I’ll start by asking you this question. “Is bankruptcy for you”? Have you seriously thought about going bankrupt? Is there no way out, can you do anything else. At the end of the day if that is what you do, then fine. It’s not the end of the world. Think of it as a new start. Put the past behind you and think of the future. There are pro’s and con’s about going bankrupt. There are a lot of things to think about. I am hoping by the time you read this e book you will feel a lot better about yourself. How do I know that? Well, I was, still am at this moment bankrupt, myself.

How did it all start? It started in October 2006 when my wife and I took on the lease of a Public House from a Pub Co. Initially it was a month to month contract which meant we could walk away or they could cancel our monthly contract. Initially everything going fine, we paid £200 per week rent and bought all our drinks from the Pub Co. We paid cash up front for our orders. After about 4 months they wanted us to sign a contract as soon as possible or they would be putting the “TO LET” sign back outside the pub. We thought that was pretty harsh. After all they were desperate for us to take on this pub. We had under £2000 starting with this venture.

Anyway, we signed a 5 year lease. That meant that from now they took the rent, order money etc direct from our bank account.
Unfortunately, that lasted just a few weeks. The business account started going overdrawn. After consulting my credit controller we were put back onto cash up front. Before our drinks order was released we had to pay and either fax the receipt to the Pub Co head office or scan and e mail. That was every week. Nightmare.

As the weeks and months followed we fell behind in payments to all and sundry. We also had cash flow problems. The money I was earning “today” was going out “tomorrow”. Believe it or not this lasted for about 2 years.
A year after taking on the lease we sold our house to get some capital for the business. Unfortunately, the money we made on the sale of the house disappeared in next to no time. It was a traumatic time, worrying every day. It was that bad that I didn’t answer telephone calls, didn’t open any letters for days on end. I had stopped paying the accountant after only a few months. They were charging £250 per month. I still kept doing the accounts myself. I did them on a spreadsheet and kept tally myself.

I still got the VAT returns quarterly with their estimates which were diabolical. I ignored them to. One of the worst things to happen was the debt letters kept coming by the dozen. They threatened court, shutting down the business and everything else.
At last it came to the fore. We went to the Citizen Advice Bureau for advice, of course. We talked with the Debt Adviser who advised us if that was the way we wanted to go. I gathered all our debt letters, business and personal. We made another appointment to see our adviser.

All the paperwork was left with the adviser. After a week or so we were back. As we were partners in the business we still had to go bankrupt separately. He had filled in the necessary forms which we signed. I then went to a bank and paid £100 each, the fee required, received a receipt and placed in the envelope with the desired paperwork and posted it off to the Accountant in Bankruptcy. Within a matter of weeks we were declared bankrupt.


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