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darren.m
Junior Member
173 Posts |
 Posted - 22 March 2008 : 15:41:38
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Hi,
I have debts around £65,000. I am self employed. My income has reduced dramtically over the last year.
I have no disposable income and the only current guranteed income is approximately £700 child benefit/Tax Credits and £300 from wifes earnings.
I have private debt of £11500 Car (Secured)
£7300 Credit Card and £15704 (Loan unsecured)
Business £10393 Credit Card and £19590 Secured. Not inc Interest.
I can no longer afford the payments. I have not missed any payments but I am in a mess as to what to do. Any help would be appreciated. I have looked at websites etc but really struggling with where to go?
I have seen that an IVA may not be possible as most of my income is benefits? I don't like the idea of the debt managmeent plan so really struggling now.
Darren
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Edited by - darren.m on 22 March 2008 15:45:12 |
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Helpful Advice
Average Member
United Kingdom
646 Posts |
Posted - 22 March 2008 : 16:17:30
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Hi Darren,
Welcome to the forum,
You say the Business has a £19,590 loan secured.
What is this secured against?
I am assuming that from this you may own property?
if so what is it worth?
What is the outstanding mortgage?
With this further information I can get a better idea of your situation before I advice further
Kind Regards,
Brett England
View my Blogs at:
http://HelpfulAdvice.blogs.bankruptcyhelp.org.uk/
Bankruptcy Specialist
England,Jackman & Spacey
WebSite www.ejands.co.uk
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darren.m
Junior Member
173 Posts |
Posted - 22 March 2008 : 17:36:41
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Hi Brett,
Many thanks for your reply. I must say after loads of research this website has helped me tremendously with loads of people offering me help/guidance.
The debt for the business is not secured on a property. It is a Assett financed van and equipment. Iam renting currently so do not have a mortgage.
Darren |
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Helpful Advice
Average Member
United Kingdom
646 Posts |
Posted - 22 March 2008 : 17:45:16
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Hi Darren,
With the fact you clearly have little in the way of assetts and an overwhelming debt then Bankruptcy is probably your best option.
You must note the likely hood is the vehicles you have finance with would be lost to you.
The finance companies would claim there vehicles back and sell them at auction, so you must enter in your paperwork that there is likley to be a shorfall.
You do this by entering the finance as both a secured and unsecured debt on the 6.28 statement of affairs.
This way any shortfall will be included with your debts written off in your Bankruptcy
I hope this helps.
Kind Regards,
Brett England
Bankruptcy Specialist
England,Jackman & Spacey
WebSite www.ejands.co.uk
View my story at:
http://www.bankruptcyhelp.org.uk/forum/topic.asp?TOPIC_ID=594
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melanie_giles
Senior Member
1191 Posts |
Posted - 22 March 2008 : 20:22:35
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Before leaping into bankruptcy proceedings, have you thought how this might affect your business, and is it your intention to continue trading?
Bankruptcy is likely to result in the repossession of the items subject to finance agreements, which could enforce a cessation of trade - which in any case requires the express permission of your Trustee.
If you are not allowed to continue trading, what are your plans for finding replacement employment? |
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Reviva UK
Advanced Member
United Kingdom
2452 Posts |
Posted - 22 March 2008 : 20:35:25
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Hi darren
Just a brief note to itemise the next steps for you:
1. Minimise any outgoings that are not essential - therefore look at replacing the VW with car purchased from the equity. Thus saving X per month and still keeping the family mobile.
2. review the franchise and decide if that is the way forward.
3. Identify how you are going to generate income in the future ( job / self employed etc)
4. Once this has been established then you would be in a position to seriously consider a final debt solution- keeping the concerns about Br and its restrictions foremost.
While steps 1 - 4 are being developed then a careful "holding plan" can be used to ensure that the creditors know you are sorting somethong out and will give you the time to do so.
Take care and I hope you have a great weekend with the family.
Paul
Paul Johns
Assisted Bankruptcy Specialists
Reviva UK
www.revivauk.com |
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AlanO
Junior Member
United Kingdom
259 Posts |
Posted - 23 March 2008 : 09:35:15
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Hi Darren,
As the experts say now is the time to take stock review the position and importantly plan before you jump.
Most creditors will listen to a well thought out holding plan
All the best alan
www.debtdr.co.uk |
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JulianDonnelly
Junior Member
United Kingdom
325 Posts |
Posted - 24 March 2008 : 08:58:37
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Hi Darren,
Very good advice here from the forum experts.
