Any one done it know the ins and outs.

A mate has got into some financial trouble, He has 3 kids owns a house plus a flat he rents out. he has got his own business but just cant cope with it all and is getting more and more in debt.
what would happen to his house / business if he went for bankruptcy? he has loans on top of loans his Mrs has store cards and catalouge accounts plus work accounts that are getting behind?

 

If he is a sole trader then I would expect his business to be affected by the bankruptcy.. if however it's a limited company, then it shouldn't be affected..

 

The first thing to do would be sell the flat - surely???

 

go and seek the correct advice from the cab or law firm ...

 

Exactly what i was thinking!!

 

Sell the flat. But i assume he has no equity in it, otherwise he'd have done that anyway surely.

 

as above, he has too much to loose / tie up in hassle to consider bankruptcy

 

If you sell assets prior to bankruptcy you can get in a lot of trouble so be careful.
tabetha

 

pmsl as im reading this theres a provident advert banner at bottom 183.2% typical apr

 

the cab will probably tell you somethung along the lines of...

stop all cards, store accounts, and work out repayment deals, low as possible to start with.
sell flat.
look at ALL outgoings and reduce where possible. shop at lidl for instance for stuff that doesn't matter too much.

 

who would borrow Ł300?

 

No equity in flat plus he tried t sell but it would not sell

 

bankruptcy used to be the last resort, a major embarrasment.

nowdays people do it all the time.

seems like he and his misses have been living beyond their means for a while? trick is not to spend what you havnt got in the first place really. credit cards should be banned, i dont have one never will!!

sadly tho ur mate is beyond that advise, as hes spent the dosh!

can he not remortgage his home, or at least see a fininancial adviser/bank manager. they may be able to help him or at least concilidate some of his multiple loans!

bankruptcy is not the answer in my opinion for your mate!

 

Agreed.

He HAS to go and see the CItizens Advice Bureau.

 

i have gone bankrupt and you are not aloud to run a business and they will more than lucky take his house they will pick up on every asset he has. when there is a house flat and a business that is alot to loss tell him to get an appointment with ciz advise asap and take all his paper work when i say all i mean every thing all cards morgage business they are really good and if you do what they want they should sort out payment plans for him with his debts.

 

Thanks alot for tha advice. he is off down to CAB tomorrow morning I have just text him to tell him to get every bill from debt, mortgage, cards, etc to take with him.. The bloke is an absolute nightmare and to be honest it gets on my tits as its not the first time and his parents bail him out every time!! this time his mum came to me and my mrs and asked if we could help to (he is a family member of my wife). thats why I have said NO do it your self and do the bankruptcy thing! I have never had to run to my mum and dad for money and learnt the hard way and am better fo it now. but he just does not get it !!!!

 

they are great if used properly as they give you extra buyer protection

pay off the balance in full every month and you will get a good credit rating that allows you to get mortgages at best rates etc, so they are not completely evil, only if abused.

for the topic starter, there was a bit on radio 2 between 12 and 2 last friday with www.moneysavingexpert.com maybe your mate can listen again to that as there were plenty of hopeful stories that may encourage him. he should definitely read that website as well as seeking professional help