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Being sued-might have to go bankrupt

Being sued-might have to go bankrupt

Postby hardlesson » Mon Nov 11, 2013 1:35 pm

I am being sued by a contractor who racked up outrageous debts in a very short space of time and we are now at the point where a judge will decide which court the case is heard in. I am contesting a large part of the supposed debt and hope it will be heard in the small claims court.
My company has been hit hard by the recession and is strugling to stay afloat.
My question is-if there is a judgement against me and I then go bankrupt, can I be sued or chased again in the future for the same debt if I ever managed to build up another business?
Is there any advantage to going bankrupt now, before the court case commences?
Thanks in advance
L
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Re: Being sued-might have to go bankrupt

Postby atticus » Mon Nov 11, 2013 1:54 pm

That is a very clear request for advice. We have a "no advice" rule.

My advice: take professional advice.

DO NOT TOUCH A DEBT MANAGEMENT COMPANY WITH A BARGEPOLE.

Consult a solicitor or a Licenced Insolvency Practitioner, or failing that a debt advisor at the Citizens Advice Bureau.
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Re: Being sued-might have to go bankrupt

Postby steepcurve » Mon Nov 11, 2013 1:59 pm

Whoops sorry! Didnt read the rules properly.
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Re: Being sued-might have to go bankrupt

Postby zebedee » Mon Nov 11, 2013 4:56 pm

I wouldn't over worry, frankly. Let them make you bankrupt if they want. It'll cost them rather than you and you'll be out after a year and can start again and "No" they won't be able to come after you. Our citizen-friendly government has made it all a doddle these days - like popping a pill. Anyone can escape from debt. You could of course enter an IVA but that will cost you as it's another form of debt management. It might be worth doing if the amount your creditors agree to you paying is negligible, like 1p in the pound.

If you have assets you want to think about salting away what you can now otherwise the Official Solicitor will be after them. That's not playing to the rules, mind, but I imagine nearly everyone does it. It's the only way to survive these days, what with Vat at 20% and most people being skint after watching too many Wonga ads.
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Re: Being sued-might have to go bankrupt

Postby dls » Mon Nov 11, 2013 7:47 pm

Bankruptcy exists to protect you - to put behind you the dread of every postal delivery and telephone call.

Atticus does not descent to capital letters very often. He is absolutely right. Get direct advice - each person's situation differs, and the differences can matter. Above all stay clear of debt management companies.
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Re: Being sued-might have to go bankrupt

Postby blig » Mon Nov 11, 2013 9:04 pm

Is there any advantage to going bankrupt now, before the court case commences?


I struggle to see that this is action you should consider at this point, given you dispute the claim.
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Re: Being sued-might have to go bankrupt

Postby superbird440 » Mon Nov 11, 2013 10:29 pm

Again, I would also say seek advice because as already pointed out, every one is different. There is no straight forward answer.
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Re: Being sued-might have to go bankrupt

Postby landlordnightmare » Wed Nov 13, 2013 2:37 am

dls wrote:Bankruptcy exists to protect you - to put behind you the dread of every postal delivery and telephone call.



Sorry I really did not want to login but you really did wind me up - sorry...

So it exists to 'protect you'? but f**k your creditors??

Don't try it twice within 5 years.
Note: I am not legally qualified, just been around a few blocks. The sorry cynic.
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Re: Being sued-might have to go bankrupt

Postby atticus » Wed Nov 13, 2013 6:25 am

If you are insolvent, there is not enough money to go around. Your creditors are not in a happy position.
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Re: Being sued-might have to go bankrupt

Postby cbcbcb » Wed Nov 13, 2013 10:24 am

landlordnightmare wrote:
dls wrote:Bankruptcy exists to protect you - to put behind you the dread of every postal delivery and telephone call.



Sorry I really did not want to login but you really did wind me up - sorry...

So it exists to 'protect you'? but f**k your creditors??

Don't try it twice within 5 years.



Creditors are in business. It's a normal risk in business, not being paid .

Risk management. For the business.


Plenty of folks have topped themselves over money lost/ creditors pursuing them, leaving behind wife and kids. For money worries ? It's not worth ending a life over is it ?

Hence the protection ?

Is any business worth saving over the cost of one life ?

What would you choose ? Take the life and keep the biz, or take the loss, and try best to mitigate those business risks in future ?
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