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Hi I've decided to post here after watching Scott from money nerd for advise.
I will be as detailed as possible but I'm am considering filling for a IVA or bankruptcy
at the start of Covid like many others I sat indoors looking after my children while my wife a nurse worked. 11 weeks I was off only reason my wife didn't quit her job and me continue to work was because bojo promised self employed grants. in hindsight my wage at the time would have covered all the bill hers didn't.
You guessed it I was denied the grant after taking myself into 11+ weeks of debt, universal credit was then applied for, no backdate offered, this debt forced myself and wife to separate households as I had a flat with 3months of debt, and we needed a bigger space with the arrival of our 2nd child and I couldn't give the flat back with the debt on it. (in hindsight I should have) and universal credit was starting to help with rent and arrears
having secured a work contract worth 270k pre Covid to start a few months after lockdown ended, I didn't care about the debt as I knew I would be able to pay it off once the job started. the due date to start was 3months turned into 4 months then the contract started after some delays, although we completed the job, with the rise in rates as the job was priced pre Covid the company made a minor profit (more about this later) so 4 months turned into 12months with the job making 10k profit I had to fold the company and personally got no money from the job.
I started another company with the person I did said job above with as despite the profit, it went well and we was offer more work and had other jobs coming in and jobs from our old existing companies.
Recap 12months debt, zero income (universal credit helping with rent and arrears) freedom on the horizon.
another 6months passed and still no money was really coming in, I was working everyday someday the company wasn't even able to cover my costs to go to work, (now before the mug comments) I had no reason to not trust my business partner we had worked side by side for several years, and 90 day payments plus isn't unheard off in my industry, but I started to question why haven't they paid, why haven't they paid.
The penny dropped, all these jobs where being paid into his old company. (taking me for about 65k) and no one to chase as he folded that LTD company (at this time I was defeated depressed suicidal) the repossession had taken place on my flat, as I needed to be self employed to file for any dividends, universal credit placed me on something called gainfully self employed, thus removing any assistance I was getting from my payee wage.
I'm 18 months in debt and homeless at this point. and spent 2 weeks in bed at my wife's house. (Her mentioning today "I wasn't sure if I was to come home to find you dead") I'm still not in the best of places.
I then got approached by a friend in the same field of work, struggling with his company, a new 50/50 partnership although not on paper as I wanted to settle my debts. (was worried about my van and other personal credit) and being made bankrupt.
In the last 12 months we have turned the company from 2 employees to 5 and looking for a very profitable future, he was brilliant with the work side of the business, I knew the business side and work like the back of my hand, so I pulled it apart put it back together. and its running smooth, although anyone in business knows a start up is a labour of love, you don't or cant pull of a wage, until every kink is ironed out so it doesn't fail as a small set back.
like the set back Jan 2023, had to replace a van, and our accountant left 22k of expenses off out vat bill and responded its ok we can claim it back next quarter, doesn't help cash flow now. this has pushed back the expected date we can start pulling of a wage.
brings to to current days, debt from the flat when I was off from Covid, ccjs from a few creditors, and Friday 13.02.23 high court reposed my van, so debt from that.
I'm in a position with crippling debt, bailiffs at the door and emails daily, and now nothing holding me to keeping that debt, the only reason I haven't done anything sooner as the way out was always just a few months away, months turned to a year now two, taking a substantial wage from the business to repay debts just isn't possible, especially now I don't have a van and our ability to carry out work has dropped by 1/4th
I owe family money that helped me not knowing I was screwed over ( I haven't told them what happened to the business just say yeah its fine) fell like a mug, how are you meant to tell someone I haven't been ignoring you living the life of luxury, I have had a life saving amount of money legally stolen from me, this is affecting relationships with said members.
I will answer back to the best of my knowledge but have been as detailed as possible, I need help
my current mindset
A. bankrupt ( I know about directors and bankruptcy and its something that I know I need to consider) and use any money to repair family and debts not covered
B.IVA (not even sure if I can hold up payments currently, any hiccup with the business my wage goes)
C. just run away ( better to be in a shit place alone then dragging family down)
D. cowards way out. (hove honestly considered this for months, its more then just debt I'm dealing with, everything's fixed, selfishly just for me )
my current debt isn't even that much 30k (creditors 20k family 10k) but is currently un-dentable
I have 2 good friends I speak to (knowing about options A-C) my wife knows A-B suspects D)
It was her saying today "I wasn't sure if I was to come home to find you dead" and me saying "I wouldn't do it at home in-case the kids found me" then having to lie and say it was a joke
any advice would be helpful and if you read this Scott from money nerd, thankyou for the video you posted. apologies for the bad grammar and hard read you've endured
I will be as detailed as possible but I'm am considering filling for a IVA or bankruptcy
at the start of Covid like many others I sat indoors looking after my children while my wife a nurse worked. 11 weeks I was off only reason my wife didn't quit her job and me continue to work was because bojo promised self employed grants. in hindsight my wage at the time would have covered all the bill hers didn't.
