Bankruptcy?

[treequip]

Nah he didn't say declaration just said order to attend court to answer questions. Did ask if it had the court stamp on it and it did. And a long list of things he needs to take. Like statements and previouse tax returns etc.

That was my opinion Steve. He seems to think its the best way out of it. But being a freelancer means his car could go. What impression I got from reading through the Internet last night.

 

Always thought that if you made a good offer of repayment they are more or less obliged to accept it.

 

Sounds like a stat dec. Alarm bells

[Rich2484]

So what exactly is a stat declaration me thingy then??

 

And what does it mean. I'm just intrigued by it all now.

[Eagle]

Going bankrupt for £5k! I think he is insane! Get him down to his local Citizens Advice Bureau (CAB). They will help him put together a financial statement and make an offer to his creditor on his behalf. They should take that much more seriously and any court would / should accept that proposal if backed by a financial statement.

 

He should get a meeting with the CAB ASAP and then write to his creditor informing them that he is taking advice from them.

 

Basically get free advice... Don't waste money paying if you don't have any.

 

 

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[treequip]

So what exactly is a stat declaration me thingy then??

 

And what does it mean. I'm just intrigued by it all now.

 

First stage in the bankruptcy process, you have to declare your assets

 

I know a man in the trade, I will ask him to make sure tomorrow

[hedgesparrow]

Nah he didn't say declaration just said order to attend court to answer questions. Did ask if it had the court stamp on it and it did. And a long list of things he needs to take. Like statements and previouse tax returns etc.

 

for 5k he does not need to go bankrupt get him to go the the citizen advice they will help him out he may be able to get a IVA which is a agreement with his creditors to pay off his debts at a agreed amount it is a legal contract if he does not pay they can then ask for the full debt to be paid off. in court. trust this is of some help

[Rich2484]

Not sure how many assets a freelancer can have. I've just looked at mine and apart form a few tool boxes and the land rover I havnt actually got any. Don't own my own home. And don't have any saws that are mine.

 

Guess I would be buggered if it was me then

 

 

Will ask him tonight if he has had any legal aid yet. I did read that they can force bankruptcy if they think you are unable to pay the amount you offer.

 

So now I've started the thread over it what does going bankrupt mean and what does it do? I've spent hours last night looking at the Internet but there is so much on there and most contradict each other. I know you have to pay for it, and you lose anything you may own.

[hedgesparrow]

Not sure how many assets a freelancer can have. I've just looked at mine and apart form a few tool boxes and the land rover I havnt actually got any. Don't own my own home. And don't have any saws that are mine.

 

Guess I would be buggered if it was me then

 

 

Will ask him tonight if he has had any legal aid yet. I did read that they can force bankruptcy if they think you are unable to pay the amount you offer.

 

So now I've started the thread over it what does going bankrupt mean and what does it do? I've spent hours last night looking at the Internet but there is so much on there and most contradict each other. I know you have to pay for it, and you lose anything you may own.

cost £500 to go bankrupt if he is struggling to pay 5k then £500 is a lot to find. it will clear his debts but will not be able to obtain any credit for 5 years.

its a big step to go CAB is his route. they should be able to help him out.

[Ray1]

Going bankrupt for £5k! I think he is insane! Get him down to his local Citizens Advice Bureau (CAB). They will help him put together a financial statement and make an offer to his creditor on his behalf. They should take that much more seriously and any court would / should accept that proposal if backed by a financial statement.

 

He should get a meeting with the CAB ASAP and then write to his creditor informing them that he is taking advice from them.

 

Basically get free advice... Don't waste money paying if you don't have any.

 

 

Very good advice, a work collegue owed natwest 25k he went to the CAB they sorted him a plan out and approached the bank with it, they settled for a pound a month until its repaid. 5k is nothing to worry about or think of going bankrupt over.

[defenderjack]

as others as have said 5 grand could be sorted better ways than going bankrupt but if he does and wants to keep his car he will have to prove why it is so valuable to his work and why he cant get a cheaper one , . they cant touch work tools and if the car is valued under 1000 pounds they cant touch it , but if he say owns a 3500 pound car and wanted to keep that one he would need to find 2500 to buy it back off the the official reciever , unless like i say he can simply prove that no other vehical other than the one he owns will do the job ,.

if he owns a 20 grand landrover to drive to the yard in to meet work mates he could do that in a 300 quid fiat so they would take it as an asset ,,

if he does go bankrupt he would also need to watch what he earns for the next 3 years as if he earns to much they can take money away to cover past debts , so basically for 3 years you need to make sure your outgoings are as high as possible ! the whole car thing is down to how much of a friendly official reciever he would get !

[Stephen Blair]

He should take responsibility for his actions, you buy stuff, you pay it off!!

Unless he has been conned!

 

 

Paul listen to Treequip, he is right.

 

Ltd is not a get out of jail card for being irresponsible.