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Matt W
Starting Member
United Kingdom
11 Posts |
 Posted - 06 December 2008 : 18:54:41
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I'm considering going bankrupt and am looking for some advice from anyone that knows professionally and also personally from experience. I have £46K worth of debt accumulated over 8 years. I am a freelance film maker. Some of the money was used to cover my mortgage when my income was low. I have also invested in my career, (making films) in the hope of advancing it and have spent a considerable amount of the money I received from selling my flat (£16K) in trying to advance film projects and going backwards and forward to LA where most of my business is. I am nervous about going bankrupt, mainly because I fear my financial details of past 3 years being heavily scrutenised. I don't think I've done anything fraudulent but am just feeling paranoid. I receive a small income as music writer (£4K a year approx) but although I have been paying my creditors between £1 and £30 a month, have invested any money that I received as income or as a loan from a film distributor (£52K) in trying to further my career in the hope of making enough money to settle my creditors. However, I am now penniless, on Job seekers allowance and cannot realistically keep these payments going. The debt to the film distributor will be settle by a quitclaim. They will gain full ownership of a project I have tried to set up with their investment. Are my fears reasonable or am simply in the same position as most people. Will the court want to see bank statements going back 2 years. How closely will they examine everything that has gone through my accounts?
Thanks very much for any advice. Also what are the disadvantages of going bankrupt. I don't own a car or flat. These have all been sold to finance my projects. I pay £80 a month for storage where there are old sofas, books and papers. Will the court want to know more about this and want me sell them? (Not sure who'd be interested in buying them) Thanks very much. Matt |
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Snow Dog
Junior Member
112 Posts |
Posted - 06 December 2008 : 19:38:48
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Hi Matt
Well me and Mr Snow Dog went bankrupt on 12 November, and we visited the OR a few days ago. We also had a business and were required to take all our accounts for the years we were in business, this included all the bank statements. Do you have prepared yearly accounts from an accountant for your time in business? as the OR was definately interested in seeing these. As for personal account bank statements he only wanted to see them for the previous 12 months. I have to say that I was terrified of going to see the OR, but he turned out to be very nice, and basically what he is trying to establish is if you have any assets which will go towards paying some of your debts.
When you are in Bankruptcy you are allowed enough money out of your wages for normal day to day living expenses ie rent, food etc. I can highly recommend Paul Johns who advises on this forum, his firm is Reviva UK, and to be honest I am so glad we had Paul there at the court when we went bankrupt and at the OR interview. His knowledge is fantastic.
I am not to sure how closely they look at your accounts, but after our interview and having looked through the prepared accounts from the accountant the OR said he would be recommending for us to be dischared early from the BR.
From a personal point of view, the last few months have been hell for us. Our marriage suffered, we lost our business and our home is getting re-possesed, BUT, we are now stress free and happy. I have to say going BR was probably one of the best things I ever did.
I hope this is of some help Matt, but if not, as I say, give Paul a ring, he is excellent.
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Matt W
Starting Member
United Kingdom
11 Posts |
Posted - 06 December 2008 : 19:52:41
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| Thanks very much. That's useful to know about getting the yearly accounts together. I have been self employed since 1991 and don't have a business as such, I am just a sole trader. I wonder on that basis how many years worth of accounts I would have to show. That in itself is a bit difficult because I have been moving a lot and have been very bad at keeping my accounts in one place. Hopefully my accountant might have records stretching. It useful to understand that what they're looking for is evidence really that I have something that I'm not offering. |
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Matt W
Starting Member
United Kingdom
11 Posts |
Posted - 06 December 2008 : 19:55:44
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| One other question. I visited the CAB who advised that I go bankrupt. I can't have an IVA because I am self-employed and currently have no job. I asked the CAB about representation in court and they advised against. They said if they went in, or I had a solicitor it encouraged the OR to think that I was hiding something and they might get their lawyers in as well. He said if you had nothing to hide, just go in by yourself and play it low key. Any thoughts? |
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Snow Dog
Junior Member
112 Posts |
Posted - 06 December 2008 : 20:04:21
