| Author |
 Topic  |
|
cozh
Junior Member
179 Posts |
 Posted - 28 May 2008 : 09:51:24
|
I was self employed from 1999,in 2002 i went over the VAT threshold but didnt know until the following year as i had difficulty with book keeping. When my accountant told me he said that i could owe customs thousands,this scared me as i had no spare money, my wages had stayed the same (approx £100 to £150 per week). I had a market stall and had been selling everything really cheap.The sales declined after this due to council decisions on car parking and relocating the market etc so in 2004 i decided to take on a fruit and veg shop which proved to be disastrous.
I mixed up money from the market to keep it going and used personal loans and credit cards to pay for the business and eventually to repay monthly payments between the loans etc. I closed the shop after 8months but was still on the lease and owe about £10000 rent (i am on the lease until 2010) and altogether with loans etc appprox £40000.I ceased being self employed in december2006 and have worked night shift at a supermarket since may 2007, earn approx £700p.m. I have lived with my partner for 14yrs and he bought a house 13yrs ago. His name is on the interest only mortgage and both names are on the life assurance policy he had to take out to pay the mortgage at the end of its term.
We visited the citizens advice bureau 2 years ago when i realised the mess i was in and they brought in an insolvency practitioner who said that the official receiver, if i declared myself bankrupt, would say that i had beneficial interest in the house. She suggested i do an IVA through her and remortgage the house for £50000(my partner is in debt too) to pay debts and her fees. We didnt return as wouldnt be able to make the mortgage repayments on that ammount and i suppose i have buried my head in the sand ever since.
Two weeks ago i received a letter from 'customs' saying they have records of my turnover and i should have been VAT registered etc and i should ring them for a home visit or they will start an investigation. I havent rang as i am now petrified. My books are a mess and i didnt fill in my tax return for the final year as i couldnt afford the accountant, i still owe him £150. The C.A.B. advised to stop paying debts as i couldnt pay one and not the other.
I have booked in at Birkenhead court for 4th June for bankruptcy but dont know if i'm doing the right thing as i am worried about my partner losing his house. I have to do something as our lives are at a standstill, I have a 13 year old daughter and cant plan for her future and a 22yr old stepson who we would like to be able to help out but cant plan anything. I started a college course last year but had to put on hold, the doctor said it was acute stress and anxiety. I realise that all of this is my fault, bad decisions and lack of book keeping etc but i now feel desperate for help. Would the house be taken and would bankruptcy stop the VAT investigation as i dont feel i could handle it all. I would be extremely grateful for any advice and i apologise for the length of this email, i wanted to try and give as much info' as possible. Thanks
|
|
|
JulianDonnelly
Junior Member
United Kingdom
325 Posts |
Posted - 28 May 2008 : 10:45:22
|
Hi Cozh,
From the information you have provided, it is clear that bankruptcy is the best way forward for you. In respect of the property, steps can be taken to protect your partner's interest prior to bankruptcy. I would suggest calling the helpline to discuss this.
Regards
Julian Donnelly
Spokesperson for www.Bankruptcyhelp.org.uk |
 |
|
|
cozh
Junior Member
179 Posts |
Posted - 28 May 2008 : 12:21:06
|
| thanksfor the reply, i have rang the helpline several times and left my tel no. but they must be busy. I'm just panicking coz the bankruptcy is only a week away and i'm worried about the house and the VAT issues. |
|
|
|
JulianDonnelly
Junior Member
United Kingdom
325 Posts |
Posted - 28 May 2008 : 12:22:27
|
Hi Cozh,
If you ask them to pass a message directly to me, I'll call you back.
