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| Burntfingers |
Posted - 28 February 2010 : 20:42:08
I live with my partner who is also my employer. The business she runs is in a bit of trouble and she has nearly £100,000 of credit card debt that is way out of control. So basically we are in a mess. We have shared a home for the past 10 years but the mortgage is in her name. I borrowed the £10,000 deposit for the home from my Dad. The house is valued at around £235,000 and the interest only mortgage is for £195,000, so there is a bit of equity left. I think the business will need some serious ajustments if it is to survive. Will we have any way of keeping the equity on our home if she files for bankruptcy? and have you any advice for me as to how to handle this difficult problem? |
| 5 L A T E S T R E P L I E S (Newest First) |
| Richard P |
Posted - 01 March 2010 : 19:54:48
burnt fingers
good luck on the path ahead to both of you.
you need to take positive solid steps now before a creditor does something to the company or puts a further charge on the property.
again good luck Richard |
| Burntfingers |
Posted - 01 March 2010 : 19:14:13
Thanks for the replies so far.
In response to Richard P.
I do carry some personal debt which is around £20,000 but the interest rates are less than 7% and I have the repayments under control at present. But I am on a no spending spree at the moment, so unless its absalutely neccessary, I won't spend.
I am not familiar with the 'Beneficial interest' senario so that sounds good. Also, the £100,000 debt has interest rates of up to 25% and rising so its only going one way it seems.
The business is in furniture retail and is well established in our area and has been for 25 yrs. It does make money and so if there is a way to rearrange and keep it floating then the fellow Paul that you mention may be an option.
To answer RHB:
We are both unsure as what to do to make an alternative living. Although we have lots of retail and manufacturing experience, but I do fancy a change maybe to retrain if thats what it takes, but hopefully we can turn this around.
My partner isn't interested in the IVA method, I think she wants to let it all go, and of course I am concerned about this way forward, although if it helps her cope with losing such a big financial and emotional investment, then I do wonder! But I'd like to save as much as possible.
I haven't paid my Dad back, and he's been generous about the arrangemant. The reason I let her have the mortgage in her name was because she needed the house as security for covering the mortgage on our shop at the time, which we still have although I think since the banking crisis, its now in negative equity by about £30,000.
Any more advice is welcome.
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| RHB |
Posted - 01 March 2010 : 07:18:26
Sorry, meant to add, if the business is in trouble wat would you both do to earn money? Also, if the property is in her sole name it may be that some creditors might seek to put a charge on the house anyway if she doesn't sort out her debt problem. Have you posted on the IVA board to see if that is a possibility? |
| RHB |
Posted - 01 March 2010 : 07:14:42
Seems a bit odd to me that you would part with 10,000 pounds but not be on the deeds or married to tat person? Have you paid your Dad back now? |
| Richard P |
Posted - 28 February 2010 : 21:02:18
Hi Burnt fingers
welcome to the forum
sorry to read about your predicament
Ok I take it that the debts are not in joint names ?
the easy part should be the house 40k equity shared between the two of you, shame that you are not both on the mortgage but it is not insolvable.
if your partner does declare BR some one may be able to by the beneficial interest in your property, could be you ? If no one can buy the BI then yes the house may have to be sold but that is still someway down the line.
The business, for some one that does not have a business a 100K worth of debt is a lot so some would automatically go for BR, but if the business has previously had good turn over then you may be able to get a rescue plan and enter into some sort of agreement with your creditors.
I would suggest that you should contact Paul @reviva, he has helped restructure many business and help them avoid BR and if unable to save the business he will be able to help with the house and BR
good luck and regards Richard |
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