You guessed it I was denied the grant after taking myself into 11+ weeks of debt, universal credit was then applied for, no backdate offered, this debt forced myself and wife to separate households as I had a flat with 3months of debt, and we needed a bigger space with the arrival of our 2nd child and I couldn't give the flat back with the debt on it. (in hindsight I should have) and universal credit was starting to help with rent and arrears
having secured a work contract worth 270k pre Covid to start a few months after lockdown ended, I didn't care about the debt as I knew I would be able to pay it off once the job started. the due date to start was 3months turned into 4 months then the contract started after some delays, although we completed the job, with the rise in rates as the job was priced pre Covid the company made a minor profit (more about this later) so 4 months turned into 12months with the job making 10k profit I had to fold the company and personally got no money from the job.
I started another company with the person I did said job above with as despite the profit, it went well and we was offer more work and had other jobs coming in and jobs from our old existing companies.
Recap 12months debt, zero income (universal credit helping with rent and arrears) freedom on the horizon.
another 6months passed and still no money was really coming in, I was working everyday someday the company wasn't even able to cover my costs to go to work, (now before the mug comments) I had no reason to not trust my business partner we had worked side by side for several years, and 90 day payments plus isn't unheard off in my industry, but I started to question why haven't they paid, why haven't they paid.
The penny dropped, all these jobs where being paid into his old company. (taking me for about 65k) and no one to chase as he folded that LTD company (at this time I was defeated depressed suicidal) the repossession had taken place on my flat, as I needed to be self employed to file for any dividends, universal credit placed me on something called gainfully self employed, thus removing any assistance I was getting from my payee wage.
I'm 18 months in debt and homeless at this point. and spent 2 weeks in bed at my wife's house. (Her mentioning today "I wasn't sure if I was to come home to find you dead") I'm still not in the best of places.
I then got approached by a friend in the same field of work, struggling with his company, a new 50/50 partnership although not on paper as I wanted to settle my debts. (was worried about my van and other personal credit) and being made bankrupt.
In the last 12 months we have turned the company from 2 employees to 5 and looking for a very profitable future, he was brilliant with the work side of the business, I knew the business side and work like the back of my hand, so I pulled it apart put it back together. and its running smooth, although anyone in business knows a start up is a labour of love, you don't or cant pull of a wage, until every kink is ironed out so it doesn't fail as a small set back.
like the set back Jan 2023, had to replace a van, and our accountant left 22k of expenses off out vat bill and responded its ok we can claim it back next quarter, doesn't help cash flow now. this has pushed back the expected date we can start pulling of a wage.
brings to to current days, debt from the flat when I was off from Covid, ccjs from a few creditors, and Friday 13.02.23 high court reposed my van, so debt from that.
I'm in a position with crippling debt, bailiffs at the door and emails daily, and now nothing holding me to keeping that debt, the only reason I haven't done anything sooner as the way out was always just a few months away, months turned to a year now two, taking a substantial wage from the business to repay debts just isn't possible, especially now I don't have a van and our ability to carry out work has dropped by 1/4th
I owe family money that helped me not knowing I was screwed over ( I haven't told them what happened to the business just say yeah its fine) fell like a mug, how are you meant to tell someone I haven't been ignoring you living the life of luxury, I have had a life saving amount of money legally stolen from me, this is affecting relationships with said members.
I will answer back to the best of my knowledge but have been as detailed as possible, I need help
my current mindset
A. bankrupt ( I know about directors and bankruptcy and its something that I know I need to consider) and use any money to repair family and debts not covered
B.IVA (not even sure if I can hold up payments currently, any hiccup with the business my wage goes)
C. just run away ( better to be in a shit place alone then dragging family down)
D. cowards way out. (hove honestly considered this for months, its more then just debt I'm dealing with, everything's fixed, selfishly just for me )
my current debt isn't even that much 30k (creditors 20k family 10k) but is currently un-dentable
I have 2 good friends I speak to (knowing about options A-C) my wife knows A-B suspects D)
It was her saying today "I wasn't sure if I was to come home to find you dead" and me saying "I wouldn't do it at home in-case the kids found me" then having to lie and say it was a joke
any advice would be helpful and if you read this Scott from money nerd, thankyou for the video you posted. apologies for the bad grammar and hard read you've endured