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| I am not sure how far back you have to go with your accounts, but we had two businesses, (one which I actually closed down 18 months ago) and he still wanted to see all the accounts for that business, although I only had it for 3 years,(as a sole trader), the other business we had for 2 years (partnership). I am pretty sure your accountant will still have records too. I have to say though that even though he looked at the accounts for the business I closed 18 months ago, he was mostly interested in the partnership one..the recent one. He was really just trying to get an idea in his head about why things had gone wrong, and also I do believe they are just trying to see that you haven't stashed huge amounts of money away in a Swiss bank account etc. I put a lot of our own personal money into my first business and the OR accepted that that is one of the reasons why we started to have trouble. As long as your accountant has done accurate records of your business dealings (which he will have done) then I don't think you should have anything to worry about. We went BR for way more debts than you have Matt, and we are looking at early discharge, so I wouldn't worry too much. Of course this is coming from the chief worrier of England. Its easy for me now that I have had the court and OR meetings to sit back and say don't worry..this time last week I was in bits! But seriously, if you are worried seek out some advice. |
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Snow Dog
Junior Member
112 Posts |
Posted - 06 December 2008 : 20:08:26
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| In reply to your second question..well, all I can say that I am so glad we had a professional advisor. He helped us close down the business, he talked to my hubbys creditors about keeping the taxi, he dealt with our shop landlord, he provided moral support etc etc. I never for one moment got the impression that the OR thought that by having the advisor with us that we were up to something.!!! And also we were self-emloyed, but initially looked at an IVA. Its not for me to criticise the CAB, but as I said, even with an advisor sat with us at the OR interview, we are still looking at early discharge from the BR, so I don't think having an advisor certainly did us any harm! |
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Matt W
Starting Member
United Kingdom
11 Posts |
Posted - 06 December 2008 : 20:18:34
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| Thanks very much. Doing this I think naturally makes anyone nervous so it's great having this forum to realise that I am just one of many. And I guess considering the state of the economy the OR must be seeing a big rise in people being forced to take that option. I don't know if you or anyone would know this but I seemed to recollect (I might wrong here) that when you go to the States and fill out the green declaration form, one of the questions they ask is if you've been bankrupt. I wonder if anyone knows more about this or if there were any other things that you hadn't really considered before taking this step and maybe wished you'd known more about or considered? |
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Snow Dog
Junior Member
112 Posts |
Posted - 06 December 2008 : 20:30:20
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Well, strangely enough before we decided to go BR we were thinking about eventually emmigrating to Canada, but I am pretty sure that one of their policies is not to take on anyone who has been BR. I am not sure if the States have the same policy, but I guess you are just talking about working there as supposed to emigrating? I have been to the States a few times, but I don't remember if that question comes up on the green declaration card. Maybe it might be an idea to call the US Consulate in the UK..if you find out, let me know for future reference please.
I have to say, that from my point of view there wasn't anything that cropped up which I hadn't considered. I think for me the main thing I was initially worried about, was coming face to face with my shop landlord as we still had 8 months left on our lease when we closed down the shop. But he was told that he couldn't hassle us by the debt advisor. Ooh, the other thing is I was not prepared for all the sharks that come out of the woodwork offering you advice after the BR..we got a letter the day after the BR. They say things like they will get you discharged etc etc, basically they are after a quick buck. They must hover over the Insolvency Register every day to see who has just become BR. But other than that, I think we pretty much knew what was going to happen. I have to say though, I did learn a lot from this site, and I am really glad I found it. So thanks everyone for your help. |
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Matt W
Starting Member
United Kingdom
11 Posts |
Posted - 06 December 2008 : 20:55:54
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| Thanks very much. That is useful to know about Canada and you're right, I need to get in touch with the consulate find out more about the States. I would like to work there in the future and want to be sure this doesn't become prejudicial. I will let you know what I find out. |
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Trolly-Dolly
Average Member
591 Posts |
Posted - 06 December 2008 : 22:45:38
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Hi Matt,
Welcome!
I am a long-haul air hostess who goes to the States all the time. For the past 15 years I dont recall the green visa waiver form changing (I think that is what you mean), and I honestly dont recall seeing anything about bankruptcy on it. On the reverse there are a number of questions mainly asking if you are a drug smuggler, illegal trader, prositiute or terrorist. The scariest one for me is 'have you been on a farm?'
Well as I am crew I have both a working visa (which requires an interview at the embassey as you know) and a viditors visa; I am also a bankrupt and this does not affect me in anyway.
I am 99% certain that it will not affect you either.
Oh and by the way......Francis Ford Coppolla went BR trying to further his film career!
You can read my blog here;
http://drowningmummy.blogs.iva.co.uk/ |
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Trolly-Dolly
Average Member
591 Posts |
Posted - 06 December 2008 : 22:48:11
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Forgot to add that I am going to the states next week, so will check it out for you if you can wait til then.
