bankruptcy uk?

Question

if i go bankrupt and owe tax will i be able to keep my van and tools and if when i do and carry on working and making good money will they want it all off me or will it be over,i'm not bothered about credit as my credit ratings been rubbish for years and its not bothered me ,i earn good money but a company that owes me money is not paying me and i fear i am going to be left up sxxt creek without a paddle ,people say that u have no bank account,how do people pay cheques to me so i can live or do i have to die ,is this the punishment for being scum,thanks

Answer 1

I've spoken to a solicitor about this before, apparently hey are not allowed to take away your means of making money.
Nevertheless get legal advice, not the drunken rantings of a load of drunken muppets who should still be out getting drunk or laid!!

Answer 2

Hi Steve H,
If you petition for your own bankruptcy then you will be able to keep the tools / means that will enable you to continue your trade. These will not be at risk so don't worry too much about that issue.

If you have a surplus income above £100 then the Official Receiver may want 50 to 70% of this paid via what is called an Income Payments Arrangement for a 3 year period.

The Myvesta site has a full set of Bankruptcy video clips that explain the bankruptcy process in detail. I have pasted this and some other helpful links below for you.

Bankruptcy Video Clips
http://myvesta.org.uk/media/video/bankruptcy/index.html

Bankruptcy Assistance Service
http://myvesta.org.uk/programmes/bankruptcy_assistance_service.html

Hope this helps!

Regards

Sean

Answer 3

If you owe more than you can afford there are four things you can do;

1. Go Bankrupt.
I recommend you go down this route if you owe less than $15K. It however costs £750 down at your local county court or else you can stop paying any of your creditors and wait for them to make you bankrupt though they will harass you to death if you go down this route.

2. continue as you are.
which is likely to lead to bankruptcy anyway by the sound of it.

3. Get in touch with your creditors and come to an informal arrangement. you can either do this yourself or go through a debt management company (I would not recommend this as most of them are crooks and you end up in an arrangement for years)

4. Make a formal arrangement with your creditors.
This is the now infamous Individual Voluntary arrangement and is only for people who owe £15K or more, you typically pay back 25% of your debt and are clear in five years. Mostly a con, if you don't have much cash best to go bankrupt.

If you do choose bankruptcy the court will appoint a trustee who will go through your monetary affairs and decided if you are able to make any income contributions to the creditors (typically over 12 months) this is calculated after your essential living expenses ("essential" is relative and can include SKY TV or Cable) . As you need to work to make contributions all tools of your trade will remain in your possession, and you should be out of the bankruptcy in 12 months. however during this time you will have to tell everyone you make monetary contracts with e.g suppliers or your bank about the bankruptcy. however, you should be able to get a bank account as legally banks have to supply everyone (who can prove they are not a terrorist)with a bank account, though it will be a basic one, with no cheque book or debit card. You should however be able to pay cheques into it. After 6 years your credit rating will be wiped clean as long as you do not do anything to make it bad again.

good luck.

Answer 4

If you can't have a bank account, you would probably be able to cash your cheques at one of the businesses - like Chequepoint in my area - which specalise in doing that, for a percentage.

Beware of buying goods (for your business, or for domestic use) on credit - there are quite low limits on what you can buy that way, if you are bankrupt, and penalties if you exceed them.

Answer 5

These nice people cannot take away the tools of your trade -if you make your self bankrupt it will cost you aprox 600 quid get someone else to-flog your stuff to a ltd company which you can buy for 20 quid -complicated but email me if you want to know how

Answer 6

I think you are allowed to keep the tools of your trade. Best to contact the Citizens Advice Bureau to find out more.

Answer 7

Read this Steve

http://www.insolvencyhelpline.co.uk/bankruptcy/what_is_bankruptcy.htm