experienced bankruptcy?

[GARYLIZZY]

Hi

I am a businessman from the North West area in Northern Ireland.
I was in the property related game. [not construction].
I owned 2 buisnesses for 2 years and had to close them down recently and with unsecured debts of around £25,000 was advised to declare myself bankrupt.

I am very interested in hearing from anyone who has had a similar experience and in particualr i am interested in hearing from people who planned the way back or are planning the way back into business again.

Im not sure on the route to take,to build up my credit rating,getting finance again that sort of thing?

Thanks in advance

Gary

Originally Posted by GARYLIZZY

Hi

I am a businessman from the North West area in Northern Ireland.
I was in the property related game. [not construction].
I owned 2 buisnesses for 2 years and had to close them down recently and with unsecured debts of around £25,000 was advised to declare myself bankrupt.

I am very interested in hearing from anyone who has had a similar experience and in particualr i am interested in hearing from people who planned the way back or are planning the way back into business again.

Im not sure on the route to take,to build up my credit rating,getting finance again that sort of thing?

Thanks in advance

Gary

Hi Gary, I've not been down that road but I know someone who has. First of all protect your mortgage so your creditors don't get their hands on it this needs protecting because you need somewhere to live. If you tell your bank they'll pull the plug on all your accounts, many people will tell you to max out your credit cards and catalogues, many people have done this and still had to pay it back at a lower rate of interest, the County Court are getting wise to this now and are calling it irresponsible spending.

Phone your local County Court and ask them for a bankruptcy package, they'll either want you to go over and pick one up or they'll mail you one out. You need to fill this in with every creditor and monies owed to them.

Phone the official receivers office at the County Court and make an appointment, they'll give you a day and tell you to bring all the relevant papers and your fee which is £700, most of this is the Official Receivers fee I think they charge £450 the rest goes to the court.

You'll go over with the papers and wait to see him, you go in and hand your papers over, he looks through them and decides whether you've got a case, (mostly it's a yes). He'll tell you to come back for the hearing which will be in a few months time. In the meantime your creditors will have been notified by the County Court that your are entering bankruptcy.

You go back to court all suited and booted (nice clean suite and clean shaven), tell them the recession killed your business stone dead, 9/10 they'll allow your bankruptcy, I've known people go in with £100K and rising and had it all wiped off.

Personal bankruptcy only lasts 2-3 years now mate, business bankruptcy lasts longer I think. Some people reckon it's been the best thing they've done because they can sleep at night and aren't scared to answer the phone and door. Regarding business bankruptcy and running a business I think you disqualify yourself from being a Director for a period of 5 years, you can still run a business but someone has to be the Director.

When it's all over keep a tight hand on the purse strings and just remember it's not always money money money, where there's a boom a bust will follow.

[GARYLIZZY]

Hi

Ive already been declared bankrupt by the court,as of wed fortnight past.A solicitor dealt with everything for me.

What i am not sure about is the route back into buisness from now or when my bankruptcy is discharged.You are only bankrupt for a maximum of 1 year now,i couldnt believe this myself when i was told.The only possible restricition on me would be if i as to start a limited company and even then their is a good chance that would be ok too.

Anyone who has a success story to tell,ie they came back and made a success 2nd time round, a bit of inspiration would be good.I remain confident in myself but id like to hear from others in similar situations and what they did in the aftermath of being declared bankrupt.

thanks

G

[daveetwo]

The chances are is that you will get discharged very quickly ie 6 months. BUT the problem is that it stays on your credit file for 6 years so that is likely to prevent getting finance at reasonable rates.
Perhaps you can find a partner who knows the circumstances who could be the financial side of the new business. ie the finance is arranged in his name and he have a legally binding agreement with you.

[webcrawler2050]

Was your company a Limited company or a sole trader?

[GARYLIZZY]

my company was a sole trader,but i bankrupt the company and myself

[webcrawler2050]

Originally Posted by GARYLIZZY

my company was a sole trader,but i bankrupt the company and myself

Ah - then, your assets are at risk - savings, property, cars, etc etc - The sole trader, means you are the company - technically and the assets of the company, belong to you, personally, where as LTD company, they belong to the company as it is a seperate entity. Personally and this is personally, i wouldn't go for bankrupcy for such a small amount, i;ve seen people come out of debt that much - I would suggest, writing to your creditor(s) making them an offer per month - Yes it might take, a few years but atleast you will be protected. As others, have said, DO NOT say aword to your bank, they WILL close all your accounts and there is a possibility of loosing cash in there. Bankrupcy, should be considered and thought into alot - not just because your accountant lawyer has said so, there is always a way out of this. You realise, you won't be able to get a bank account or any form of finance, not even a post office account, I think. That said, can you proove the debt wasn't "irresponsible spending" if you can't the courts will make you pay back every penny - my advice, speak to a serious litigation pro - work out your debts with your creditors, where there is a will there is a way - bankrupcy should never been seen as an easy way out as it really isn't easy. It's a nightmare!

I hope this advice, comes to some assistance

[Wayfair]

Webby, read #3

Ive already been declared bankrupt by the court,as of wed fortnight past.A solicitor dealt with everything for me.

[GARYLIZZY]

Ive already declared myself bankrupt as of last wed.
I feel ok about it,i possibly wasnt clear earlier but my home and investment properties have already been repossessed,so i really have lost everything.
All my investment properties went into negative equity and my business was losing money.
I got out rented a lovely 4 bed ,3 recption detached property +double gararge.I can sleep at night now and i get my rent paid for me.
I know it doesnt match the aspirations you have when you go into biz but i am alot more relaxed and content with the outcome.
I ll be discharged from bankruptcy within 1 year,though my credit rating will be bad for 6.
Im still ambitous and am keeping my self belief in tact,i hope to come back stronger.
Fingers crossed

[webcrawler2050]

Originally Posted by Wayfair

Webby, read #3

Buggery