You can read my blog here;
http://drowningmummy.blogs.iva.co.uk/ |
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Matt W
Starting Member
United Kingdom
11 Posts |
Posted - 07 December 2008 : 08:59:46
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| Hi Trolly-Dolly, that's really great to hear that. I'm sure if you've had no problem I must somehow have imagined that as an issue. I would like to ask you the same question that I asked before. Was there anything that you didn't expect (negative, positive or unusual) that came out of your bankruptcy? Anything you hadn't thought about or nobody had told you about. Also thanks for the Coppolla point. I think probably half the film industry's been bankrupt at some point. |
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Trolly-Dolly
Average Member
591 Posts |
Posted - 07 December 2008 : 12:57:16
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I thought there were going to be some surprises in store for me, but nearly 4 months in and it has only been positive.
Sure, the not knowing is a bit scary and I do have a tendancy to wind myself up!
But in a nutshell, I have been classed as a type 0 debtor, which means I wont have an OR interview, but instead will have the examiner deal with my estate.
I have kept everything: Home, car, bank account, mobile phone contract, Sky contract, phone & broadband etc. The only change to my life is that I dont lie awake at night wondering how I can be debt free. I havent even gone onto a nil tax code yet, and still have no IPA in place (but I dont have any disposable income).
It is hard adapting without credit, but you get used to it. I learn lessons all the time. Lesson learnt this week is: If you have no savings/contingency money/credit then it is best to take out cover for your boiler/heating/plumbing electricals and pay this monthly. My hot water has gone and it will cost me about £250 to have fixed! I dont have that, so me and my babies will be having old fashioned kettle baths until after Xmas!
I cant wait until I am discharged though, as I want to start making some more money from home, but darned if I'll do this whilst BR!
All in all, a positive experience for me. So glad I did this rather than an IVA or DMP. The only stressful bit was the run up to BR, fear of the unknown and all that.
You can read my blog here;
http://drowningmummy.blogs.iva.co.uk/ |
Edited by - Trolly-Dolly on 07 December 2008 12:58:01 |
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Needafriend
Junior Member
United Kingdom
344 Posts |
Posted - 07 December 2008 : 13:36:02
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Hey TD
I have boiler ins, its costs me £15 per month and i am damn glad that i have it as mine went wrong twice last year.
I second that for not relying on credit, it actually feels quite good, although early days its kinda hard too as i always had the Overdraft to rely on, but now i have had to plan things so differently.
I too am so glad that i did it, i feel so free if you like, the weights have been lifted and i can be a human again.
I do miss the post in a way, but i dont think the postman is too bothered, it will save his back now. ;-)
LOL
Jo
x
18 Weeks down 
34 to go 
For more info on how i have come through bankruptcy and for links to help, you can read my blog here called:
Needafriend's Info on Bankruptcy :-)
http://debtfreejo.blogs.bankruptcyhelp.org.uk/
Needafriend says: Live life to the full, take life by the horns and live a little, otherwise life would be so boring!
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Matt W
Starting Member
United Kingdom
11 Posts |
Posted - 07 December 2008 : 14:39:21
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Hey guys, thanks for both of these responses. It's good to hear that. Like you said it's more fear of what might happen rather than anything else that is concerning me. The thought that they might want to look heavily in to my accounts, not that I have anything to hide but probably more that I have been moving around and have not been very good at hanging on to records. Having lost the flat and the car and living with relatives, I guess I have nothing more to lose and I guess I should realise that going BR is designed for people like me.
One further question. If I do have any income in the next three to nine months it is likely to come from freelance individual jobs here and there, consultancy fees. I might get a payment from anything from £400 to £1000 once every one or two months.(or I might get nothing and stay on JSA) Do you know how I would need to handle earnings like this and what they would expect me to hand over? Thanks |
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dazed and confused
Junior Member
United Kingdom
475 Posts |
Posted - 07 December 2008 : 16:13:57
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Sorry to jump in on this thread - I have been looking into migration to Canada and I was told by an Immigration Expert that BR in the UK would have no effect, but they may have been wrong so if anyone else knows more about this I would be interested to know!
I guess it depends on what kind of Visa you would be going there on - I am going for a year in January on a 1 year 'Working Holiday' Visa, and I was also looking into a Sponsorship Visa (my partner is Canadian).
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I'm considering going bankrupt
