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Has anyone had to go bankrupt and what did it involve?

(5 Posts)
Bobby2013 Thu 05-May-16 16:53:31

Asking on behalf of my sister, who is not on Mumsnet. She took out a business loan, and has a couple of credit cards, to fund her dream of becoming a wedding photographer. However, she didn't factor in the amount of competition out there, and business has not been as she hoped. If she doesn't make it through the summer, she fears having to go bankrupt. So, has anyone gone through this process and has any advice? Thank you!

IceMaiden73 Thu 05-May-16 16:58:12

Has she looked at an IVA instead?

What does she have in the way of assets?

She should get a free initial appointment with an insolvency practitioner

iklboo Thu 05-May-16 17:08:58

Call the Insolvency Service (she'll have a local Official Receiver) and ask them to send her the information pack. She'll probably be able to get the info off their website as well.

A lot will depend on whether she has assets, whether she owns her own home and there's equity in it etc.

cloverlight Fri 06-May-16 08:37:52

I went bankrupt a couple of years ago. I filled in a form, went to court to file it and then was declared bankrupt that afternoon. These days it's all done online so even easier. I didn't have to call anyone or attend appointments, but I got free advice from the Stepchange charity, which I'd highly recommend. Business debts are treated differently from individual debts in some cases I think, and there are different organisations that help.

I didn't have anything in the way of assets, so they weren't able to seize anything (they don't take normal household goods, just things like house/car/antiques). It didn't affect my banking (kept a basic bank account with debit card, online banking, but no overdraft). And as my income was low I didn't have to make any further repayments, and was discharged without further action after a year. I've already started repairing my credit with a credit rebuilding card (always repaid in full monthly).

Bobby2013 Mon 09-May-16 22:22:14

Thank you - she doesn't own her own home, her car is pretty old. She is concerned they will take her equipment, as that's her only means of income, however small, understandably she doesn't want to lose that. Cheers for all your advice!

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