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Head n Sand
Starting Member
2 Posts |
 Posted - 30 April 2009 : 12:36:31
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Hi I would really like anyones opinion of what I should do in my current situation, I'll try to be as brief as I can.
I owe approx £37,000 to various creditors, Cards, Loans, Overdraft, and with negotiations with my creditors I have had my interest frozen on most debts and in the past year have paid them back approx £7500 (my debt was £45k) which is great, however in January I was made redundant and have not been able to find a job as of yet. I have been paying all my creditors token payments, some more receptive than others, but I have started to get a few letter which seem a little sterner - stupidly I have ignored these and thrown them away.
I feel that bankruptcy may be looming and I have some doubts/questions that I would like to ask.
Do you think that in my current situation my creditors will proceed with making me bankrupt? It's only been a few months and I am trying to find employment.
I haven't taken this as seriously as I should have as I have never been out of work I thought that it would only be a matter of a short while until I got a job, I am now not so flippant. I am due somewhere in the region of £4000 from my ex-employer as I have had to claim leu of notice as they went insolvent, I would like to put this money towards starting a business, as I am a good photographer - if I do decide to go into business will the bankruptcy OR take the equipment away, or will I be allowed to keep this stuff as 'tools of the trade' - I ask as it will take a while to get a business up and running and worst case scenario I get made bankrupt before I get my first or many orders.
If I am made bankrupt what will they see as assets of value, I ask this as there are somethings I don't want to loose and not sure if they will consider them for sale. I don't have a car or own any property.
I have the following, can anyone tell me the likely hood that I will have to give these up
Guitar - £399 resell value - £300
Guitar - £369 resell value - £300
TV - £450 resell value - £350, Xbox 360 (used as DVD player) £220, resell value - £140
Old Mac PowerBook - resell value about £200 - £300,
Obviously various Photo Equipment - which I will need to start my business
Any thing else I don't mind if they take but I love my guitars!!! I like TV etc and my Mac is my communication porthole to the world!!
In my situation what would you guys do, would you actively seek bankruptcy or keep trying to hang it out with creditors until better days come.
Can anyone point me in the direction of anyone who could advise a potential bankruptee (??) who wants to start being self employed
I thank you for taking the time to read this
Paul |
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gettingoutofdebt
forum expert
2418 Posts |
Posted - 30 April 2009 : 13:08:58
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Hi Paul,
The assets you have listed shouldn't be taken by the OR so you should be able to keep those.
I would chase up the £4k that is owed to you and use this to appease your creditors in the meantime while you work out your best way forward. Creditors rarely make people BR but you should speak to them rather than ignoring the letters.
Whether you decide to try to make a token payment to the creditors really depends on whether you think your situation will improve over the next few months?
You should speak to the CCCS and maybe a couple of Insolvency Practitioners to review your options but with £37k worth of debt, no assets and living on benefits BR would probably be your best solution.
You should also discuss the £4k and using this to setup a business as this could be viewed negatively if you end up declaring BR a few months down the line. |
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gettingoutofdebt
forum expert
2418 Posts |
Posted - 30 April 2009 : 13:11:42
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| Just to clarify regarding creditors making you BR - HMRC and councils will make you bankrupt. I have also read that AMEX have done this a couple of times as well so if these are one of your creditors then there is a chance that they will pursue you for BR. |
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Head n Sand
Starting Member
2 Posts |
Posted - 30 April 2009 : 13:22:10
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Thanks,
I don't owe any tax or anything to councils and I managed to pay AMEX off quite early, so that looks good!
In terms of the £4000, I just want to clarify that I don't really want to do both, that is go bankrupt and run the business, really though I just thought that I am finding it so hard to get a job at the moment that starting a business is a great option, and if it starts to work out then there would be no need for me to go bankrupt.
However I am interested in what you have said regarding them viewing the £4k to set up a business negatively - if I do it with the best intentions of wanting to pay back what I owe and trying to stave off bankruptcy wouldn't they see this as a positive? Also if I was to be made bankrupt or apply myself (unlikely) if I did get to keep my 'tools of the trade' and started to run a profitable venture would I be able to liaise with the OR and maybe start paying back some money each month, or come out of bankruptcy and starting paying it back, or does it not work that way??
I think I will call the CCCS this afternoon.
So much doubt and speculation around this - I don't really know what is for the best!!!
Thanks for the advice so far.
Paul |
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gettingoutofdebt
forum expert
2418 Posts |
Posted - 30 April 2009 : 13:49:53
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| The business or BR is a tricky one. On the one hand you would be using the £4k to try to earn a living and pay off your creditors but what if the business fails? I can't say how the court would view that but the CCCS should have an idea. |
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Reviva UK
Advanced Member
United Kingdom
2452 Posts |
Posted - 30 April 2009 : 15:36:07
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If you think there is a realistic posibility of earning a living and making an agreement with creditors to clear the debt then it is perfectly acceptable to use the 4k to futher this option.
I would suggest you try this approach for a few months and see if you are laking headway then review your position in say September when you will have a realistic view - with some history - of wether you can realistically repay these debts
Paul Johns
Assisted Bankruptcy Specialists
Reviva UK
http://www.revivauk.com
Real People ..... Real Debt Solutions
www.revivauk.com |
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