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AMA

I am a bankrupt - AMA

45 replies

cathf · 13/03/2019 16:24

I am undischarged bankrupt. Happy to answer any questions

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alwaysncxx · 13/03/2019 16:25

How much debt did you have?

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Lumene · 13/03/2019 16:26

How did it happen?

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cathf · 13/03/2019 16:26

Thousands. £200,000+ due to business failure

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scandilover · 13/03/2019 16:27

What advice would you give others in debt?

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cathf · 13/03/2019 16:29

I would say take professional advice, but but if BR is your best option, then don't be frightened of it.

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ColeHawlins · 13/03/2019 16:30

Was it as big a relief as I'm imagining?

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WhenZogateSuperworm · 13/03/2019 16:30

Do you feel guilty about whoever you owed money to not receiving it?

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cathf · 13/03/2019 16:36

Cole, it is honestly one of the best things I have ever done.
Whenzo - we were forced into BR by a personal Guarantee on a business loan. The creditor would not negociate and refused an IVA. I get a lot of pleasure from the fact that they are getting a lot less than they would have done if they had accepted our offers.

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sushisuperstar · 13/03/2019 16:41

@cathf they must have been hoping you would have been able to bend to their wishes somehow.

What are the ramifications? Have you just had to start again and find a job job? Did you have to fire staff?

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MistressDeeCee · 13/03/2019 16:45

Were your bank accounts immediately closed and were you allowed utility bills in your name? I've heard that's caused hassle for some bankrupts

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cathf · 13/03/2019 16:45

Ramifications-none so far. Six staff lost their jobs and four have been reemployed by the new owner.
Myself and my husband are working again and enjoying a regular wage - we feel very fortunate and comfortable.

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Hollowvictory · 13/03/2019 16:46

Why did your business fail?
Did you leave creditors or employees unpaid?

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cathf · 13/03/2019 16:48

Our bank account was closed after about 10 weeks but we opened a new one after BR, so were using the new one anyway.
Utilities - our supplier (no debt on the account) wanted to install a prepayment meter but we found a new supplier with no problems.

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Babymamamama · 13/03/2019 16:48

Do you think about the other businesses whose bills you are leaving unpaid?

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cathf · 13/03/2019 16:51

Don't want to go into too much detail about the business as it may be identifying. In a nutshell, underfunding and cash flow.
Yes, we left creditors unpaid. Staff were owed one weeks wages.

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Singlenotsingle · 13/03/2019 16:51

Are there restrictions on what you can do now? And how long will they last? Presumably you wouldn't be able to startup another company?

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cathf · 13/03/2019 16:52

Baby, they were all much bigger businesses than ours. Thinking about them would not have helped us. We had no option.

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Babymamamama · 13/03/2019 16:53

Does this affect your mortgage abilities and credit rating?

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DeadZed · 13/03/2019 16:54

If you are earning a wage now, do you pay anything into your bankruptcy?
Did your DH go bankrupt as well or just you?

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cathf · 13/03/2019 16:54

Some restrictions mainly around obtaining credit, but which we would not want to do anyway.
Restrictions last one year usually.
I would never want my own business again.

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ColeHawlins · 13/03/2019 16:55

I'm glad you escaped in one piece OP.

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cathf · 13/03/2019 16:57

Baby, yes massively. We are unlikely to get any credit for at least six years, but we but we would not want any.

Deadzed, no we have been very lucky and do not have an IPA. Both my husband and I are bankrupt.

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cathf · 13/03/2019 16:58

Thanks Cole!

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Pringlemunchers · 13/03/2019 16:58

Do you own your own home or rent and does this affect this ?

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cathf · 13/03/2019 17:01

We own. This was the only potential issue as we had equity in it. The IP offered a very fair price for this, and our inlaws bought this equity. This has completed today. And I will be forever grateful to them for enabling us to keep our home

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