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iv63
Starting Member
3 Posts |
 Posted - 20 October 2010 : 09:48:01
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Hi,
I'm thinking going bankrupt and I have a few questions.
I'm unemployed since 1. August and on state benefits ( JSA, Housing ) but, before that I used to be a self-employed for 10 years ( sole trader / free lance kameraman ).
1. Will I have face to face meeting with Oficial Receiver and for how long from the past he may ask me to provide my business book records and bank statements ??
2. I never owed any properties and cars and do I have to list all small items I sold during last 5 years ( ex. computer, kamcorder, etc ) and what about if I don't remember when and for how much I sold them ( I'm talking about small items which doesn't worth thousands of pounds ) ??
3. Will OR let me to keep my cameras, computers and few other bits I used for my work, as I'm still looking for new work and will use it again when / if I find a new job ??
4. If I work part-time during Bankruptcy and earn 150.00 per week, this money will cover my JSA ( 65.00 ) which will stop and the rest will be taken by Housing, so my Housing benifits will be a bit less. Will OR take something, despite I'll be still on Housing benifits and my income doesn't cover all my rent, which is 975.00 per month, one bedroom flat, Hammersmith, London.
Many thanks
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Bigal4787
forum expert
United Kingdom
641 Posts |
Posted - 20 October 2010 : 10:25:20
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Hi IV63,
in answer to your questions:
1.Having previously been a sole trader, you will have to be interviewed face to face, which isn't the unpleasant experience some would have you believe, I should know, I was an examiner until this July! As for your books and records, you should try and deliver up as much as you can. In addition, are any of your liabilities to HMRC?
2. The only things the OR would be interested in, would be if you had sold any property(houses etc), or cashed in insurance policies. But in the case of insurance policies etc, that can be explained by you having to do so, to cover day to day living expenses, or as some people do in your situation, to keep trading,in the hope that business will pick up. You can say you sold things like camcorders etc, but for the same reasons.
3. Regarding the equipment you already have, and if you do need it to secure employment in the future, then it can be exempt from the proceedings, as long as you can demonstrate to the OR that it would be NECCESSARY to secure future employment.
4. If you're currently on benefits these are not taken into account when assessing an IPA(income payments agreement), and judging by the figures you've given you still won't if you get a part time job paying £150 per week. The thing to remember, is that if you haven't entered into an IPA by the time you are discharged from bankruptcy(12 months from the date of the order), then after that it won't matter what your earnings are.
Big Al |
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iv63
Starting Member
3 Posts |
Posted - 21 October 2010 : 01:45:33
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Hi Big Al,
Thank you for your answers.
I'll go to Royal Court Of Justice. Do they do face to face interview with self-employed people ?
No, I'm NOT scared regarding face to face interview at all, I'm not criminal and I have nothing to hide. To me it's even better to explain many things in front of examiner / OR so, he/she can see what kind of personality I'm and how confident I'm with my answers. I think that interview can be in my favour and OTHER PEOPLE FROM THIS FANTASTIC FORUM SHOULDN'T BE SCARED TOO.
Regarding your question about HMRC, yes, I owe them 480.00 tax payment for the year 2008 / 09 which will be included in BO, and for the year 2009 / 10 for which I still haven't sent assesment and I hope it can be includid in BO.
1. Do I need at all to fill self assement for the tax year 2009 / 10 if I Bunkrupt now ( I normaly do it every January )and will that automatically go under BO anyway?
2. Will OR be interested or chalenge to recover something if I had sold a few small items in last 5 years ( computer, camcorder ) as this was fairly modest amount ( 200-300 pounds deals, if that ) comparing to houses and other properties ?
3. Last month I used overdraft on my current account ( 500.00 ) to pay some utiliti bills, all was set much earlier as direct debits, as I didn't have cash, will OR consider this as a froud prior my BO, will this cause any problem to my BO case in any way ? ( I was unemployed at that time and didn't have cash and I had to pay all bills )
Many thanks
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Bigal4787
forum expert
United Kingdom
641 Posts |
Posted - 21 October 2010 : 14:48:11
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Hi,
If you're going through the High courts of justice in London, your OR's office is at Bloomsbury street. Having been a sole trader you will be required to attend for a face to face interview, so if you can, make sure you can provide any books,records and accounts you have, going back as far as possible.
Regarding the £480 tax you owe that can be claimed in bankruptcy, so you should put that on your SOA. £480 will not worry the OR at all, I dealt with sole traders who owed anything up to £1 million.
If you do intend to continue trading, as long as you are providing a service, hold no inventory, and don't have leased premises, you should be okay, but overall what you are allowed to do will be up to the examiner/OR that deals with your case. As previously stated, like a plumber or electrician, as long as you can demonstrate to the OR that your equipment is neccessary, then the OR can exempt it.
1.You will still have to complete your self assessment,despite bankruptcy,as previously explained, any liabilities from previous tax years can be claimed in bankruptcy. But if you incur any penalties, surcharges etc after bankruptcy, then you would still be liable.
2. If you sold small items for £200 or £300 the OR won't seek to recover that money, as once you are in financial difficulties, people do sell things to try and make ends meet.
3. If you had to use your overdraft, again that will be claimed in bankruptcy, but the account will be closed. In which case you should open an account with the Co operative bank(cashminder account), or a basic one with Barclays as both are bankrupt friendly. Obviously they don't have overdrafts, but they do provide banking facilities.
Big Al |
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iv63
Starting Member
3 Posts |
Posted - 22 October 2010 : 04:47:27
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Hi,
Only a few more questions. Sorry, they may sound a bit strange but, in real life we will face them and then we can be confused or make some mistakes.
1. Will I be allowed to travel abroad for 1-2 weeks break during BO to visit my parents if and when needed ?
2. Will I have to justify the money I spend for ticket to OR ( money could be a present from somebody ( in my case - parents or my girlfriend ) to pay my ticket as I'm at the moment unemployed ?
3. Is it better for me to buy the ticket before BO process or somebody else should buy ( pay ) instead of me if I don't have my own money so, I can be clean in front of OR ?
Many thanks Big Al,
PS. Your answers has been fantastic and thank you for your time. I wish I could send you to OR instead of me to act on my behalf ( just a joke ) ! All the experts from this forum should be awerded with a gold medal !!
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Thinking about bankruptcy have a few questions
