Sorry if any of this is random!
I have about 30k worth of debt (Bank loan, and 3 credit cards) - plus a possible inland revenue debt - which I cannot even imagine how much it is but could be another £30k. My debt was caused by using personal credit to keep my Ltd company going - which itself is not in debt and has now closed! yes I know having a ltd company was meant to protect me - but if no one will give a new company credit you end up using your own. Anyway about six months back I gave up my rented flat, sold my TV etc and moved abroad to work as a freelancer (however was not able to secure a long term visa) so have come back to the UK. I am now crashing with friends, with zero funds and the above debt. I am starting to look for a job, and in my specialist field could get one above £40k + - its just I decided to have my own companies for the last 5 years! - will be odd being employed again!
So some questions:
I am thinking of going bankrupt rather than IVA as I have no assets, apart from my laptop (3 year old and worth nothing). I do have a car on an agreement so I assume that will go back.
Will they go though my credit card statements, personal bank statements to see why and how I spent the money - find this a real invasion of my privacy.
In terms of the inland revenue - I assume that will all come out! I also used my personal joint account at the time to move money around from clients etc to try and keep the company afloat. Will they go into my company affairs even though the company is now closed ?
I understand under the new rules that I will only be bankrupt for a year, after that I assume I have six years before it will drop off my credit record ? and be able to get mortgage etc ?
Now lets say I go bankrupt today, (I am not working and not signing on), and 1 month later I get a job for £40k++ will they take money from that during my bankruptcy time ? How do they assess your living expenses? How do people rent flats when you are bankrupt? If I find a new flat tomorrow for £££ can they say its to expensive you can live in this smelly bedsit! Are you expected to live at income support levels ? If I am earning £40k +# and buy a car for cash say £1000 from my salary etc ... would that not be allowed?
Am I able to work as a contractor ? Self-employed ? Or do I have to get a normal job - I undersatnd I cannot be a director of a compay.
Some other questions ....
- How far back to they go looking for information ?
- What happens if £7k of the debt was secured by someone else ?
- My current account was a joint account which is now closed .. as of today I have no bank account... so no statements in fact when I went abroad I chucked most of the paperwork out (ignoring the problem!)
-what happens if I "forget" about a debt - which someone then chases me
for X months time ?
-As I don't have anywhere to live and will be moving into a new place
"after" I am bankrupt how does that work ? gas, water, electric, phone.
Do I have to declare to these people I am bankrupt ?
-Insurance ? ie contents insurance etc ? How does that work ? Can I obtain it ?