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

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By PaulG
#3482 Hi

I have around 45K debts (Mainly credit cards and loans) . All of these were built up 5 years ago or more. At this time i was working full time, married with one child and owning 2 houses (both motgaged)

6 years ago, I split from my wife. The divorce outcome was, shhe got the asstes, and I got ALL the debts.

I met someone new, remarried and obtained another job. I moved into her council house with nothing but a few clothes. I wrote to all my creditors with an income and expenditure showing approx £100 per month excess. This i paid pro rata to all my creditors

About 4 years ago i lost my job and claimed unemployment benefit. I wrote to ALL my creditors again explaining the situation and was making token payments of £1 per month to each of the creditors.

3 years ago, my wife started a business (her money set it up) The bank account obviously is in her name. I am the only employee and my wife isnt trained in the profession of the business. Until this year, there wasnt enough profit to justify me taking a wage, but since April this year I have been paid an annual wage of around £4500. During this time, the £1 token payments were still being made.

I now feel that it is time to take the BO route as I see absolutely no way of ever paying off my debts.

I am however, concerned that the business will be treated as mine as she has no training in the profession and I am the only employee (also i did not recieve a wage for the first 2 years) We claim WFTC (max rate) as we have 6 children (4 of which were from her previous relationship) and the total income is around £6k.

There is a car in the business (worth around £5k) . I am worried that the OR will treat the business as mine, close it down AND take the car.

Any advice / help would be appreciated.
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By Nicky
#3488 If nothing is in your name I cant see how it can be treated as your business. You say your partner put the money up for the business and everything is in her name and you are an employee? Why do you think the OR will think the business belongs to you? An OR wouldnt normally ask an employer "Do you know your business".

Go and make an appointment with your local CAB, they would have a much better idea of what you can expect and will advise you.
By PaulG
#3490 Ty Nicky.

Like most people I assume, the thought of going for a BO is very scary.