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jerm
Starting Member
9 Posts |
 Posted - 05 January 2009 : 18:40:16
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Hi my name is Jeremy and I am at a point I need answers to my debt problems. Well here goes:
I am self-employed and fit Kitchens and Bathrooms. It has been quite successful (until now!). Things started getting tough about 2 years ago when I employed someone and it started to drain the finances so I had to let him go, then my wife's business started to suffer so I helped out as much as I could (financially), then we got married (stupidly expensive wedding, all my fault, but wouldn’t change that, lovely day and fond memories !!!). To top all that my wife then had to declare herself bankrupt about 6 months ago so I have had most of the financial burden, with 3 kids and a rent of £850 pm along with the other bills. Then just to kick me whilst I am on my knees, I subcontracted to MFI where I got most of my work from and we all nowhere they have gone now. Looking to fill that gap is not looking good, word of mouth only goes so far and fast and advertising is sooo expensive when you have little funds.
So here I am, I have £44,000 debt and cannot chip away at that and keep the home as well. Work is very slow and I need to go on benefits here and there when no work. I have 11 creditors chasing me and nowhere to turn. I have been advised that an IVA would be no good as I cannot commit to a regular payment due to the sporadic work. I am not worried about going bankrupt as my credit history is rubbish, however although we are renting, I am trying to buy this house and worried that it would affect that.
WHAT IS THE ANSWER, PLEASE HELP?
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debtrider
Junior Member
494 Posts |
Posted - 05 January 2009 : 18:59:12
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Hi Jerm
It all sounds very complicated but at the end of the day it seems though you do not have enough income to pay your debts. You have experience of bankruptcy already as you wife went bankrupt, so you have a good idea of what to expect. Did you think of also going bankrupt at the same time as your wife 6 months ago?, that may have been the time to do it.
You can still keep your business if you go bankrupt and a modest vehicle at around £2000 value and tools of the trade. You rent your property so the OR cannot take that, so what else have you to lose?.
It would be impossible to get a mortgage if you went bankrupt, and when discharged after 12 months it would still be very difficult.
Talk with an expert like I did and they will offer more advice.
All the best
Debtrider
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pix1
Average Member
689 Posts |
Posted - 05 January 2009 : 19:19:59
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Hello,
It sounds like this might not be the best time to be buying the house you are renting, anyway, as prices are nosediving. You might end up owning a property going into negative equity AND still having all those debts around your head. As your wife is already bankrupt it is highly likely that there are financial associations somewhere on your credit file and so you will be seen as husband of a bankrupt. This could be a great time to clear the decks and take the plunge like your wife. In 5 or 6 years you could be buying a property jointly with the missus and having no debt. My wife and I have been through it, though, I went BR a few months before her. i am discharged and she may be soon. Got rid of £70 k of debt and a property with a potential £100k of negative equity (not sold yet!). |
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jerm
Starting Member
9 Posts |
Posted - 05 January 2009 : 20:36:25
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Thanks for your comments they are going to be very usefull in my decisions within the next week or so. I do have a works van which my father got a loan for, which is a year away from being paid. Would the reciever let me keep the van to trade and continue paying him ?
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Reviva UK
Advanced Member
United Kingdom
2452 Posts |
Posted - 05 January 2009 : 20:41:20
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Hi
Did your father finance the Van or did he borrow money, give it to you and you purchased the van?
If your father purchased the van - irrespective of who's name is on the log book - then the van is his and it is safe.
Provided that the finance is modest then if you need it to work then the OR would probably allow that monthly expense so that you can continue to earn a living.
Paul Johns
Assisted Bankruptcy Specialists
Reviva UK
Real People ..... Real Debt Solutions
www.revivauk.com |
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jerm
Starting Member
9 Posts |
Posted - 05 January 2009 : 20:56:29
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He took a personal loan in his name and gave me the money to buy it. I have paid him through a standing order for 4 yrs so would that be proof enough that he brought it ?
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Reviva UK
Advanced Member
United Kingdom
2452 Posts |
Posted - 05 January 2009 : 21:05:12
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Doesn't quite work like that.
The way you have explained it looks more like you have borrowed £X from your dad and have bought a van with it.
This would mean that your father is a creditor and whatever is owing would go into the Br, and the van would be classed as your asset because you purchased it with money borrowed from your father.
What is the van worth now? if it is less than £2k it wouldn't matter either way but the OR would not allow the continued payments to your father for the loan because this would be classed as preferential treatment
Paul Johns
Assisted Bankruptcy Specialists
Reviva UK
Real People ..... Real Debt Solutions
www.revivauk.com |
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jerm
Starting Member
9 Posts |
Posted - 05 January 2009 : 21:15:51
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Thankyou paul you are very helpfull !
What if I signed the logbook to my father, then went bankrupt next week ?
P.s Has anyone ever told you, you look like Ronnie O'Sullivan in that picture, not quite the earnings though, hey ? ha ha
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Needafriend
Junior Member
United Kingdom
344 Posts |
Posted - 05 January 2009 : 21:18:17
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Hi Jerm
If you sign the log book now it would mean that the OR when doing there checks would find out anyhow and it wont look to good on you almost like your hiding assets from them.
They do checks at the DVLA and also you have to write down vehicles/property in the last 2 years i think it is and also do you have use of a vehicle which you do.
Jo
x
22 Weeks down
30 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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Reviva UK
Advanced Member
United Kingdom
2452 Posts |
Posted - 05 January 2009 : 21:24:01
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Hi
signing the log book now is a guarantee of an OR nightmare.
What type of van, how old and what is it worth, we may be worrying without reason.
Paul Johns
Assisted Bankruptcy Specialists
Reviva UK
Real People ..... Real Debt Solutions
www.revivauk.com |
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jerm
Starting Member
9 Posts |
Posted - 05 January 2009 : 21:28:21
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Van is a Renault Trafic SWB 53 plate, prob worth around £3500.
I just want to find a way of not leaving my dad with the loan. Would it be best to put him down as a creditor and still pay him discreatly ???
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Needafriend
Junior Member
United Kingdom
344 Posts |
Posted - 05 January 2009 : 21:32:55
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Jerm
What is the payment you are paying your dad per month as i cant see that you have listed it in your postings, thats if you dont mind me asking?
Jo
x
22 Weeks down
30 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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jerm
Starting Member
9 Posts |
Posted - 05 January 2009 : 21:34:42
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I pay £254 pm, standing order to his account(loan account)
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Needafriend
Junior Member
United Kingdom
344 Posts |
Posted - 05 January 2009 : 21:37:22
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Jerm
I can see where your coming from. I understand that when its family its even harder as you dont want them to lose out.
There must be a way round this.
Jo
x
22 Weeks down
30 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! |
Edited by - Needafriend on 05 January 2009 21:37:46 |
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jerm
Starting Member
9 Posts |
Posted - 05 January 2009 : 21:50:09
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I do like the idea of paying him discreately. I want to be honest with the OR as dont want any problems. The wife was totally upfront with them and has had no problems and has had a letter a month ago saying they are considering discharging her but dont know when. She went BR in July 08.
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Reviva UK
Advanced Member
United Kingdom
2452 Posts |
Posted - 05 January 2009 : 21:54:10
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The issue here is that the van is worth £3500.
I can't see the OR allowing you to retain a vehicle of that value unless you found the difference between £2k and £3.5k
Paul Johns
Assisted Bankruptcy Specialists
Reviva UK
Real People ..... Real Debt Solutions
www.revivauk.com |
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I need answers to my debt problems
