Going Bankcrupt

[mashhead]

Well I honestly did not think it would come to this, but this looks like my only option. I have £10,000 owed to the Inland Revenue due to a tax investigation that they carried out on me in 2007.

 

About £10,000 in credit card debt, £6000 on an agreed OD facility that I have with the 'unhelpful' banking bank

 

£3000 in other loans, plus £800 on council tax arrears, £500 or so on gas & electric, £300 on mobile phone and a couple of other bits and bobs, total ammount is +£30,000 give or take.

 

Without going into the full reasons for my bankcrupy, I can say that my issue here is compounded by the fact the rescession has almost ruined my business, and the inland revenue, and natwest are getting nasty and I dont seem to have any other options open to me, its simply a matter of time before one of my creditors makes me bankrupt, or I just get it over with myself.

 

I am very scared, and worried that I will be evicted from my home( i rent from a private landlord) and will be unable to carry out basic tasks like continue to trade my business, and pay my rent and basic bills.

 

I did have a sports car, i sold that last year to survive, the money lasted 4 months, i dont have a house on very little assets. My work van is worth less than £1000.

 

I am making just about enoigh to cover my basics, and its not enought to clear my debts, plus creditors are getting nasty and want something done, I simply dont have the money spare, and the business is not growing fast enough to cover them.

 

Due to the ammount of charges my 'unhelpfull' banking bank were putting on my account, I re-openend a basic account with lloyds TSB with no OD facility. I have given my customers the bank details for payments into this account, and have already had to ask them to change their payment details once, im afraid that I might loose some customers if i have to yet again change bank details for payment info.

 

I owe Lloyds TSB no money at all, so will that account stay open?

 

im really scared.....

[HP Mum]

I'm not an expert, but I would sit and prioritise your debts. The ones you can not get out of paying and those that can wait. Write to the ones who can wait, saying you have some priority debts and they have to put a stop on your acounts for 3-6m. Then write to those which are priorities with a plan.

Obviously you need to get some money in which does not seem like it is going to come via your business. So look at other ways to bring in an income fast. Like selling non-essential items to raise the funds to clear the priority debts fast. If you have a spare room then rent it out - if it is in a good city location, rent it by the night, rather than by the month, and you will get more money faster. If not in a city, then still rent a room for a few months. Or even your room, and you sleep on the couch or with a friend for free. Anything to get some £s in fast. Or give up your rental and take a gamble on getting a bigger house and then sublet rooms in it, if possible, for more £s..

You say you don't own a house or have assets - but you still need a roof over your head and don't let anyone strip you down any further. I would let the fear drive you to survive and fight, not collapse....

Good night

[Dodgy Geezer]

Hi.

 

The Inland Revenue made me BR for £12k in November 08.

Its relatively painless, and with no assets, you wont regret it.

Like you, i am Self Employed and have carried on as if nothing has happened. I still earn crap money, so they never got a penny:D.

That will teach them to be unreasonable.

After the initial interview where in all honesty, you have to justify your reasons, i think i have only had 2 letters since. The second being an Income and expenditure form for them to assess any payment plan.

Have a word with your landlord and see how they feel about it.

If you feel this is your best option, go for it.

 

The only scary part is the not knowing. Now i know, there is no reason to be scared.

 

Best wishes. Keep us informed.

[palomino]

HMRC threatened several times to make me bankrupt. They must have eventually realised that, in my case, it wouldn't achieve anything at all so they didn't do it. I suppose they were being 'responsible' in not wasting taxpayer funds.

 

I have asked a number of creditors - as well as HMRC - to petition for my bankruptcy. All have refused. I guess it's when I say "Please will you make me bankrupt? I can't afford it myself and no-one else will do it" they realise I'm a lost cause...

 

Anyway, to get back on topic, any assets you have are apportioned pro rata to all creditors. In your case HMRC might get something back but it definitely won't be all they are looking for. It might even be nothing at all.

However they will have had to fork out around £1600 for the privilege of petitioning for your bankruptcy in the first place.

 

On the other hand they have a statutory obligation to recover monies due (or attempt to do so) so they might just go ahead.

 

As a general comment to those in your (and my) position : the banks seem to think that they can cause a recession and then blame it on you. Not an ounce of contrition or remorse. Instead they adopt a hostile and agressive approach to collecting on debts which, in my case, has proved wholly counter-productive.