Looking at Personal Bankruptcy as an option

Discussion in 'Insolvency' started by Craig34, Mar 6, 2020.

  1. Craig34

    Craig34 UKBF Newcomer Free Member

    3 0
    Hi - I have been scouring the web for advice and stumbled on here where the advice seems much more pertinent to my situation than other debt advice sites

    To cut a long story short, I was made redundant from a bank during the financial crisis and the shares I had at the time in said bank were covering the debts I had. The bank collapsed, the shares were worthless and I ended up with debts I couldn't repay. As such I entered into a nominal plan paying small amounts. Total debts of £65k which are now between two creditors £50k and £15k

    I set up a ltd company with a colleague - we have 50 shares each and our wives have 1 (B shares) . The company struggled to start with but in the last year has performed better to the point where we are getting ok dividends (we pay minimum wage and take dividend as the rest)

    The larger creditor is now putting on pressure for the debt and alongside a few options I am considering bankruptcy as I don't have the money - my wife could pay the beneficial interest in our home so I guess that would be safe (which was my main concern)

    The other concern is around my shares in the business. I appreciate I would need to step down as a director for a year or more (my wife could step in)- the share in the business isn't really worth anything to anyone as the business has no real value bar making profit every year - how would this work? I would need the share to make money to pay the bankruptcy & live

    Also with dividends, our wives get these annually as well - how would this work in bankruptcy? Sometimes they get larger dividends than we do depending on tax situations.

    I appreciate there is probably more info needed to assist with the questions above. Really appreciate any input/advice !

    Craig
     
    Posted: Mar 6, 2020 By: Craig34 Member since: Mar 6, 2020
    #1
  2. Lisa Thomas

    Lisa Thomas UKBF Enthusiast Free Member

    3,486 436
    Have you considered an IVA? If your wife is going to raise funds to acquire your interest in the home you potentially do this via an IVA instead of Bankruptcy as an alternative.

    The treatment of shares in Bankruptcy is a little complex.

    I have some guidance from the Official Receivers office, if you want to DM me with your personal e-mail I can forward it to you.
     
    Posted: Mar 6, 2020 By: Lisa Thomas Member since: Apr 20, 2015
    #2
  3. Craig34

    Craig34 UKBF Newcomer Free Member

    3 0
    Hi Lisa - yes looking at all options at the moment - I'll pop a DM over , thank you !
     
    Posted: Mar 6, 2020 By: Craig34 Member since: Mar 6, 2020
    #3
  4. Lisa Thomas

    Lisa Thomas UKBF Enthusiast Free Member

    3,486 436
    I have emailed you the guidance, hope it helps.
     
    Posted: Mar 9, 2020 By: Lisa Thomas Member since: Apr 20, 2015
    #4
  5. Craig34

    Craig34 UKBF Newcomer Free Member

    3 0
    Thanks Lisa- got it and popped an email back if you get time to have a look. Really appreciate your advice and info, thanks again
     
    Posted: Mar 9, 2020 By: Craig34 Member since: Mar 6, 2020
    #5