Bankruptcy

[golfpro]

Hi
I have had my contract terminated as a self employed golf retail shop. I currently have debts of around £32k which I will not be able to pay for. I could borrow some money and also speak to some creditors to arrange payment over the next x years but one option I keep coming back to is to throw in the towel and start again (Bankruptcy). Any thoughts or advice please i.e stigma, house, future worketc etc. Will need to make a decision very soon. Many thanks for any help.

 

[deniser]

I am sorry to hear of your problems.

I can't offer any advice but wish you all the best and hope you manage to sort things out.

 

[MyAccountantOnline]

Before you do anything you might want to have a look at/call the National Debtline.

 

There are several disadvantages to bankruptcy (rightly so!), however managed well it might be the best option. Also you might well be able to keep your house cart etc, as long as there is not significant equity and you are not living above your needs (ie if you live in a heavilly mortgaged small house they will probably let you keep it rather than rehouse you)

However, if you have an income and can afford reduced payments you might be able to create your own voluntary arrangement simply by writing to your creditaor with a brief outline of your circumstances; an asset and liability statements and an offer of repayment. BE SURE THAT THEY AGREE TO FREEZE CHARGES & INTEREST!

The CAB and debt helpline can give you outline information. Be careful to avoid predetary agencies that do this for ccommission, you can almost certainly manage it yourself (or with a little help from others).

Best of luck!

Your credit file will obviously be blemished, but then you aren't likely to be borrowing any money..

 

[RailyPhill]

Before you consider Bankruptcy, I urge you to take professional advice from an Insolvency Practitioner.

You really need to be aware of the pros and cons... i.e. if you are a home owner with equity the trustee in bankruptcy can come after this. presume you are not a Limited Company and you owe the debt personally?

CAB is a great place to start...

 

[Alan R Price]

Hi
I have had my contract terminated as a self employed golf retail shop. I currently have debts of around £32k which I will not be able to pay for. I could borrow some money and also speak to some creditors to arrange payment over the next x years but one option I keep coming back to is to throw in the towel and start again (Bankruptcy). Any thoughts or advice please i.e stigma, house, future worketc etc. Will need to make a decision very soon. Many thanks for any help.

I am a licensed insolvency practitioner. What you do next will depend on your personal circumstances, for example, do you own or have an interest in any assets outside the business, such as your house? What assets does the business have? What prospects do you have of getting a job? Do you have access to family money, etc?

I would be happy to talk to you free of charge about your options - PM me with your phone number and I will call you if you would like to do this. I also recommend that you have a look at the information "leaflets" on the Insolvency Service (Official Receiver's) website - http://www.insolvency.gov.uk/guidanceleaflets/Guides.htm#Information about insolvency procedures - and "Is a Voluntary Arrangement right for me?" on the R3 website - https://www.r3.org.uk/uploads/documents/Is a Vountary Arrangement right for me - June 2008.pdf.

 

How much of the debt is secured and un-secured debt?

Pay off secured debt, the un-secured (credit cards) can wait...a £1 a month!

The Citizens Advice bureau is your first call.