| T O P I C R E V I E W |
| dumb_blonde |
Posted - 08 January 2010 : 11:07:54
Hi All - this is my first time here and I have joined as I feel I'm running out of options and feel my finances are getting on top of me.
As such I'm considering bankruptcy but I'm not 100% certain if this is the best or only option open to me - HELP please!
My Husband (separated) and I ran a business which still opperates to profit (not sure how much at present though ex states its about to go under) of which I'm a 50% share holder, but at present not drawing any income from as I no longer have any involvement.
I live in rented accomodation whilst my ex retains the family home which is mortgaged with me as a joint owner - current value circa £165K with mortgage £189K ie £24K negative equity.
I have personal debt circa £30K through Director loans and personal credit cards. Also there is £50K overdraft on the business
I have considered IVA but can not afford the repayments and as I have no assets to lose (only have a car value circa £4500) my perception is that BR is my only route. I'm a single mum living in rented property with a small income - my situation is causing me great concern as I have been putting this matter off for months now but realise I have to face it to enable me to move forward.
Please help with advise on what my options are as I feel confused and concerned as to which route to take...
Thanks
DB |
| 15 L A T E S T R E P L I E S (Newest First) |
| Housing |
Posted - 31 January 2010 : 10:26:55
I agree with gettingoutofdebt.
Experts here give their responses to people for free and do not use the site to gain...
I am sure that admin will block the link to your website
"Life is generally something that happens elsewhere" (Alan Bennett - author and one of my best heroes!!) |
| gettingoutofdebt |
Posted - 30 January 2010 : 14:35:52
Personal Guarantee - Please do not spam this board with advertisements for your company.
If you wish to assist the original poster then provide information related to their questions/situation rather than trying to pick up more clients. |
| Personal Guarantee |
Posted - 30 January 2010 : 14:20:06
No advertising allowed.
admin. |
| Reviva UK |
Posted - 09 January 2010 : 20:38:50
Hi
Sounds to me that the car will be fine because you need it for work.
You will however need to go over financial situation with regard to the business, what you have invested etc.
It is 100% probably that your ex / Ltd company will be pursued for investments made as you are a creditor and the money will be due to your Br estate.
definately worth a discussion with ex so he can understand the position he is likely to be in.
Preparation is everything so take it slowly and make sure you have covered everything.
Paul Johns
Bankruptcy Specialists
Reviva UK
www.revivauk.com
Real People ..... Real Debt Solutions |
| debtinfo |
Posted - 09 January 2010 : 15:47:27
Hi dumb blonde, this is the guidance for when a vehicle can be considered exempt
http://www.insolvency.gov.uk/freedomofinformation/technical/TechnicalManual/Ch25-36/Chapter31/part2/part3/part_3.htm |
| dumb_blonde |
Posted - 09 January 2010 : 15:35:58
I would require a car.. I work out in the sticks, not a local bus route that covers that way. And I would question if not allowed because a have a young child.
DB |
| debtinfo |
Posted - 09 January 2010 : 12:09:59
Other reasons that an OR might exempt the car as housing says is if you are seeking employment or are self employed. The OR can use their discretion. obviously some one who has just lost their job will be given more leeway than someone who has never worked |
| Housing |
Posted - 09 January 2010 : 11:50:35
Hi Dumb Blonde
Just to say, I agree in principle with what Jane has said about a car and the OR. There are always exceptions:
I had a car worth £10K or so, it was on finance with Black Horse. I discussed it with the OR at my main interview (the one that lasted nearly 10 hours!) The OR instructed a valuer to sell by tender.
That was done, the car was taken and sold, the valuer took his fee and paid the OR the net - Black Horse lost out completely and I am not proud of that.
The valuer then called me to say that I can find a car to the value of £2K and they would pay the dealer. I found a lovely car for £1,995 and the valuer paid the dealer.
I am not in work and the OR knows that - I have not questioned it.
I am not sure if each OR has discretion or whether my face fitted or what - but it shows that you do not necessarily need to be in employment - I hasten to add I am seeking work, just not landed a contract as we speak.
I hope my experience gives you some hope and wish you well. Richard
"Life is generally something that happens elsewhere" (Alan Bennett - author and hero of mine!!) |
| Jane.l |
Posted - 09 January 2010 : 11:27:56
do you need the car for work purposes?
I know you have changed your car to within the £2000 limit but you will only be allowed a car in bankruptcy if there is no public transport and you need it for work |
| dumb_blonde |
Posted - 09 January 2010 : 10:57:48
Hi Richard,
Thanks for your comments, I realise I need to plan the BR in relation to the business.
