- Fri Mar 03, 2017 1:46 pm
#33225
Hello all, been having a look around the forum and there's a lot of very good advice here.
I'm currently in a bit of a bad situation myself and in the process of taking advice. I have been advised to go for a Minimal Asset Process Bankruptcy. I discussed it with a friend who brought up a few good points (even though she admittedly knows nothing about Bankruptcy).
I have about £10000 debt to 7 creditors with the largest debt just over £6000 (Council Tax arrears). 2 debts are business debts (£1900 owed to HMRC). I've been in debt for more than 10 years and my debt now is a quarter of what it was 10 years ago when my financial problems started, I've worked hard to pay off a lot of debt and reduce it to what it is now.
Unfortunately it looks as if my current situation will get worse within the next 2 or 3 months and to be honest I feel like I'm struggling to cope, so I need to reassess the situation.
I have a few questions...
1. I currently trade as a VAT registered sole trader and trade in my own name. What impact would this have on my business? Would I be allowed to stay self employed? I use 3 suppliers but don't have credit accounts with them (I pay for the goods as I need them). Would my VAT registration be cancelled due to some of the debt being VAT? I'm well under the VAT threshold but two of the suppliers only supply VAT registered traders and some of my customers (most clients are businesses) use me as they can claim VAT back. The business also gives me a small income until I'm able to find better employment.
2. Would my car be taken away from me? At the moment I need it for my business. I also use it to help with my sister and her children who live 15 mile away. A friend suggested that as it's a 4x4 I may be told to replace it with a small car or van which wouldn't be ideal for me, I occasionally do repairs to equipment on farms and the equipment are usually in places not accessible by car or van hence the need for a 4x4. The car isn't worth a lot - I bought it for £700 3 year ago, a friend in the motor trade suggested that it may be worth £600 to £700 in the current condition although with a bit of work it could be worth about £1000, unfortunately it would cost about what it's worth to get it up to it's full value.
3. The house I live in is owned by a relative, I live rent free but in charge of council tax and bills. This is a temporary arrangement. The house will be put up for sale in May and I will have to move on. Will Bankruptcy cause problems for me finding a private rent home? I've been on a council housing waiting list for 2 year but don't appear to be going anywhere.
4. As my home is owned by a relative, I believe that makes them my landlord. Would they be informed that I have been made bankrupt? The reason I ask this is that I believe this will have a negative impact on an already strained relationship with my family.
Any advice or suggestions would be greatly appreciated and I apologise for the long rambling questions above, I find it hard to write these posts asking for advice.
I'm currently in a bit of a bad situation myself and in the process of taking advice. I have been advised to go for a Minimal Asset Process Bankruptcy. I discussed it with a friend who brought up a few good points (even though she admittedly knows nothing about Bankruptcy).
I have about £10000 debt to 7 creditors with the largest debt just over £6000 (Council Tax arrears). 2 debts are business debts (£1900 owed to HMRC). I've been in debt for more than 10 years and my debt now is a quarter of what it was 10 years ago when my financial problems started, I've worked hard to pay off a lot of debt and reduce it to what it is now.
Unfortunately it looks as if my current situation will get worse within the next 2 or 3 months and to be honest I feel like I'm struggling to cope, so I need to reassess the situation.
I have a few questions...
1. I currently trade as a VAT registered sole trader and trade in my own name. What impact would this have on my business? Would I be allowed to stay self employed? I use 3 suppliers but don't have credit accounts with them (I pay for the goods as I need them). Would my VAT registration be cancelled due to some of the debt being VAT? I'm well under the VAT threshold but two of the suppliers only supply VAT registered traders and some of my customers (most clients are businesses) use me as they can claim VAT back. The business also gives me a small income until I'm able to find better employment.
2. Would my car be taken away from me? At the moment I need it for my business. I also use it to help with my sister and her children who live 15 mile away. A friend suggested that as it's a 4x4 I may be told to replace it with a small car or van which wouldn't be ideal for me, I occasionally do repairs to equipment on farms and the equipment are usually in places not accessible by car or van hence the need for a 4x4. The car isn't worth a lot - I bought it for £700 3 year ago, a friend in the motor trade suggested that it may be worth £600 to £700 in the current condition although with a bit of work it could be worth about £1000, unfortunately it would cost about what it's worth to get it up to it's full value.
3. The house I live in is owned by a relative, I live rent free but in charge of council tax and bills. This is a temporary arrangement. The house will be put up for sale in May and I will have to move on. Will Bankruptcy cause problems for me finding a private rent home? I've been on a council housing waiting list for 2 year but don't appear to be going anywhere.
4. As my home is owned by a relative, I believe that makes them my landlord. Would they be informed that I have been made bankrupt? The reason I ask this is that I believe this will have a negative impact on an already strained relationship with my family.
Any advice or suggestions would be greatly appreciated and I apologise for the long rambling questions above, I find it hard to write these posts asking for advice.
