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| neilw |
Posted - 26 October 2008 : 11:22:00
Hi, I am a small businessman and the works dried up to the point where I only pay my way by the good grace of friends so I am considering bankruptcy. Questions I have immediately are:
1) If I give my motorbike to someone I have borrowed from, to pay back that debt (its the same value), will they be able to keep the bike once I go bankrupt?
2) My house is mortgaged with no equity left in it, if I go bankrupt will I be forced out straightaway by the bank repossessing it, or do I have some time to find somewhere cheap to rent? I live with my 17 yr old daughter so not sure if that affects anything?
3) Can a friend by the Title to the property for £1 like I read here, or does it go to the bank? If they buy it then do they have to pay the bank the amount of the mortgage?
4) When I go bankrupt, whilst I remain in the house for whatever period, do I have to pay rent to the Bank/Court?
Thanks for your help, this is a glimmer of hope |
| 5 L A T E S T R E P L I E S (Newest First) |
| neilw |
Posted - 26 October 2008 : 20:58:53
Thanks again for your advice John. |
| John |
Posted - 26 October 2008 : 19:04:08
Hi
first of all if you were to decide to declare yourself bankrupt you would no longer be able to continue as a director in either company.
You would need to resign from both and in doing so the £14K you invested would now become a debt owed to you. The OR overseeing your personal BR would have to be informed and he would no doubt claim the £14K from the limited company.
www.Bankruptcyhelp.org.uk
0800 078 9367 |
| neilw |
Posted - 26 October 2008 : 16:41:31
I have a further question. I am a Director of 2 businesses. One is recent and that business has just a few hundred pounds in the bank; I'm a silent partner in the other which has a turnover of £120,000 but after all expenses/suppliers and the main partners wages have been paid the profit is minimal and the dividend payout nil, though I originally invested £14,000 in it which the accounts show as caiptal. The partner can't afford to buy me out and if we sold it he'd lose his income.
What is the situation regarding these 2 Directorships?
Thanks again for your help. |
| neilw |
Posted - 26 October 2008 : 16:34:48
John, thanks for your prompt and clear response, it's very much appreciated. |
| John |
Posted - 26 October 2008 : 11:39:52
Hi Neil
1) The bike transfer is not a good idea as the OR will likely undo the transaction as it is both preferential treatment and a transfer under value.
Neither are permitted.
2) You would not be forced out at all if you could keep up the mortgage payments but if that's not possible the lender will repossess. Until such times as the lender acquires an eviction order from the court you can stay in the property and no rent is due to anyone.From the 1st misssed mortgage payment this is likely to be 4 more months or longer.
3)If there is obvious negative equity you can indeed nominate a 3rd party to purchase your BI for £1 + £211 legal fees. But if you cannot continue to meet the mortgage payments this would be pointless as the lender will repossess.
4)Please see 2 above.
www.Bankruptcyhelp.org.uk
0800 078 9367 |
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