Anyone been through bankruptcy, how bad is it?

[Confuzzeled]

So on the edge with our business and we can't see a way out this time. If we loose it, we're going to loose everything. We owe to the bank and HMRC as well.

Can anyone tell me what'll happen, how long it'll all take before we can get back some kind of life?

start here <a class="break-all" href="http://www.insolvency.gov.uk/" rel="nofollow" target="_blank">www.insolvency.gov.uk/ - dont pay anyone for advice you can get freely elsewhere - eg CAB

all the best

I haven't been bankrupt but have loaned money to people who have (I used to work for a credit union).

In a personal bankruptcy, your personal assets and liabilites are taken over by the Official Receiver under a bankruptcy order granted by the court when you are declared bankrupt. The Official Receiver pays the creditors out of your assets - you no longer have any power over your financial affairs and cannot and must not deal with your creditors personally. A long as you strictly comply with the instructions of the bankruptcy order and what the Official Receiver tells you to do then you should be discarged after about a year.

Its more complicated if you have a Ltd company as the firm will have to be wound up. Most importantly, if you are Directors, do not operate the company insolvently or you may be personally liable for its debts and most especially to HMRC. You may even be subject to criminal fraud charges depending on the circumstances.

Personal bankruptcy will damage your credit record but you can start applying for loans and other forms of credit after you have been discharged so its not a life sentence.

Totally agree with Duffy. Do not ever pay for personal bankruptcy advice. CAB are very good and the court and Official Receiver will help you fil in the forms or you can do it yourself. Here is alink to the CAB bankruptcy advice pages.

Most importantly, even in bankruptcy, you are allowed a reasonable amount to live n and you are allowed to keep some personal assets. The Official Receiver will not make you destitute.