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Topic starter
24/05/2013 4:08 pm
My partner's sister has been trying to run a business with her husband for a number of years but it has gone from bad to worse. Her marriage is also ending and she is faced with moving back in with her parents with a 1 year old. Her level of debt seems to be pretty large (although I don't know the exact figures) and servicing her debts seems to be done in no small part by using credit cards and overdrafts. The business is going to close any day now and she will have no income.
Knowing that I am in a TD, she asked for my opinion. I suggested that she will probably be looking at sequestration but that she should contact one of the firms on here as I'm no expert and they give out great advice. She has told me this afternoon that the company she contacted has said no insolvency firm will touch her and that she should go to CAB and 'pay the fee herself'.
What circumstances would lead to an insolvency firm not wanting to wotk with a debtor, and does anyone know what fee she is talking about? She now seems to be of the opinion that she will just try and slug on rather than seek any further help which is only going to make matters worse as the debt continues to mount.
Glad that's over with....
24/05/2013 4:21 pm
HI ITS POSSIBLE TO DECLARE TOURSELF BANKRUPT WITHOUT USING AN INSOLVENCY PRACTITIONER IF NO ONE WILL HELP HER . TELL HER TO CONTACT THE AIB DIRECT THEY ARE BASED IN AYRSHIRE AND HAVE A WEBSITE WHERE SHE CAN GET THE NUMBER
Topic starter
24/05/2013 4:25 pm
I take it she's looking at LILA sequestration then? She has no assets and will have absolutely no income once the business finally fails. I've read on here that there is a £200 fee for the application to AIB but have also read elsewhere that there will be additional court costs. Is that the case, and if so, what are the costs likely to be in the region of?
Glad that's over with....
24/05/2013 4:32 pm
I BELIEVE THE FEE IS SUPPOSED TO BE INCREASING BUT DONT KNOW WHEN . I WAS ON BENEFITS WITH NO EQUITY IN MY HOME AND DIDNT HAVE TO PAY A CONTRIBUTION EACH MONTH AND WAS DISCHARGED AFTER A YEAR WITH NO FEES TO PAY APART FROM £200 AT THE START ALTHOUGH IF SHE GETS ANOTHER JOB BEFORE THE YEAR IS UP SHE WOULD THEN NEED TO MAKE CONTRIBUTIONS DEPENDANT ON INCOME
24/05/2013 4:37 pm
Hi upstream.
There are two routes to becoming bankrupt.
The first involves appointing a trustee yourself. That insolvency practitioner will need to recover the costs of managing that case and their fees from contributions funded by the debtor. These could come from surplus income and/or the sale of assets.
If there is no surplus income or potential to dispose of assets an IP would experience significant costs handling the case that they couldn't recover. As commercial operators that's obviously not a scenario they'd welcome.
The second route is to apply to the AIB yourself. They'll appoint a trustee and pay them for their work under a contract that they have with a few firms.
Either way you'd have to pay the £200 application fee yourself.
If your friend wants help with an application (possibly LILA or possibly through the issue of a certificate for sequestration) the money advisers at the local CAB or Local Authority should be able to assist.
There's really no reason not to address the debts simply because she isn't in a position to appoint a trustee herself.
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Topic starter
24/05/2013 4:37 pm
Thanks for that. I'll give her this info in the hope she still sees there is a way out!
Glad that's over with....
24/05/2013 5:34 pm
Just to clarify, there are no "additional court costs" as previously mentioned. Applying for your own bankruptcy does not involve the court at all these days. There is just the £200 application fee and then any contribution that it is deemed can be made (which will be zero if the person is not earning).
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