Questions you have before making a decision to go Bankrupt and the Bankruptcy process

Moderators: TalbotWoods, JaneClack

BySlim_Jim
#4461 Hi,

My first post here. I have been running a good business for many years but last year I suffered a personal tragedy and things went downhill rapidly. I made very bad descisions and, due to easy credit, ended up in a large debt very quickly. I have now got my head together but these debts seem to have happened like a whirlwind and I cant understand what I was thinking when I took them on. I have basically gone from quite affluent to hugely in debt in a short time. Struggling to fight my way out of depression and see a brighter day is not helped by this. I feel angry in part at the banks for lending me the money in the first place as I now realise I was not of sound mind! Don't knock it until you've been there, I am a strong, independant guy but my world fell apart in a single day.

Anyway, as I said, I'm getting through the greif now and want to move forward but I find myself heavilly in debt.

I am tempted to go bancrupt although I may have lied in small ways (about salary) to get various loans, I can't remember so I fear a long discharge period. Also, I don't want to bring shame on my family by having my bancruptcy printed in the local rag.

Is there a way I can go bust in another town (or country) so as not to affect my family? Also, is this my best option? I live in Bristol at the mo.

Thanks in advance. I feel so bad about my situation but am determined not to fall victim to depression. I have lots to offer others and now want a less complicated life with a simple job and time to offer my time to help people going through what I did. I also feel angry at the banks and would like to stick their loans where the sun don't shine. They were far to keen to lend me ( a depressed person with no assetts) money.
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ByJaneClack
#4464 No I am afraid you have to go bankrupt where you live - if you moved elsewhere your previous address would be quoted anywhere and in another country would not wipe out your debts over here (although it would probably wipe out any assets you may have had!)

The law has changed Slim Jim. You probably realise from reading these posts that bankruptcy now only lasts for one year and many people are being discharged earlier. As to being economical with the truth on loan applications this will only really pose a problem if you have never made any payments.

Go to http://www.insolvency.gov.uk where you can download the leaflets to read which should assuage your fears somewhat. Then phone NDL, Payplan or CCCS who will all give you free financial advice to see if it is the best option for you - they ALL give best money advice. Or arrange an appointment at your local CAB.

You have nothing to lose and potentially a lot to gain! :wink:
BySlim_Jim
#4465 Thanks. I didn't mean another country as a way of running away. I was talking about like Scotland so my name didn't appear in the local rag and I may be able to keep it fairly secret.

At the mo my business is still trading but I can't seem to generate profits like I did before and before long, i know that the cashflow will run dry. My interest payments are only about £100 a week but if I can't make any more than that, i may as well give up now.

I am trying to turn things around and would rather repay the debts but I fear insolvency is quite likely in the next 12 months.

My loan payments are about £300 a week at the mo. What do you think my chances are of getting an IVA for £100 a week over 5 years?

Thanks again. Nice to know there is help out there. Sometimes I just want to walk away. My heart is broken but I know there is no point in doing anything silly over money, especially money owed to the scumbag banks! They've had thousands out of me over the years so I would not feel bad about them losing out, it's just my family and my future prospects I worry about.
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ByJaneClack
#4466 I wouldn't go to Scotland - rules are different there and you would need to prove apparent insolvency by a CCJ or something and it would last longer - and, as you now know, still appear in the local rag with your previous address.

Depends on how much debt you have got as to whether £100 would be enough for an IVA. I am afraid I rather doubt it though.

Your family would be more upset at you hurting yourself any longer - which is what this debt is doing on top of how you felt anyway.

The whole point of the new bankruptcy regime as it is now under the Enterprise Act 2002 is to allow honest entrepreneurs - in business or in life - to pick themselves up, dust themselves down and start all over again!!

I have said this before and it bears saying again - we used to have a culture (and still do in certain circles) of watching someone go down and then going ahead and kicking them in the teeth. Then the powers that be - as they were encouraging more and more businesses to set up - finally cottoned on to something the US had realised years ago. If you give someone a chance to start again they often do - and their economy is doing all right, thank you. Don't beat your head against a brick wall any longer than you feel able to. You may feel your business could do well - well break the cycle, get yourself sorted without the burden of debt, do your market research etc during the term of your bankruptcy and start again.

I feel like Pollyanna!! But it is true - but don't take my word for it - look at other posts here and get some other free advice and now I am going to bed!
Byskint1
#4472 Hi.

I'm not sure if this will reassure you or not.I went bankrupt in Bristol.

Terrified of notice in paper due to personal reasons.
The OR would not agree to withholding the notice but explained where it would appear.

It will be one line posted in the legal section in the back of the Western Daily Press.With the other 15 bankrupcy notices for the same day!!!!

Inless someone was really looking for it I doubt they would ever know.

If you were to choice this option.
There is nothing to be ashamed of by going Bankrupt.It is sometimes the only way to make a fresh start.

Remember the Banks never lose out, even in these circumstances.Tax breaks ect.

Hope this might help. :)

Good Luck.
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