If i go BK how will i know if i have to pay an IPO if i am self employed and don't know what my salary will be? will it be based on my last few months earnings and what if my income drops even more?
I tried a test on the business debtline flash I&E form and i will only have around £60 a month disposable if, as expected, next year is like this year.
Here are some other details of my situation..
I have £34k debts with 3 creditcards, overdraft and an unsecured loan.
I am self employed and have been carrying these debts for the last 4 years, but due to the recession i can no longer continue paying as i have earnt 70% less money this year. I have no assets.
I am in the process of setting up a DMP and I have some work lined up which will keep things ticking along for the next 3-4 months.
The problem is the end of the year until april is always very quiet workwise and with 2 tax bills to pay i fear i will be wiped out and so maybe BK is the best option.
This is not a decision i will take likely and so i wanted to work out the possibilities, pros and cons and make a decision at the start of the new year.
I am currently renting a flatshare in london, but the contract is up in november, so i am going to move up north and stay with my parents.
My first plan is to go BK, stay at my parents during the quiet months and move back to london to rent/crash at mates places once there is work again (things seem to pick up from june onwards)