- Fri Jan 21, 2005 11:11 pm
Get him to contact a free debt advice agency and/or visit his local CAB.
If he were to sell his company to his wife for a minimal amount this would be regarded as a transfer under value and the OR would overturn this in a bankruptcy! Not a clever idea. Unless his company is a limited one there is nothing to stop him working whilst a bankrupt unless he changes the company name i.e. he must let people know what he was formerly trading as. If he owns a property that might cause a problem in bankruptcy depending on how much equity is in it as the OR would want his share.
He really does need some advice as there are several other things you mention - other credit debts and nothing being paid to the Inland Revenue. They are not the people to mess around with and he would do better to start dealing with them before they find him. If he doesn't come to some agreement with them and he has been earning, they themselves could make him bankrupt.
These are all generalizations and he really does need to go through a financial assessment. NDL, Payplan or CCCS could do this for him free of charge. They all give free, confidential and no obligation advice and based on his specific circumstances. That will at least give him a starting point to work from. Sometimes bankruptcy is the answer but an IVA may be a possibility or a reduced payment scheme (the debt management we talk about here).
There are solutions to debt problems - sometimes the answer may not be palatable but in the long term getting rid of a burden of debt is what anyone wants and all these agencies will give him the best advice for his circumstances.