Closed my business... now facing 22K debt 😞

UK Bankruptcy Law Forum
1

Hey everyone, I recently had to shut down my sole trader business and now I’m stuck with debts up to £22,000, including VAT and Inland Revenue. Not keen on going bankrupt, but not sure what else to do. Any advice?

2

Sorry to hear that. Have you looked into debt management plans? They might help without going bankrupt.

3

Aeron said:
Sorry to hear that. Have you looked into debt management plans? They might help without going bankrupt.

Thanks, DEF. Not sure what a debt management plan is… can you explain?

4

@Kieran
Sure! It’s an agreement with creditors to pay off debts over time. Might be worth checking out.

5

I was in a similar spot. Spoke to a financial advisor and they helped me find alternatives to bankruptcy.

6

AVERY said:
I was in a similar spot. Spoke to a financial advisor and they helped me find alternatives to bankruptcy.

Appreciate it, GHI. Did it cost much to get that advice?

7

Kieran said:

AVERY said:
I was in a similar spot. Spoke to a financial advisor and they helped me find alternatives to bankruptcy.

Appreciate it, GHI. Did it cost much to get that advice?

Some advisors offer free initial consultations. Worth asking around.

8

Hey, have you considered an Individual Voluntary Arrangement (IVA)? It’s a formal alternative to bankruptcy.

9

Jesse said:
Hey, have you considered an Individual Voluntary Arrangement (IVA)? It’s a formal alternative to bankruptcy.

Thanks, JKL. Not familiar with IVAs… how do they work?

10

Kieran said:

Jesse said:
Hey, have you considered an Individual Voluntary Arrangement (IVA)? It’s a formal alternative to bankruptcy.

Thanks, JKL. Not familiar with IVAs… how do they work?

It’s a legal agreement to pay back debts over time. You’d need to speak to an insolvency practitioner about it.

11

Before deciding, check out the government’s guide to bankruptcy. It explains the process and alternatives.

12

Franklin said:
Before deciding, check out the government’s guide to bankruptcy. It explains the process and alternatives.

Good idea, MNO. I’ll have a read through that guide.

13

Kieran said:

Franklin said:
Before deciding, check out the government’s guide to bankruptcy. It explains the process and alternatives.

Good idea, MNO. I’ll have a read through that guide.

Here’s the link: Guide to Bankruptcy - GOV.UK

14

I went through bankruptcy last year. It was tough, but sometimes it’s the best option. Make sure to get professional advice.

15

Paden said:
I went through bankruptcy last year. It was tough, but sometimes it’s the best option. Make sure to get professional advice.

Thanks for sharing, PQR. How long did the process take for you?

16

@Kieran
It took about a year to be discharged. Felt like forever, but it was a relief in the end.