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maxpower
Starting Member
22 Posts |
 Posted - 21 March 2011 : 20:02:02
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I must apologise for this long complicated post.. but I am beginning to get scared and I am second guessing my going forward with a bankruptcy petition.
I have sought advice from a debt adviser who said I was a perfect candidate (but was going to charge £2K for their help). I have since been reading and informing myself of the process, to see if paying this sort of money for help is justifiable or needed.
Armed with help and information from here and other sites I was going to go forward on my own. But now that the court date is a week away I am panicking. Should I be getting real debt advice from someone and be thinking about an IVA instead?
A not so brief synopsis.
I started an online retail store 6 years ago. (Registered as a limited company). I borrowed heavily, around £70K personally. Through various mistakes in those first couple of years I could do nothing to lower the debt more then a few thousand pounds, and actually probably increased it by £20k buying stock etc..
About 4 years ago I decided to go back to work (while still running the business) to try and sort out some of my debt.. I would manage to move about 10K of debt over a year, but then any number of things would come up and I would never be more then a few hundred pounds ahead.
About 3 years ago my partner loaned me 50K to sort out the majority of my debt. Over 18 months or so, I was working a full time job, running the business, and picking up some freelance work (I'm a web developer) and I managed to pay back 10K of the debt to my partner and about 10K of debt to my creditors (getting me down to around £70K).
Then in 2009/10 I was pregnant and had a baby... So I was/am working reduced hours and struggling to run my business, etc... and my debt creeped back up to £80K.
Over the past 6 months the debt has crippled me, my relationship has broken down (we are now separated) and I am getting incredibly stressed and often depressed. I am already to apply for bankruptcy, but I am now getting cold feet. My situation (as per my petition) is stated below.
I take home £1153 from my reduced hours full time job per month.
I manage to pick up about £1000 a year of freelance work - sporadic and not reliable.
I take no salary from the business but have made cash flow back and forth as expenses to help keep me from defaulting on any debts.
The business I opened and ran as a director is turning over about £8K operating profit but has £40K of business debt (from cash injections from myself and my partner). Plus a £5K overdraft and £3K credit card (both maxed) So it has no real value. I have now moved the directorship.
I owe my (ex)partner £40K.
I owe various other creditors £41K all unsecured.
My partner and I put a joint deposit on a flat 4 years ago (£7500 each), the value at the time was £152K. The flat next to ours sold last month for £80K. He also paid a further 20K towards the mortgage 2 years ago, and instead of paying his 'half' off, loaned me £40K at the same time. My name is not on the mortgage (couldn't get one) and it is not listed on the deeds as we could not afford or see the point of paying the fees to have this done.
I now live in the flat with my son while my partner lives at his mother's. He also lost his job 4 months ago and cannot contribute to our shared child expenses.. plus I owe him £40K so I don't really expect him to.
My current outgoings are about £1300 (without debt payments). This includes the interest only amount on the mortgage. As per the situation outlined above, I pay the interest as I feel it is my responsibility (i have made no equity payment since the deposit).
I have not had any missed or late payments until this month (as per advise from debt consultant). I managed to keep everyone happy by shifting debt between myself and my business, but I have not made any progress reducing it in almost 2 years.
I feel real stigma about declaring bankruptcy, and a failure... I did not want to do it and avoided it for 2 years (my partner was urging me to). Then about a month ago, the stress was getting to much so I took the step of getting in touch with a consultant. This person assured me it was easy and I was a perfect candidate. He just needed £2K from me, couldn't I borrow it??? That made me feel very uncomfortable that I was suppose to borrow another £2K to declare bankruptcy.
Any advice or any debt service I can use and trust? I live in North Wales... Thank you
Beth
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Viki.W
forum expert
United Kingdom
2211 Posts |
Posted - 21 March 2011 : 20:20:30
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Hi Beth,
I suggest, if you are having second thoughts, that you speak to an expert on here who can chat through your situation and discuss all of your options for you, then you can make a decision. Unfortunately, no-one can make that decision for you.
Advice should be free and it's really important that you understand all of your options.
Viki Warbrooke
Vincent Bond & Co
If you would like free advice on all options available and help with your bankruptcy petition please contact me at http://www.vincentbond.com/about_us_Viki_Warbrooke.asp
Please read my experience of debt via my blog at http://vikiw.blogs.iva.co.uk/ |
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maxpower
Starting Member
22 Posts |
Posted - 21 March 2011 : 20:29:25
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Thank you Viki. It was actually reading your bio and then going to the Vincent Bond site that got me thinking again.. Do you have the time to help/advise?
Beth |
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Viki.W
forum expert
United Kingdom
2211 Posts |
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maxpower
Starting Member
22 Posts |
Posted - 21 March 2011 : 21:40:05
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It seems that when I use the expert link, it just posts my question here anyway...
Is that the best thing to do? |
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Richard P
Senior Member
United Kingdom
1701 Posts |
Posted - 22 March 2011 : 15:07:54
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HI Max Power
i had panics and colly wobbles upto and including when the judge said it is all done
yes i can agree with all of the stigma points raised by you, the guilt, the I must pay back all of the money, like you a business failure caused my financial demise.
make certain company is correctly folded or thsi could cause you problems.
your situation and partners may be that going BR is best option for both of you, it will give you a frsh start and opportunity to focus on drving the business forward and not constantly looking backwards at creditors.
if you cant use the expert link to the left contact Vicki by her link in her message.
you will find vicki very nice, knowlegable and helpful, make contact and start planning to control your future.
Richard |
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RHB
Senior Member
1159 Posts |
Posted - 22 March 2011 : 15:27:22
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To reassure you somewhat, bankruptcy really is aimed at people like you who have tried & failed to establish a business to start over again.
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Richard P
Senior Member
United Kingdom
1701 Posts |
Posted - 22 March 2011 : 15:35:23
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| well said RHB |
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maxpower
Starting Member
22 Posts |
Posted - 22 March 2011 : 17:18:00
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Thank you RHB and thank you Richard. Sometimes all of the reading makes me think I have no business going bankrupt... my life is not nearly as hard as others.. I hvae a job, a home to live in etc....
I appreciate both of you supporting and advising me.
Beth |
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Having second thoughts BR - very long