Sounds brutal but Ive given numerous opportunitys to save the investments made.. but I know to secure that I would have to be involved and its not the way forward.
So Im more than happy to take it down with me.. this situation is not of my doing more down to my ex being spiteful.
In the last 6 months, Ive lost my home, business, and my pets, because I couldnt take them into rented.. Ive been through the hardest part..
Im back on my feet and im ready to sort this out, im not blind to the fact being BR will have its pitfalls for the future, but im sure its manageable.
Will keep you posted.
DB
Ive been handling my debt for the last 6 months.. |
| Richard P |
Posted - 08 January 2010 : 23:04:09
GO FOR IT GIRL, DUMB BLONDE are you serious, the name appears wrong !
you can see who ran the business !
the only thing i can add is do not rush into BR, you have started to make certain that every thing is inorder but you do not want to go all through BR and then find just as you are about to be discharged, that the old business drags you back.
I am not certain of all the ins and outs but it can be complex with circumstances similar to yours, seek guidance to make certain that all ties are severed
good luck look forward to hearing your progress
regards Richard |
| dumb_blonde |
Posted - 08 January 2010 : 19:09:59
Thanks to all who have replied..
I guess im not alone in this situation..and as they say knowledge is power..
With reference to the business, ive offered my ex the option to release DLA that i have invested which is the result of 90% of the debt i owe, on a repayment plan..as the business is not in a position to repay a lump sum.. he is not prepared to play ball and is very dismissive.
Ive today sold my car and replaced with a cheaper model within the 2K value..
Ive pretty much come to the conclusion BR is the way forward for me, I have limited funds available after outgoings.. and feel even if I could afford designed payment plans, the business may still pull me down.. as my ex is not business minded and uses it as his piggy bank..
Br would also give me a clean break from the business relationship with my ex, which is a constant drain emotionally.
Im still open to advice... and would welcome any suggestions.
DB |
| Richard P |
Posted - 08 January 2010 : 14:34:27
Hi DB
sorry to read about your situation
some great advise already given
the only point that i would add is if you and ex are still on speaking terms, I would suggest having a discussion with one of the experts, when both of you are present.
All actions taken by you or him, WILL have a direct response on the other party.
It can be quite complex with a business involved and again if it is not managed properly, ideally you would want the whole thing sorted at the same time.
My wife found having a coffee with Paul and Ken at reviva fantastic as it helped her / us understand the full situation, we were able to tell the difference between Myth and fact
good luck, It does become easier and the confusion starts to lift
What type of business do you both run ?
regards Richard |
| gettingoutofdebt |
Posted - 08 January 2010 : 12:52:17
Hi,
If you declare BR then:
- Any joint debts would revert to the other person so your ex would be liable for the repayments and chased by creditors if he didn't keep up with the repayments.
- Any car over £2000 would be taken by the OR and sold with the profits going to your creditors. If the OR believes that you need a car for traveling to/from work then they would give you £2k back from the sale of your car so you could buy another one.
- If you have a 50% stake in the business then the OR would want to investigate this for any possible profits/assets that could be released to be paid to creditors.
I don't have a lot of experience/knowledge regarding businesses and BRs so would suggest you speak to either (or both) of the below companies:
Reviva UK: http://www.revivauk.com/
Jones Giles - http://www.jonesgiles.co.uk/
They both post on this board and are very highly respected and you will get some very good advice from them. |
| Blackie |
Posted - 08 January 2010 : 12:51:18
Hi dumb blond
It certainly sounds as if bankruptcy may be your best option and if I can answer your specific queries:
It sounds as if you are a director of a company which you own with your ex. You will have to resign if you become bankrupt. As a director, though, you may be implicated if the company goes bust. However your shareholding is not worth anything.
If you were to become bankrupt, there should be no problems with regard to a roof over your head as it is rented. The matrimonial home, where your ex lives, is in negative equity and you are not interested in the property. Neither will the Official Receiver be interested.
I am assuming that your business is a limited entity because you talk about directors loans and business overdrafts. All of this should be taken care of if your business is wound up legally unless you hold personal guarantees, which can be included in your bankruptcy.
The worth of your vehicle may result in its loss if you become bankrupt. The rules state that you should be able to keep a vehcle if it is valued at under £2-2.5K. Any vehicle worth over that amount may be taken although the Official Receiver has to give you between £2k and £2.5K in order to purchase another vehicle especially as it sounds that you need transportation.
Depending on your circumstances, a bankruptcy will cost you either £360 or £510 (£522 if you live in London and have to make yourself bankrupt at the High Court).
I hope that this answers some of your queries but please feel free to come back should you have any further questions.
All the best
John Blackadder
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