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morgan
Starting Member
2 Posts |
 Posted - 15 March 2009 : 20:09:32
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| We are seriously considering bankruptcy as we have ended up with a home repossesion that has landed us with a shortfall bill of 110,000 plus credit card debts of 20,000 we are self employed running a small shop thats only value is the current stock, and our income is made up of mainly state benefits, my first question is will we have to let the shop 'go'? My other concern is that we have 2 children aged 8 and 10, could the OR take any of their belongings i.e 2 very old portable tv's plus dvd player's and an x box? I know its probably a daft thing to be concerned with, but its their stuff and I have had friends filling me with horror stories of stripped houses all day! Also we have no assets only personal bric a brac and ancient telly, how will this be affected. Thankyou |
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Reviva UK
Advanced Member
United Kingdom
2452 Posts |
Posted - 15 March 2009 : 20:23:52
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Hi and welcome to the forum
Bankruptcy is only one of the solutions to debt and it is always important to consider all of the solutions as this will give you peace of mind that you have explored and understand the alternatives.
These include
Bankruptcy
IVA
Debt Management
Negotiated Settlement
Refinance
However if you afe facing an additional debt of 110,000 plus your already 20,000 then bankruptcy would certianly be a serious condentor.
With regard to the shop a lot depends upon whether the shop is leased or rented, and what value of stock you currently have.
If you were to petition now then I am certain that during the afternoon of your bankruptcy petition the OR will visit the shop and claim the shop and effectively close the business.
What type of shop is it and what is the trade value of the current stock?
Secondly the OR will eclude personal belongings such as home furniture and definately will exclude your childrens belongings.
The only danger of these going is when Mr Bailiff arrives - something to be avoided and bankruptcy is certainly one way of protecting your assets and wiing the slate clean and allowing you to start again.
there are several ways that the business can be handled and I suspect that you would prefer to manage the outcome to maintain dignity and control.
You may elect to speak to one of the experts here on the site directly to get some more individual advice.
Paul Johns
Assisted Bankruptcy Specialists
Reviva UK
http://www.revivauk.com
Real People ..... Real Debt Solutions
www.revivauk.com |
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morgan
Starting Member
2 Posts |
Posted - 15 March 2009 : 21:23:16
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| Thankyou for your reply and advice. With regard to the shop it is rented, we sell alternative and fair trade clothing and gifts, the trade value of stock held at the moment is 8,000 to 10,000. We are just at the end of our first year of trading and have just achieved break even point. |
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Reviva UK
Advanced Member
United Kingdom
2452 Posts |
Posted - 16 March 2009 : 09:54:29
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Hi
That is a reasonable amount of stock and therefore if you declared br the stock would definatley be collected.
However you would be given the opportunity to make an offer to buy it back - although this is always difficult when money is tight.
Generally an Auction value is approx 10% of the trade price.
The problem is that the process can take a few weeks which means that the shop is empty and effectively the business is lost as you can't pay the rent.
You need to tread carefully and make the right decisions now so please do not rush.
Are you in arrears with the rent or commercial rates?
Paul Johns
Assisted Bankruptcy Specialists
Reviva UK
http://www.revivauk.com
Real People ..... Real Debt Solutions
www.revivauk.com |
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We are seriously considering bankruptcy
