now in almost 70,000 pounds worth of debt

[stevie26]

I own a business which has been operating for over 3 months. Unfortunately it hasn't grown as fast as I had anticipated and I am now in almost £70,000 worth of debt. I know the business will come good but at present the money just isn't coming in to pay the bills, never mind start clearing the debt. I spoke to an advisor about an IVA but she said it wouldn't be accepted as I don't have a steady income for them to work out a recommended monthly payment. I'm now considering bankruptcy as a last resort but am wondering if there is any way I can save the business and still go bankrupt (ie. sell it to someone and possibly buy it back off them in the future or transfer it into another person's name?)

The business is running at a loss at present and does not have much in the way of assets.

I have no house, savings, pension or any personal assets of my own.

All of the debts are personal and not in the business name.

£25,000 of the £70,000 is in my girlfriends name so a joint bankruptcy may be an option.

Any advice would be greatly recieved.

Thanks.

stevy

[MelanieGiles]

Why not try an insolvency practitioner who specialises in self-employed cases. I do a lot of these and generally work out payments on a quarterly rather than monthly basis to take account of peaks and troughs in trading. However, you mention that your business is trading at a loss at present, so it may be difficult for you to demonstrate an appropriate income stream.

There is no such thing as a joint bankruptcy.

If bankruptcy appears to be a better oprion, then there is no guarantee that your business will be closed down.

Regards, Melanie Giles, Insolvency Practitioner for over 20 years.

To have me propose an IVA for you, please visit:
http://www.melaniegiles.com/ivaEnquiry.asp

See customer feedback at:
http://www.iva.com/iva_companies/IVA_Advice_Bureau.asp

[kerrie2]

Hi stevie
just wanted to say that im sorry to herar of your circumstances.
because i could work i started a business from home but had no customers or call i had to cancel down as soon as i got the business started
my reason for starting were that because i couldnt work to try to keep the money coming in it was my best option.but unfortunatly didnt go my way.now i owe around 45k.
Just wanted to wish you all the best and we are all here to advise and support you whatever you decide to do.
ive found this forum helpful and luckly for me have a friend who put me onto this site and is on a dmp.
i dealt with my problem yesterday so im on my way to getting sorted out .
It will be a rocky journey but hopefully will feel happier.
keep your chin up and wish you all the best.
[:)]kerrie x

kerrie kirkham

[stevie26]

Why not try an insolvency practitioner who specialises in self-employed cases. I do a lot of these and generally work out payments on a quarterly rather than monthly basis to take account of peaks and troughs in trading. However, you mention that your business is trading at a loss at present, so it may be difficult for you to demonstrate an appropriate income stream.

There is no such thing as a joint bankruptcy.

If bankruptcy appears to be a better oprion, then there is no guarantee that your business will be closed down.

Regards, Melanie Giles, Insolvency Practitioner for over 20 years.

To have me propose an IVA for you, please visit:
http://www.melaniegiles.com/ivaEnquiry.asp

See customer feedback at:
http://www.iva.com/iva_companies/IVA_Advice_Bureau.asp

Thanks for the advice,

Although I would rather try and work my way out of debt I'm trying to look at all angles and see if there's a better solution. If it meant closing down the business I would rather struggle on than go bankrupt as I know it will come good in the end.

Is there any way of selling the business before going bankrupt and then purchasing it back if I had the funds once the bankruptcy is finished?

Not sure if this would be fraudulent or illegal.

Any suggestions around this would be greatly appreciated.

[MelanieGiles]

So long as the sale and purchase back is at full market value, I cannot see that there would be any problem with this, however who is going to run it for you in the meantime?

Regards, Melanie Giles, Insolvency Practitioner for over 20 years.

To have me propose an IVA for you, please visit:
http://www.melaniegiles.com/ivaEnquiry.asp

See customer feedback at:
http://www.iva.com/iva_companies/IVA_Advice_Bureau.asp