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GetBackUpAgain
Starting Member
8 Posts |
 Posted - 06 January 2012 : 12:36:25
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Hello folks,
Hope someone can help a little...
I'm a Director of a Ltd company my wife and I set up (my wife is the other Director) and I'm thinking of declaring bankruptcy (not my wife - she has no debts in her name).
My *personal* debts are:
32k credit cards
3k bank overdrafts
Up until now i've tried to keep on top of things, hoping for the business to finally take off and pay everything back via a decent salary. That little dream hasn't happened. And i'm effectively insolvent, as the company is still not capable of paying anything more than a nominal salary, while I'm still borrowing to try and make ends meet.
I'm resigning as a director of the Ltd company and passing all shares (which have zero value) to my wife, as she believes she can turn the business around without me in the way (and she's probably right).
My wife has no debts at all. And I don't want anything I choose to do to affect her - or my son - adversely (or the Ltd company) due to my personal failings, should I choose to declare bankruptcy.
Note: the reason I am looking at bankruptcy is on the back of research into its pros and cons versus the IVA alternative...I have no actual assets to lose beyond a 10-year old car and some dignity.
So what I need to know, if I declare myself BR, is:
Is there any effect on the Ltd company (or my wife) based on having recently been a Director? (There is no company overdraft, loan, or anything like that - just very minimal funds in the company bank account)
Would I be allowed to be employed as, say, a programmer - or at least work voluntarily as one - in order to help my wife initially on the technical side with taking over the company as sole director? (if she wanted my help). I understand sales is out, but where is the line drawn when in this situation? I don't want to tread on toes and do the wrong thing.
What proof do I need to provide of being capable of solvency *after* bankruptcy?
I'm *very*, very fortunate to be helped by family and friends in terms of living expenses until feet get back on the ground. So certain expenses (like rent) will initially be traded against help around the house etc. What must I do to ensure bankruptcy wouldn't be rejected?
What are acceptable ways to fund the bankruptcy fee? Can any part of it be funded through existing credit taken before making the final decision? (I don't have much available during the next few weeks beyond tax credits).
Hope some of that makes sense. And huge thanks to anyone who's taken the time to read this far and consider responding. It's really appreciated.
Regards,
Ajay
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Steve Thatcher
New Member
United Kingdom
70 Posts |
Posted - 06 January 2012 : 12:55:37
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Hi Ajay, resigning as a director and having been involved in the business shoudl have no effect on your wife
Point 2, you can be involved in the business, but not the management or control. If you are just an employee, that would be fine.
You need not provide any evidence of solvency after the bankruptcy. If you earn a wage that will need to be disclosed to the OR, he will set it against your expenses and see if there is any disposable income.
With your level of debt your bankruptcy will not be rejected as you are entitled to the order.
I would caution you not to settle your fees via more credit, the OR will not take kindly to this. Can you save your fees (£700) from not making payments to other creditors, or by seeking help from your wife.
Good luck
Steve
Steve Thatcher
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GetBackUpAgain
Starting Member
8 Posts |
Posted - 06 January 2012 : 17:25:31
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Steve,
BIG thanks for your response.
Is it best to not use any available credit for anything else between now and making my final decision? (e.g from overdraft or credit cards).
If so, should I start to default on payments to creditors in order to enable basic living until then?
By the way Steve - your site is an excellent resource. If I can find more money, I may be interested in your BR service (though that's a very slim chance at the moment!).
Thanks again,
Ajay |
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Niobe
Administrator
United Kingdom
4590 Posts |
Posted - 06 January 2012 : 17:58:27
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Now you have recognised that you are insolvent then you should not use any credit at all.
Stop paying your creditors in order to save up the money for the fees.
You don't have to pay anyone to help you go bankrupt as you can fill the forms in yourself.
Otherwise, if you need help there are plenty of experts on here you can also ask - just click on the link on the left hand side of the page and speak to a couple of them.
Follow through
Make your dreams come true
Don't give up the fight
You will be alright
'Cause there's no one like you in the universe
Jan
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Steve Thatcher
New Member
United Kingdom
70 Posts |
Posted - 09 January 2012 : 10:28:40
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Never use credit once you have come to the conclusion that you are bankrupt.
You must always make sure that you can feed cloth and heat yourself before you pay creditors
Steve Thatcher
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Company director, personal bankruptcy questions
