| T O P I C R E V I E W |
| SKA |
Posted - 28 March 2008 : 11:34:46
I've been advised that bankruptcy may be the best option for me and I have started to seek more information. My main reason for considering an IVA was so that I could keep my car on HP (required for work). If i do proceed with bankruptcy am I right to assume I would lose the car or would I just have to maintain payments?
Thanks, |
| 15 L A T E S T R E P L I E S (Newest First) |
| melanie_giles |
Posted - 01 April 2008 : 15:15:16
Well as that would be unenforceable, then I think you can safely disregard this point. |
| introuble |
Posted - 01 April 2008 : 14:11:53
Hi Melanie,
Sorry another question. It says on my Secured lending that I must not allow for a petition for Bankruptcy to be rasied against me. It is for some equipment and Van that I have.
What do they actually mean by that. |
| melanie_giles |
Posted - 30 March 2008 : 23:17:09
Sounds like bankruptcy is exactly the sort of fresh start you need right now. Make sure you let us know how you get on at Court and the outcome of your OR's meeting. |
| introuble |
Posted - 30 March 2008 : 22:27:07
That was exactly what I thought but just wanted some clarification.
You have been a great help many thanks for your support.
Just need to get this sorted and then sort out what I am going to do with the rest of my life. |
| melanie_giles |
Posted - 30 March 2008 : 22:20:09
There is no right or wrong answer here - declare them in both places so that the OR knows what you are trying to say. |
| introuble |
Posted - 30 March 2008 : 21:41:52
Hi Melanie,
So to clarify should I actually declare thhem as items specifically in section 6 or as I have currently within my reasons for Bankruptcy section?
Regards
|
| melanie_giles |
Posted - 30 March 2008 : 20:52:52
They do not sound like preferential payments to me, but if you explain what happened on the forum that ought to be fine. |
| introuble |
Posted - 30 March 2008 : 17:46:25
The VAT bill I just paid was £3000.00. i.e. managfed to sell a fair bit of assett. I had it in my VAT appotioned area. As you say the money is the HMRC's as soon as the payment is handed over. You are just holding it in Trust.
Should I declare this VAT and the actual settlement of some creditors i.e. section 3.6 as a preferential on my form, i.e. I sold some assets and settled debt. However it was not with the direct intention of improving a position I just was trying to remove monthly payments to try and keep my business a float? I just don't like the wording on the form as it is basically asking you to confirm if it was done with the express intention of making their position better. More it was done to just get rid of some debt
A bit of guidance on that would be great additionally at this point he words BR had not even been uttered by me. I just want to know if I should declare it. I have detailed it all in my reasons for decalring bankrupt.
Regards
Regards |
| melanie_giles |
Posted - 30 March 2008 : 17:36:09
HMRC have no preferential status these days, but there is an argument that the money you owe them was never yours to spend in the first place. Given that the amount you refer to is relatively immaterial in the great big scheme of things, whatever you do is unlikely to be too relevant. |
| introuble |
Posted - 30 March 2008 : 17:19:20
I was always taught that as the VAT money was received you really ought to always pay i.e. You had the money actually paid to you which really should have been put to one side. i.e. He can put you in prison???
I have just paid a VAT bill in full which became liable as became due from sales of assets to settle secured lending. Therefore I felt it was correct to pay him in full??. I have never allowed VAT to form part of the DEBT repayments so IMO that was correct.
At that point I was not actually even considering BR.
The VAT liability that is currently showing is from ongoing business sales so I will probably just leave this as an asset for the OR.
I have always run the business this way. Where I suppose the temptation is to take the money and settle other debt I suppose in a way have I been preferential???
Regards |
| melanie_giles |
Posted - 30 March 2008 : 17:14:21
HMRC have a help desk at most of the main tax offices which will help you finalise your accounts if you cannot afford to pay for an accountant and do not have the ability to do it yourself. This will also link in with your claim for Child Tax Credit as well.
You should only pay creditors now if you can afford to, and if you are going to pay anything make sure it is on a proportionate basis. |
| introuble |
Posted - 30 March 2008 : 16:49:23
Hi Melanie,
Many thanks for that. Additionally with regards to my accounts for business as I have been using an accountant how do I close down my final accounts if I am no longer trading. i.e. If I have not got the money to pay for it how do I declare my income etc. Also I have to do something as I have Child Tax Credits so defo need to tell them my income as declared on my return. Or is this something the OR will deal with. I obviously cannot incurr a debt re accountancy fees as in my mind that is preferential treatment.
I also have a VAT bill that will become due in a few months only a few hundred punds about £300.00. Should I use this money to pay creditors or defo keep this money apportioned to the VAT man.
Regards |
| melanie_giles |
Posted - 30 March 2008 : 16:36:01
First of all to your first post - getting discharged from bankruptcy means that you are discharged from the restrictions imposed by it - such as they taking of credit, the need to declare your bankrutpcy to suppliers, and the denial of carrying out certain occupations.
With regard to the secured charges on your assets, if they are essential to your business the OR may well allow them to be retained, so long as you can afford to make the ongoing finance payments and that the secured lenders do not want to take posseession of the assets under the terms of their loan agreements.
If a sale of the assets is likely to create a shortfall, I would leave that side of things to the OR to sort out to be honest. |
| introuble |
Posted - 29 March 2008 : 21:09:35
Sorry still having trouble posting new messages:
As part of my debt I have secured lending an a van and some plant equipment. I have detailed this on my petition.
I may have two options. Is there anyway at all of me keeping hold of this equipment but being able to have it in the pot but then buy it back for a nominal sum??? Or am i being a bit of an optimist seeing as doing what I do got me into this trouble through lack of work but with a clear slate and additional employed work it may now work?
Or alternatively there is potentially a good chance of selling before petitioning. Is there any issue over this aslong as the money is used to pay back the debt. Should I try and get what I can for it and any shortfall pass as an unsecured debt. We are talking around £18000.00. Possibly a little equity in it.
Or alternatively can it pass to the Creditor pot but I could still try and sell it for the OR i.e. I can find the best place to sell it through business contacts and then any shortfall passed as a unsecured debt??
If I think that it may be sold with a shortfall after the petition should I include a figure of potential unsecured debt?
Mainly wondered if I should try and sell first.
Regards |
| introuble |
Posted - 29 March 2008 : 20:45:13
Many thanks for this info, another question if I may:
What is the difference in real terms between Discharged and Undischarged. If I am Undischarged I understand the protocols exist. Once discharged does that mean the restrictions on gaining employment in say Financial Services come into play again.
Just try to get a handle on the differencies between the two terms. |
