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sb4
Starting Member
United Kingdom
5 Posts |
 Posted - 11 November 2008 : 20:49:07
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Hi, looking for a bit of advice - a whole new experience for me! My wife and I started a limited company business over 2 years ago which as creditors we have put a petition to the court for winding up the business. The business has not performed well at all in 2008 in part due to the economic circumtances it is not sustainable. I have incurred significant debt (personal loans and credit cards) keeping this business afloat, which are all in my name, so my wife's personal debt is just her share of the mortgage. However in order to secure the premises/business loan/leases etc. we had to give joint and several guarantees. How do these work? Do we just sit back and wait and see if they come after us for these? I am personally planning on going bankrupt as there is a massive level of personal debt that is not possible to clear in an IVA even making only 25% payments. My wife does not want to go bankrupt as she is starting a new business and going bankrupt will not help this. She has no debts other than mortgage and business related personal guarantees. It would be great if they just chased me for these and she could get on and start her new business - not sure how realistic this is. Also we have 2 personal current accounts in joint names - if I go bankrupt do they just chase her for the overdraft to be paid back in full? Presumably as they are joint accounts they will pursue her for the full overdrawn amount - or is it only half?
It could take a month or more for the court to wind up the company. Should I wait until the company is wound up before going bankrupt or is it better to get on with the bankruptcy. I am concerned that in a month to 6 weeks time when the business is wound up the heat from personal creditors will have become a lot worse?
Would appreciate anyones input.
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John
New Member
United Kingdom
73 Posts |
Posted - 12 November 2008 : 01:52:26
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Hi
joint and several DPG's mean that if you wind up the company you are both personally liable for the business debts. If you then declare bankruptcy your personal debt will be included with the exception of the joint account overdrafts for which your wife will then become solely liable, and for the full amount (not just her half as it were).
Likewise all of the company debts will become your wife's sole liability and yes all of the business creditors will pursue your wife for payment.
If there is equity in your property there are a number of routes your creditors could go down to recover their money.
www.Bankruptcyhelp.org.uk
0800 078 9367 |
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sb4
Starting Member
United Kingdom
5 Posts |
Posted - 12 November 2008 : 10:15:48
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Hi John,
Thanks for this. I was wondering in terms of timings did it make any difference. Do I need to wait for the company to be wound up before I can declare myself bankrupt? Or should I just go ahead asap. There is equity in the house, which we have accepted we will lose. Although my OH could buy my share it probably is not worth it. We have 2 young children so we are hoping to be in the house for a year. We are hoping our mortgage ppi claim will be approved so that should cover the mortgage whilst out of work.
Another query, it almost makes sense not to earn too much money during bankruptcy as OR takes 60% of spare disposable income for 3 years. Presumably it is better to wait until discharged before attempting to restart career again and earn more money? |
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sb4
Starting Member
United Kingdom
5 Posts |
Posted - 12 November 2008 : 16:58:38
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quote:
Originally posted by John
Hi
If there is equity in your property there are a number of routes your creditors could go down to recover their money.
www.Bankruptcyhelp.org.uk
0800 078 9367
Hi John
Yes there is equity, although not enough for all the secured creditors and personal guarantees. You said there are a number of routes they could go down to recover their money, what are these routes?
Thanks |
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John
New Member
United Kingdom
73 Posts |
Posted - 12 November 2008 : 17:17:29
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Hi
Yes once you are discharged you can earn as much as you like without contributing to an IPA providing that you do not get an IPA before discharge.
It looks to me with the DPG's and the joint mortgage
your wife may need to declare BR too.
However, if the equity in the property is negligible it might be worth having a valuation carried out by a qualified surveyor if you have the funds.
If the property has no equity in the current market and you can afford the mortgage repayments you could still keep the property even if both bankrupt.
Might be worth further research to be sure of the value.
www.Bankruptcyhelp.org.uk
0800 078 9367 |
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personally planning on going bankrupt
