# Business Bad Debts / Revenue Sheriff - How to Sort?



## edwardm (9 Oct 2008)

Hi All, 

Looking for some advice on getting the following sorted, or at least in a format that will allow me to sort / pay:

Had a sole trader business that went belly up about 2 years ago. 
One of the main problems was that i was not willing to accpect that the business was infact failing, and used revenue, banks & suppliers (30/60 days credit) to fund the failing business.

It got to the stage where i eventally sold the lease, (for not a lot) and moved out of the premises.

The business wound up oweing around 75,000 in total across about 10 different firms / companies/ Banks, including about 40,000 due to Revenue for Vat / PAYE etc.

I've been surviving it sofar by paying off creditors bit by bit, installment orders etc.

I have defaulted on a number of these agreements also, and are now trying to deal with the revenue sherrif (who has added 20,000 in intrest & fee's to the bill)

There is no chance of me getting bank loan etc as my credit history is completely shot, so i guess my question boils down to how will / can revenue enforce / presue me for the 60,000?
*Any if i give all of my disposable income to revenue, how am i supposed to service the other loans etc?*

Any ideas any one??

ps, no assets of any sort, even sold my car a few months ago,


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## johnjoda (9 Oct 2008)

Hi sorry to hear of your predicament, it may be that bankruptcy may be the way forward. get free advice from , good luck


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## bond-007 (9 Oct 2008)

In fact it may be the only way forward. Again I am sorry to hear of your problem.


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## edwardm (20 Oct 2008)

Hi all, 

Thanks for the replies, but only 2 replies?? Think should i have posted in the ask about business fourm? Can one of the mods move it to there if i ask?

Or is Bankrupt the one & only way forward??


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## willalex (21 Oct 2008)

johnjoda said:


> Hi sorry to hear of your predicament, it may be that bankruptcy may be the way forward. get free advice from , good luck



 I have a friend in a similar position.  The main problem I think was not forming a limited company with limited liablities.

I have spoked to him about declaring bankrupt but he thinks this option will leave him ruined for future years and trying to start up again.  He is facing 10/15 years of hardship making small repayments. The Sheriff is constantly harrassing him.  He did have the house on the market but MABS told him to take it off the market since the proceeds would be claimed by Financial Cos & Revenue leaving him homeless.

What are the pros and cons of bankruptcy ?


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## bond-007 (21 Oct 2008)

Pros:
Stops the sheriff and creditors persuing you in the courts.
Keeps you out of jail.
Debts are gone in a definite time period. 

Cons:
You can't be a director of a company or hold public office.
Takes a long time to clear, up to 12 years.
Court may sell your house. 
You will never get credit again.


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## willalex (21 Oct 2008)

bond-007 said:


> Pros:
> Stops the sheriff and creditors persuing you in the courts.
> Keeps you out of jail.
> Debts are gone in a definite time period.
> ...



Thanks.  I can see why it's a tough decision for him.


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## bond-007 (21 Oct 2008)

It really is a nuclear option. 

The banks won't bankrupt a person because they will ultimately get very little or nothing out of it. They prefer to use instalment orders and threats of prison to eek out what they can. 

Debtors don't often use bankruptcy as it is a costly remedy but sadly it is often the only way to stop creditors from harassing debtors that cannot pay. Few people are aware of the procedures that exist.


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## edwardm (21 Oct 2008)

Is it ture that one cannot apply to be made bankrupt, that a creditor needs to apply to have that done?


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## bond-007 (21 Oct 2008)

Yes, you can apply to be made bankrupt. You need assets of at least €1935 in order to apply to the High Court for a judgement of bankruptcy. There are costs of 650 euro which need to be paid also to the court. 

Read [broken link removed]. It explains everything.


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