just wonderd !!!!

Not to be entered into lightly. Why do you ask

well you may well ask, but in a spot of bother moneywise, house, bank, earning ect….

Have a look at IVA's as they are far less restrictive than bankruptcy.

Agreed. Bankruptcy should be an absolute last resort. I can't be bothered to type all the details so look here for good advice

thanks guys and silverpigeon thanks for the link very helpfull, just spent a while reading it and its looking like the only way to go at the moment, as in the fact i'm not working at the moment, me and the missus are on the verge of splitting up and i have a pile of bills and demands longer than my arm, looking at iva's i dont think thats an option as the amount of money were talking about is exsesive to say the least

bear in mind that although its not to be entered into lightly, many of the most successful entrepreneurs in the country have been there and done that. it can be a springboard to better things if you have the right attitude and ideas.

Suggest also visiting your local Citizens Advice Bureau or Debt Advice Centre who will also provide you with free advice about the options.

Too easy

I don't think the amount owed being 'excessive' would stop you getting an IVA.

talk to someone..these are supposed to be good…Consumer Credit Council

Also, it might be worth posting on the bankruptcy/IVA forums here at moneysaving expert. No metter how bad the situation in which you're finding yourself, someone there will have been worse. I suspect, despite the wealth of knowledge on STW, there might be people there who know more. I think there's also a section where you can ask a CCCS counsellor a question. Best of luck and keep acting on it.

Another vote for consumer credit counselling service here.
They were very helpful to me in a difficult time.They are difficult to get hold of though,so be persistent.Do something about the situation sooner rather than later would be my advice.
Colin

IVA Forum

Very useful place full of people in your similar situation. IVA is useful if you have assets to protect, such as a house. Usually not allowed if one creditor has over 75% of the debt, as they would have the voting rights. Takes 5 years to pay off, plus an equity release in the last year.

If an IVA wont work, or you have no assets worth protecting then BR will be an option. Clean slate after 12 months (generally). You may have to contribute a monthly allowance from your income depending upon how much money the Official Receiver says you have left after your income and expenditure is calculated. The allowances in BR are much less oppressive than in an IVA though.

If you have no assets, go BR IMO.

Bankruptcy Forum

Both those links will get you to ppl in your situation and also Insolvency Practitioners who will generally give free advise there.

Your credit rating will be shot for 6 years either way. In BR, the OR will freeze your bank account, usually for a few days, so be aware of that happening as your Direct Debits could be affected.

Best of luck.

Visit Citizen Advice Bureau. I began the process a couple of weeks ago. They are very good and actually do more than just advise you. You'll probably need an initial visit and then a second more in depth appointment.

Recommended.

Loads of good advice on here too…

http://forums.moneysavingexpert.com/forumdisplay.html?f=136

…you'll get very quick and sensible answers to anything you want to ask.

Have a look at IVA's as they are far less restrictive than bankruptcy.

Not necessarily, the spending allowances with an IPA/IPO under bankruptcy are far less restrictive than an IVA and actually allow you to rebuild your life rather than crippling you for 5 years. And an IVA still stays on your credit file for 6 years, so there is no benefit over bankruptcy on that front.

It is a last resort though – but when we closed our family business I had to go bankrupt in January and its been the best move I ever made.

To second what the others have said though, get professional advice first!

Too easy

Been through it yourself have you?

IIrc it was the enterprise act that made it easier or less stigmatic to go bump…it used to be six years of being labelled a complete twunt now it can be as little as 3 to 4 months for simple cases of not enough money to meet your liabilities…providing you haven't run up 20 k on the old columbian marching powder…hookers ,or a punt on the gee gee's

as for the stigma attached as someone above pointed out there are a fair few successful buisnesmen that have been bankrupt or at least used the legality of bankruptcy (playing the system)to make sure whats under the bed can be put to use later …..my other half deals with things like this and some of the stories (cases) make you wonder how people actually grew balls big enough to do some of it

some consider a year of having to live and die by what the Official reciever a godsend (just make sure on paper your outgoings and earnings after you have submitted your paperwork mean you have nothing left extra)

this can result in a Undertaking to provide a certain element of your future earnings for up to 3 years back to the official receiver or with an IVA struggling for 5 years paying off the debt …depends where you are and what you think about paying off what you owe..but if your struggling to pay your creditors then chances are you have a default or something on your credit file so a BR order isn't going to change the fact that in this day and age a blemish means slim chance of getting anything from anyone..

im not going to say i would jump on it but if it came to it an the chips were down and i had no assets i wouldn't lose any sleep over getting the banks to add a bit more onto their tax write off for the year.and sticking my two fingers up ..they win either way.

Can i just pick up on something that lowry said about a clean slate after a year.

This is not strictly true. Where as you may be discharged from bankrupcy after a year, or how ever long is decided the order will last for, and so can start to borrow money again (during bankrupcy you can only borrow small amounts, max £500 IIRC) lenders always ask if you have ever been made bankrupt and failure to disclose this is fraud. The more time that passes from when you were discharged from the bankrupcy the more lenders will lend to you and the cheaper the rates will become (assuming no further credit problems arrise) but it always has to be declared and will affect the interest rates that lenders charge you as you will be seen as an increased risk to them.

Just wanted to clarify for you.

As others have said seek advise, try to avoid these IVA companies as they will take a cut of what you pay each month and so that extends the period of time it takes you to pay off the IVA. Try to approach your creditors directly and see what they can do to help you, explain your situation to them, you may be surprised how flexible they can be given that they would normally rather you pay them a reduced amount till you are back on your feet than nothing at all.

Last of all, good luck with it.

Go to the CAB or other similar body.

They will in turn put you in touch with a company that specialises in insolvency, who will then advise you on what you should do.

If you have a large amount of debt they will probably suggest an IVA or Protected Trust Deed in Scotland. This involves asking your creditors to agree to a reduced payment for a set amount of time. The majority of the creditors have to agree to this for it to happen and they only have a limited time in which to respond or their agreement in assumed. If they dont agree to it this triggers bankruptcy proceedings…

You wont lose your house unless you dont pay the mortgage. You should be able to keep a car and they dont really care about the smaller stuff.

It isn't a painful process and is much better than struggling to pay debts that you can no longer afford.

I went bankrupt last year when my business went tits up.

I kept the house, car and everything else, I am allowed to be self employed and I pay only a small monthly contribution. I'm better off for having gone through it.

so what about the people owed money? they get nothing or a few pence in the pound. while bankruptcy allows you to 'wipe the slate clean'

MrSmith – A cold as it sounds I don't really care about them. If it hadn't been for the banks pulling the rug out from under my customers I wouldn't have gone under.

goan did you go bankrupt personally or did the buisness go bankrupt

It was set up as being self employed so it was personal bankruptcy.

Just to add to what others have said, you'll get good advice and support from the Moneysavingsexpert forum.

As for an IVA you cannot enter one if you do not have a perm job as I found out earlier in the year 🙁 so BR maybe a better clean state approach, as well as living expenses being more favourable during BR than an IVA.

You'll get negative comments/responses from some people who haven't been through it, as some people think its the easy way out. So it maybe best to stick to the Bankruptcy specific forums or possibly PM/email people directly (email in profile if you needed)

Not been through it but I know of several business associates who have. Not a pleasant experience from their recounts and all of them feel a sense of guilt at having let people down. I’ve never met anyone yet who has been bankrupt and couldn’t care less about them people they have defaulted on but then again I tend to deal with people with strong business ethics.

It can affect many people quite deeply and they continue to feel a sense of shame and failure for many years after.

It certainly isn't the easy way out if you have any morals.