stay with friends and get mentally healthy.

 

I have returned to a CCJ from the Nationwide for the mortage (I dont mind losing the property its in negative equity and lots of bad memories)

 

I would like to know what to do in what order so that i dont have to pay back the arrears as i cant afford it,

* do i declare bankrupt before attending the ccj?

*Do i try to offer some payment as part of ccj and put off going bankrupt to keep my business running?

*Should i take any money i do have left over out the bank to pay friends before hand?

* Do i be honest about what i did as it sounds as if i ran away from the responsibility (which i did really)

* can i still be self employed after this as the ironic thing is in the next 3 months i have been promised quite a lucrative contract.

 

So confused and this is a life changing thing i want to get right.

 

I am mentally and physically healthy now and that to me is THE most important thing but i want to do this right.

 

I ultimatley want to sort the debt and be in a position to run my business pay off a little of what i owe and start life again.

 

Thank you in advance.

[Conniff]

Welcome to the forum redstone.

 

Bankruptcy would automatically put an end to a limited company, so that isn't your way out as there are also a lot of other restrictions that come with it.

 

An IVA is termed by many as the closest thing you can get to bankruptcy without actually being bankrupt, however, any creditors would be wary of doing business with a company that is in IVA especially if there was still the need for credit for stock.

 

Someone else will probably be along that can offer more help, but it is weekend, so be patient.

 

One thing is for certain, don't talk to any commercial enterprises that say they can get you out of debt especially those that claim they can get 75 percent of your debt written off, they double your debt with their charges.

 

There are charities that can help you, and the one in mind at the moment is CCCS - http://www.cccs.co.uk/

[citizenB]

http://www.nationaldebtline.co.uk/england_wales/page.php?page=35_options_for_dealing_with_your_debts

 

Attached is a Fact sheet from National Debtline - there are several ways of sorting out debts.

 

It might be worth having a word with them to see which option might be best for you - obviously it is no one's best interest that you go bankrupt and if your debts only total £12,000 then you might be able to find a way in which you dont have to. A Debt relief Order is for debts under £15,000 and you will be debt free within a year - although I think your credit record will be trashed for 6 more years.

 

However, if you no longer have any assets then ironically, this would be the best time for you to declare bankruptcy and to ensure that all debts that can be included, are

[toddle2u]

Bankruptcy would automatically put an end to a limited company

The OP's Bankruptcy would mean that he could no longer be a Director of the Ltd Company not necessarily the end of it as it is a total seperate legal entity from the OP. Ther BR does not someone else being a Director and the OP can become an employee of the company.

 

however, any creditors would be wary of doing business with a company that is in IVA

Again 2 seperate things a Ltd Company cannot be in an IVA. Howevver a Director of a Ltd company can be

[Wintry]

Hello

 

I have over the past 3 years run up credit card debt which i had an agreement to pay back about 12,000 in total.

I was made redundant twice in this time and unemployed for some time. Beginning of 2011 i set up as a ltd company and got work coming in myself for a few months but not enough to pay the mortgage in full and i fell behind. The work dried up, but I also broke up a long term relationship and had to care for my dad who died of cancer in October, I knew i was really depressed and had to do something drastic for my own sanity, so buried my head in the sand and with the small amount of money i had saved went to look for work in Australia, stay with friends and get mentally healthy.

I have returned to a CCJ from the Nationwide for the mortage (I dont mind losing the property its in negative equity and lots of bad memories)

 

I would like to know what to do in what order so that i dont have to pay back the arrears as i cant afford it,

* do i declare bankrupt before attending the ccj?

*Do i try to offer some payment as part of ccj and put off going bankrupt to keep my business running?

*Should i take any money i do have left over out the bank to pay friends before hand?

* Do i be honest about what i did as it sounds as if i ran away from the responsibility (which i did really)

* can i still be self employed after this as the ironic thing is in the next 3 months i have been promised quite a lucrative contract.

 

So confused and this is a life changing thing i want to get right.

 

I am mentally and physically healthy now and that to me is THE most important thing but i want to do this right.

 

I ultimatley want to sort the debt and be in a position to run my business pay off a little of what i owe and start life again.

 

Thank you in advance.

 

Hi

 

Much more information needed before anyone can realistically guide you further and in my opinion you need full independent advice on all options

 

When you say CCJ for the mortgage, do you mean a possession hearing?

 

What is the approx level of neg equity?

 

Have you any other assets?

 

Income / Expenditure details?

 

Could be worth giving Business Debtline a call / look (best to have all details of your circumtances and business at hand before calling)

 

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

 

Also Useful CAB & Insolvency Service bankruptcy info & guides here -

 

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

 

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

Edited May 19, 2012 by Wintry

[dx100uk]

and investigate PENALTY charges & PPI reclaim on the credit card debt.

 

dx

[redstone79]

Hi all

 

Thank you so much for taking the time to respond - just having someone answer has been great.

 

My brother has agreed to become a director of my ltd company which actually has no debt at all - this will allow me to carry on a vehicle for earning money is this correct?

 

Personally I have a posession order from Feb that i was not able to attend and they have put the property up for sale. I owe £7000 approx in mortgage arrears and the property is 10-15k in negative equity which i believe they will want from me as part of the process?

I then have credit cards i used to try and dig myself out the whole plus a little council tax, ground rent etc which comes to about 16k.

 

I have 1k in the bank and thats it - no work coming in and no other assets as sold cars and things previously.

 

So i assume that i will get the final amount owed from the CCJ - declare bankrupt writing off all debt and work through the ltd maybe if i cant get a full time job.

Although I have been told i can never get a mortgage or RENT anywhere with a CCJ on my record?

 

Does this sound like the right solution??

 

Appreciate anyone gone through it and the rest of you guys for advice.

[citizenB]

It will be extremely difficult for you to obtain a mortgage if you have a CCJ, I really dont know about renting a property. I think Shelter might be able to help you with advice re renting.

 

Bankruptcy will be the biggest blight I would have thought.

[brokebutnotbeatn]

To rent with a CCJ you would need to produce 6 months rental in advance.