Reply to: Bankruptcy

[lilelvis2000]

I know someone very well who went bust. It was a very simple affair as she had nothing. No property etc just a lot of unsecured debt.

Yeah, I think as long as you don't own a house or any large assets then you are ok....They may take a look at your shares in your company however. I don't know how this will work...but you could dispose of those to a relative and then reacquire them afterward...but I think there is some type of time scope on this.

The best place to get advice is of course with an insolvency solicitor or even the citizen's advice bureau as they see this all the time.

Good luck.

[HeliCraig]

She told the bank about her past and they told her as long as there was no fraud involved, no problem.

Yeah, the banks like to keep a monopoly on the Fraud... they don't want enterpising employee's coming up with better ideas!

See Here...

Sorry I can't offer any useful advice.

[Jubber]

I know someone very well who went bust. It was a very simple affair as she had nothing. No property etc just a lot of unsecured debt.

Good advice (well, this is a matter of how you see it) was that she signed on just before going bust as you get relief on the fees, but you still have to pay a deposit. Stay on the dole why you are actually bust then you don't have to make any further payments once you are dischared as obviously, you still have nothing. She was discharged after 6 months as there was nothing to haggle over.

She was very worried that the receiver would come and strip her (rented) flat, but they are only interested in items of over 3 grand or so, resale value, so unless you have hordes of diamonds and fine art, no worries. They even let her keep her car as she said she needed it to 'look for work' (ahem).

4 years on she now contracts with a bank in the city. She told the bank about her past and they told her as long as there was no fraud involved, no problem.

[lilelvis2000]

My wife nearly went bankrupt...she got some loans (from me) and used a lot of her other cash to pay a portion of the debts she had...as well as the IP's bill - which was £25K and his solicitor £11K. She had the bankruptcy annulled. The IP only held off for such a long time (5 years) because he "thought" the house was in negative equity...yeah right.

The IP will still want his cash before he discharges you..and if that's more than what you're assets are..he may not do it. You'll need to negotiate his fees as well. They charge about £150-300/hr BTW plus costs. It may be worthwhile to have your accountant do the negotiations.

IMHO unless its a mountain which you will never be able to climb over..don't go bankrupt.

[Platypus]

hang on, if its just the tax man, then its the ltd co that goes not you personally. its the ltd co that owes... this is the whole point of using ltd co. you wouldnt lose house as its not a company asset.

The majority of my income comes from a self-employed venture, so it's me who owes the money, not my ltd. But thanks for the advice.

(I suspect that as the director of a ltd, if any of you folks "spent the tax money" then hmrc would come after you personally as it was you who abstracted the money from the company).

[Platypus]

But from a shellfish point of view, I'd rather you did go bankrupt. Then your house will be auctioned off cheap, will help to accelerate the HPC, and I'll be able to pick it up for a song.

Sorry, but I rent my house.

[KentPhilip]

I told you B-T-L was a bad idea.

WHS I was going to say that.

But I was listening to some bint on Radio 4 the other day who said that she talked to her mortgage company to ask them to stop the interest and reduce the repayments to a small amount. And they did.

So maybe instead of going bankrupt you could try to negotiate that, and keep paying hardly anything for many years, until inflation (eventually) inflates away those debts.


But from a shellfish point of view, I'd rather you did go bankrupt. Then your house will be auctioned off cheap, will help to accelerate the HPC, and I'll be able to pick it up for a song.

[TykeMerc]

...but I hereby award you 10 Moral Support Points.

tl

Another 10 from me.

I know how expensive divorces are, even though we didn't get lawyers involved, with 3 kids I wound up approx £250k down. Fortunately insolvency wasn't on my horizon and I can't begin to imagine how hellish that must be for you

[thunderlizard]

No actual advice...

...but I hereby award you 10 Moral Support Points.

tl

[OwlHoot]

hang on, if its just the tax man, then its the ltd co that goes not you personally. its the ltd co that owes... this is the whole point of using ltd co. you wouldnt lose house as its not a company asset.

All debts except CSA and a few others would be written off and you would no longer have to pay them even if assets dont cover them.

I have a feeling they can come after directors now. In any case, if the company is wound up I think you'd be disqualified from being a director for several years.

Also, if you think a winding up petition is imminent, make sure there's no money left in the company account because that will be frozen.

[TykeMerc]

Scooby, if you check you will find that SC and DV clearances are done by one prime agency and they take a very, very dim view of Bankruptcy, IVA's and even CCJ's.
By default they check with the credit reference agencies and negative financial indicators are taken as an increased Security risk. The standard forms all have a section involving financial history even BC if memory serves.

I've got a PDF copy of the BC and SC forms kicking about I'll check, but having filled them out again in the last 6 months I'm certain that the questions are asked.

If the Department or Defence contractor needs SC and above then they don't get to set what's considered cleared, it's down to the HMG Vetting Agency.

For obvious reasons working for any of the banks requires a credit check these days too.

[scooby]

Divorce, school fees, a period when I didn't work for 12 months due to feeling like a loser. Credit funded the lot. Now I've spent my tax money and Hector is cross.

hang on, if its just the tax man, then its the ltd co that goes not you personally. its the ltd co that owes... this is the whole point of using ltd co. you wouldnt lose house as its not a company asset.

All debts except CSA and a few others would be written off and you would no longer have to pay them even if assets dont cover them.

[scooby]

Bankruptcy means you will not get Security Clearance so future gigs at many HMG departments will be impossible. Financial institutions also won't touch you with a barge pole for work either, it's a very serious step.

sorry, this is wrong. It depends on your background and dept you're asking clearance from.

[DodgyAccountant]

Hi Platypus

How upset is Hector?

He may put your company into compulsory liquidation and then appoint an Insolvency Practitioner to liquidate any assets - probably big fat zero. If you have acted 'wrongly or fraudulently' as a director, you will be personally responsible for the tax. Not keeping Hectors cut does not go down well. You may get banned as a director - minimum 2 years.

If you have no assets, the IP will probably take an offer on the tax bill - maybe 50-70% or so. All this can take a some time.

Depending on other debts, if you can get a well paying contract, you could survive without going bankrupt. If you get banned as a director, just work through an umbrella company.

PM me if you want

Best regards

DA

[skelm]

Hope everything works out!