Declare bankruptcy or become insolvent? Advice needed please.

gordieboy04

Hi all.

I've finally reached decision time and I badly need some impartial knowledgable advice so I can decide where to go from here.

A little about me first. I'm a mid thirties married man with a one year old child. I'm currently in employment in an average job (that I actually really enjoy) taking home a wage of approx 450 euro a week after all taxes usc etc are paid. My wife is unable to work at present due to a medical condition and us getting a welfare payment of approx 200 per week although she is hoping to return to work in the near future.

My situation is as follows. In 2005 I set up as a sole trader, after a great first year in 2006 I bought some machinery on finance and I also got a 100 percent mortgage on a house which was and still is my main and only residence. In early 2008 things started going downhill and I tried to keep my business going for the next two years doing whatever I could spending 100 hours a week away working but the work just wasn't there so in 2011 I has to pack it all in and thankfully I was lucky enough to get this job in in now.

I have approx 4000 euro savings and absolutely no assets.

Here's a rough breakdown of what I owe.
Finance company - 70000
Credit union - 12500
Bank overdraft ( now a personal loan) 6000
Revenue sheriff - 8000
I have agreements with these at the minute that I've had for the past few years paying off very small amounts per week that means if I lived to be 100 I still wouldn't have them paid off all apart from the sherriff il have him paid in 3 more years. The big one is my mortgage. I owe 207000 on a house I paid 205000 for and that is now worth 95000. Up until April this year I was paying as much per month as I could but in April I decided I couldnt keep throwing that money into a bottomless oit and I needed to try and save some so when today came at least id have enough gathered up to file for bankruptcy or insolvency and also have a months rent so my family wouldn't have to suffer.

Today I got a letter saying I have ten days to vacate my house or pay the balance of what I owe or come to an agreement in writing.

I need to provide somewhere safe and warm for my wife and child to live and put food on the table for the rest of mine and their lives that's my main priority. The house we are in has been home for the past 7 years but its not particularly special. I'd love to find some way to keep it but its not that important.

I knew this day was coming but now it's here I don't know which way to turn. I need to close this chapter of my life and start a new one some way. I want to be able to buy my baby a new coat if she needs one and not have her suffering because of bad decisions I made years ago. I know all the moral arguments that can be made saying I should pay what i owe and believe me I really have tried but short of winning the lotto that will never happen now so I need to start new and I've ten days to do it. Sorry for the long winded story I hope someone will be able to point me in the right direction. Thanks.

Ps not sure where to post so I'm in wrong forum my apologies

Pat Mustard

I suggest that you talk to a PIP.

MABS offers free advice, afaik. Maybe start there first, actually.

gordieboy04

Thanks for your reply. I've already been with a pip a few weeks ago and to apply for insolvency will cost 1000 euro up front to the pip and 500 to apply. Both are non refundable if my application are denied. In my eyes the pip has no incentive to find the best solution for me because he gets his 1000 regardless that's why I was looking for some advice from people with nothing to gain or lose. Thanks

godtabh

my advice would be not to listen to any one here and speak to a professional. It may cost you money but at the end of the way you are paying for peace of mind

hullaballoo

OP, you might note the comments that have not been deleted. In your situation, you need professional advice, which we cannot give you here.

There is no more useful information that can be added at this point so the thread has been closed.