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| paulgm_2000 |
Posted - 26 June 2010 : 14:55:35
Hi everyone,
I have been in an IVA for about 18 months with paying around £365 a month on a £66,000 total debt.
I had to enter an IVA because my business went bust and but as I still had another business I couldn't declare myself bankrupt at the time.
The business I have today is now going from bad to worse and I have had to take another part time job to make ends meet.
The only money I now take from my business is £365 a month which is just paying my IVA. I live off the money I earn from a part time job and some money that is owed to me from friends.
I wonder if someone could answer some of my questions?
1. As I have no assets other that a Limited Company which is about to fail is Bankruptcy the best solution?
2. My fiancee is about to buy a house and I will move in with her. Will this have any implications for my bankruptcy and for her?
3. We are due to get married in May 2011 will this have any implications?
4. I have some assets within the business about £2000 or £3000 worth of computer equipment. Should I try to sell this before bankruptcy? What will happen to the equipment if I can't sell it?
5. I have a 30% shareholder in my business would the bankruptcy effect him?
6. Who should i speak to for advice? My IVA company? Any other body?
Many thanks for your help, I have used the sister site iva.co.uk for a long time now and it has been fantastic.
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| 5 L A T E S T R E P L I E S (Newest First) |
| Bridgewood |
Posted - 07 July 2010 : 12:08:15
Hi Paul
If your business is a limited company you have to treat it separately to your personal financial affairs, and the assets of the company should be utilised in payments to the creditors of the company first - only after all the creditor claims have been paid can any company money go to the shareholder
It would be safer to get professional advice on what to do with the company before doing anything else - either from the IP dealing with your IVA or one of the experts on this site
I wouldn't resign as a director of the company before tying up all its loose ends - and if it's insolvent you need advice on what you should and shouldn't do and how to ensure you comply with your duties as a director
Good luck
Bridgewood specialise in helping people deal with their debts and make the most of their financial situation - providing free, no obligation debt advice.
We can also setup a complete range of solutions including debt management plans, IVA and bankruptcy support. |
| paulgm_2000 |
Posted - 07 July 2010 : 11:07:37
Hello again,
I have now taken advice from my IP who have explained the situation to me.
I first need to resign as a director of my company and wind it up then fill out the bankruptcy forms. They will be able to send my the IVA failure form which I will also need to proceed.
The advice I was given was to NOT tell the Official Reciever my personal bank account details as they would probably close the account then have to reopen it again after 10 days or so.
My questions is that I have two personal accounts just to separate money for bills etc, so should I NOT declare both of these accounts. Neither account has any credit facility.
Also, I may also be able to sell off some of the equipment from my business before entering bankruptcy. What am I able to do with the proceeds? I would like to pay some to my shareholder and obviously some to any outstanding creditors but can I take any more myself? It would be used for the fee to go Bankrupty anyway.
I'm sure I have more questions, but thanks in advance if anyone can help.
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| debtinfo |
Posted - 26 June 2010 : 17:09:22
Bankruptcy is usually for 1 year, it can be less and occasionally more if you dont co-operate
The OR looks at your income and then deducts a fair share of the household expenses plus any personal expenses (there are guidelines as to what is allowed or not)and that leaves you with what is deemed as your surplus. If your surplus is more than £100pm then you will be asked to pay between 50 and 70% (depending on the size of the surplus)for 3 years (this is called an Income Payments agreement (IPA))
The IPA must start before you are discharged and lasts for 3 years from when it starts. If you dont have a surplus more than £100pm at any point before you are discharged then you will not have to pay any payments
You will need to check your agreement some have a bankruptcy clause some dont. If it doesent (which is more common) then you will have ti fill in the forms and pay for this yourself (£600 at the moment) |
| paulgm_2000 |
Posted - 26 June 2010 : 16:56:19
Hi,
Thanks for such a quick response, very much appreciated.
I will speak to my IVA supervisor first before I make any decisions then. I am simply trying to work out what would be a better solution for our future and, as we are planning a family, the best solution for that too.
I am considering bankruptcy to give myself a new start and not be saddled with debt for years to come. I would have gone bankrupt after the failure of my first business but tried to start another business to trade out of it and pay back some money to my creditors.
Could someone tell me once I have been discharged(usually one year?) do I have to pay part of my disposable earnings after that? I have been told that I have to pay 50% of my disposable earnings for 3 years after being made bankrupt.
As I am in an IVA at the moment if I simply stop making payments will I automatically be made bankrupt or do I still have to pay for the bankruptcy myself?
Many thanks again for your help! |
| debtinfo |
Posted - 26 June 2010 : 16:02:08
1.Thats a decision that you have to take, we can tell you what is likely or not to happen in a bankruptcy versus an IVA, but the decision as to what is best is yours to make.
2. Not as far as the bankruptcy itsself is concerned, if she had a house and you had contributed for many years then their could be a problem, but is she is only just getting it then it should be fine. Regarding credit ratings if you have joint financial products then this can impact on her ability to get credit later.
3.None
4.Is it a limited company, if so then the assets of the company should go towards paying the companies debts first.
5. Not if you are closing the business.
6. Before leaving an IVA you should always speak to your IVA supervisor as they may be able to come up with a better solution that keeps the IVA running, Once the decision to stop the IVA is made then any of the debt charities CCCS, CAB, national debtline, Business debtline will give you free advice
Hope that helps |
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