I am sole trader considering bankruptcy because of VAT arrears problems. I have no UK assets, jointly own a house in Spain with my wife. Value now is probably no more than the outstanding mortgage. My question is whether we are in danger of losing house if I declare UK bankruptcy.
as a sole trader you probably need to review your income and expenditure here in the UK, tools of the trade, what type of work you do etc.
additionally if the spanish property is a holiday home it is likely that the OR would insist that your income go towards an income payment agreement rather that meet the mortgage abroad.
The house is still an asset so needs to be declared. if it is in negative or zero equity then your wife could buy back the interest from the OR.
Total debts including unsecured overdraft £ 90,000. House is sole residence of family including 2 young children.Valuation is difficult as there is no property market at moment
Hi so debts are significant and Br is certainly an option but you need to review the value of your assets, tools of trade etc.
we are curently dealing with over 30 Spanish properties and they are as you say difficult to value but in Br it needs to be done otherwise the house is at risk.
you may elect to have a longer conversation with an expert to go over all the aspects, business, income expenditure and house
I am sole trader considering bankruptcy
Posted - 06 August 2009 : 15:55:32