Take a look at your expenditure and as Paul says see if you can cut this down by getting rid of expensive overheads like your vehicles and cutting back to more affordable vehicles.
Then look at your business and the continuation of trade. Bankruptcy will not necessarily stop your trading dependant on what it is that you do, however as Melanie has said you would need the permission of the OR to continue this trade.
What is your trade or business?
All the best
Julian Donnelly
Spokesperson for www.Bankruptcyhelp.org.uk |
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darren.m
Junior Member
173 Posts |
Posted - 24 March 2008 : 09:20:26
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Hi,
My tade is Carpet Cleaning and Flood Restoration. I am probably thinking of going back to work in the industry I was in before I did the Carpet Cleaning.
However this work was Stock Broking so I am then in a difficult position that Bankruptcy may well not be accepted.
The business over the last 6 to 8 months has had a very sharp decline in income/turnover due to several issues. So my concern is that continuing in the business may not be a financially viable proposition especially as I cannot gurantee alevel of income, especially if looking at an IVA.
I am in a position that I can probably look at selling the car as we did put a bit of money into that. As Paul has said that is what I am looking at.
I am getting alot of great advice on this and finding this site has certainly helped me.
Darren
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JulianDonnelly
Junior Member
United Kingdom
325 Posts |
Posted - 24 March 2008 : 10:11:21
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Hi Darren,
It sounds like your business is has not worked out as planned.
Bankruptcy would affect you working as a Stock Broker, therefore you have to think about your next moves.
you are making a good start by looking to sell the car as this will certainly lower your level of debt and expenditure.
If you want to go back into your previous line of work then you need to plan your actions carefully.
I am assuming as a stock broker you can earn a good income, in this event an IVA would be the best course of action to take.
I would make a suggestion that whilst you are looking to sell the vehicle or vehicles you should contact your other creditors and offer them nominal payments to make your expenditure more affordable maybe even go down the road of a debt management plan for the foreseeable future whilst you concentrate on your career and income.
At this point you could then see whether an IVA is viable.
Can I suggest you contact Melanie Giles and discuss your options with her, she will be able to advise you on the income levels required to sustain an IVA.
All the best
Julian Donnelly
Spokesperson for www.Bankruptcyhelp.org.uk |
Edited by - JulianDonnelly on 24 March 2008 10:20:47 |
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AlanO
Junior Member
United Kingdom
259 Posts |
Posted - 24 March 2008 : 10:58:18
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Hi Darren,
I agree with Julian that you should contact an expert to review your options and plan actions that are best for you.
Best if this can be face to face and usually there will be no charge for this.
All the best alan
www.debtdr.co.uk |
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melanie_giles
Senior Member
1191 Posts |
Posted - 24 March 2008 : 11:35:13
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Yes - Julian is correct that stockbroking will not be an option for you as an undischarged bankrupt, but you will be permitted to put forward an IVA. I have a few stockbroking clients, and have had to provide letters to their employers confirming that payments are being serviced in line with the requirements of the IVA, so you will probably be required to declare your financial position on your application form.
Have you thought about diversifying your business into the commercial sector - ie office and factory cleaning, or even providing a fitting service. And how difficult do you think it will be for you to get back into the City? |
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darren.m
Junior Member
173 Posts |
Posted - 24 March 2008 : 14:55:46
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Hiya,
I have tried numerous different avenues, all of which have not worked.
That is what has got us into this mess.
Darren |
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Helpful Advice
Average Member
United Kingdom
646 Posts |
Posted - 24 March 2008 : 21:42:46
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Darren,
It would appear you have answered your own question and appear to be flogging the proverbial dead horse.
My question would be your reasons for leaving your previous line of work as a stock broker?
Although financially you may be better off in this line of work if it's not something you enjoy then you need to consider this also.
However as the experts have said if you do go back to this line of work then your position would be effected by your declaring yourself Bankrupt therefore the IVA route would be a more suited route in these events
Kind Regards,
Brett England
Bankruptcy Specialist
England,Jackman & Spacey
WebSite www.ejands.co.uk
View my story at:
http://www.bankruptcyhelp.org.uk/forum/topic.asp?TOPIC_ID=594
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Topic |
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I am in a mess as to what to do