Regards
Julian Donnelly
Spokesperson for www.Bankruptcyhelp.org.uk |
|
|
|
cozh
Junior Member
179 Posts |
Posted - 28 May 2008 : 14:37:48
|
| Thanks, i've done that. I was wondering if anyone has experienced a similar situation eg, live in partners house prior to bankruptcy. Have they lost the house. Also will bankruptcy clear the VAT investigation. My partner bought a car a month ago with a loan he took out (cost 3k, he has receipts etc and proof of loan).We share the car for work and taking daughter to school. The car is in my name for insurance reasons, will the official receiver take this. I'd be grateful for any replies. Thanks |
Edited by - cozh on 28 May 2008 14:40:10 |
|
|
|
JulianDonnelly
Junior Member
United Kingdom
325 Posts |
Posted - 28 May 2008 : 14:50:24
|
Hi Cozh,
My personal situation was remarkably similar. As long as the house is in the partner's sole name, then the OR can't touch it. As the car is in your name, you will need to bring the OR's attention to the fact the registered keeper (name on the V5 document) and legal owner don't have to be the same people - this is where the receipts and proof of loan will come into play. I don't think you'll have any issues at all.
Regards
Julian Donnelly
Spokesperson for www.Bankruptcyhelp.org.uk |
|
|
|
m and v
Average Member
United Kingdom
760 Posts |
Posted - 28 May 2008 : 15:00:03
|
Hi cozh
I drive my husbands car (in his name, his insurance etc) I also drove a car last year that was my husbands that was insured in my name (i have better no claims bonus - it was cheaper to insure). Although the OR asked lots of questions about them to establish true ownership to date I have not heard anymore about them.
Vicki x |
|
|
|
cozh
Junior Member
179 Posts |
Posted - 28 May 2008 : 16:19:55
|
Thanks. The C.A.B. and national/business debtline have said that the OR would say that i have beneficial interest in the house having lived here for 13yrs, hence my panic.It is only in my partners name but both names are on the life assurance which was to pay off the house. They also gave the advice on the car, that it would be taken too. Would the VAT investigation still carry on with after BR as i wouldnt be able to put an actual figure for VAT on the statement of affairs as i dont know what it is. I am very grateful for your reply as this has been going on for so long and i've been putting off dealing with it which has probably made things worse, including my state of mind. I am really worried about the whole bankruptcy process and now know how desperate people in debt can feel. Thanks |
|
|
|
cozh
Junior Member
179 Posts |
Posted - 28 May 2008 : 16:22:58
|
| Thanks. The build up to the BR is proving to be very stressful, i suppose its because i'm finally facing up to things. I'm very grateful for your reply, its given me some hope. |
|
|
|
JulianDonnelly
Junior Member
United Kingdom
325 Posts |
Posted - 28 May 2008 : 16:40:34
|
Best of luck - you'll sail through it!
Regards
Julian Donnelly
Spokesperson for www.Bankruptcyhelp.org.uk |
|
|
|
cozh
Junior Member
179 Posts |
Posted - 28 May 2008 : 17:55:22
|
| Thank you so very much for your call and advice, i can't thank you enough. I would never had realised or believed how awful debt can make you feel unless i'd experienced it and i'm so very grateful for your kind words and sound advice and i would reccommend you to anyone undergoing debt problems. My apologies for the end of the call as i became very emotional - i think a result of a build up of worries etc and i was so relieved with your words of hope. My very sincere thanks x |
|
|
|
henrytc
Junior Member
United Kingdom
194 Posts |
Posted - 28 May 2008 : 18:02:29
|
good luck cosh,remember your not alone and you won't be the first or the last.
Tracey X
|
|
|
|
m and v
Average Member
United Kingdom
760 Posts |
Posted - 28 May 2008 : 18:35:54
|
Good luck - we've all been there!
Take care
Vicki x |
|
|
|
abd
Junior Member
284 Posts |
Posted - 28 May 2008 : 19:50:32
|
Good luck, Cozh, never worry, remember that going bankrupt is about a new start.
Abd |
|
|
|
debtfreesusie67
Junior Member
256 Posts |
Posted - 28 May 2008 : 23:12:31
|
Good luck Cozh
Sue |
|
|
|
cozh
Junior Member
179 Posts |
Posted - 29 May 2008 : 02:07:38
|
| Thank you all so much for the comments, they are VERY appreciated. I am so glad that i found this site, its so helpful to hear from people who have had similar experiences. Sincere thanks |
Edited by - cozh on 29 May 2008 10:17:34 |
|
|
|
Topic |
|
i now feel desperate for help
