Debt

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My bussiness(I am sole proprietor) untill the last 6 months has been quite succcessfull, unfortunatially work and orders have dried up.

I now owe the taxman, the vatman,the bank,and others about 55,000 pounds Plus a mortage of about 95,000.I have used up my savings trying to keep the bussiness going,and although I amm still trying to get orders things look bleak!!

No creditors are chasing me yet But this is inevitable.

Please if any body can help with any ideas of what i should do for the best, i.e. should i declare my self bankrupt, contact every i owe money to ask for time to pay??? I really am at the point of despair.

Les.

-- Les Johannes (les.j@whsmith.co.uk), March 16, 2002

Answers

I think it is likely that particularly the VAT or IR will petition to make you bankrupt before long.

You may as well save yourself the fees in doing it yourself and in the meantime squirrel away as much in cash as you can (dont put it in a bank account!) for when the axe does fall.

Simply tell your creditors that you are waiting to be made bankrupt.

-- David J. Button (davidjohnbutton@supanet.com), March 16, 2002.


Les,

Sorry to read about your predicament - but a word of caution - don't take any notice of the possibly sick twit who responded i.e Button - he can't wait to 'advise' everyone to go bankrupt. I would take advice from appropriate advisers.

Good luck......Joy

-- Joy Harker (fightingback@harker.go-plus.net), March 19, 2002.


Bankruptcy really is the last resort. If you do decide to go down this road, then don't do as previously advised and "squirrel money away" as this would cause trouble with your Trustee in Bankruptcy when s/he finds out.

I would suggest that you have a word with your small business advisor or whatever they're called now at your bank - if your business is a viable one and they can see that you're just going through a sticky patch, then they may be willing to lend you some extra cash. If there is equity in your house, then they may be willing to secure funds against that. If you haven't already talked the problem over with the taxman and vatman, then I suggest that you do - because they will take precedence over any other debt.

I don't know much about running a business, but I really would suggest that you talk to an advisor to see what options are open to you. Good luck.

-- pendle (pendle_666@yahoo.co.uk), March 19, 2002.


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