Note: You must be registered in order to post a reply. To register, click here. Registration is FREE!
T O P I C R E V I E W
Rich Mather
Posted - 24 September 2008 : 23:29:10 My little company has just failed as a result of a bad debt and no work due to the economic climate, we provide a very high end product.
My wife has got a job at nights and i have got some part time work however our income has gone from 2k a month to 1k. We are going to have to take responsibility for some of the debt owed by the company personally. so heres a run down on the figures please let me know your thoughts
We will owe 31,544 in overdraft,credit cards and loans.
Our minimum personal overheads are 1316.27 a month
We are earning 1000.00 a month.
The company was limited but we had to be personal guarantors on the overdraft and some of the credit cards were paid by the business but were in our names, so now the company is shelved we are going to have to stump up!!!
IVA sounds nasty is banckruptcy the best bet?
Cheers
rich mather
2 L A T E S T R E P L I E S (Newest First)
Rich Mather
Posted - 25 September 2008 : 00:13:02 There is no assets either personal or business we are in rented property, vehicles on hp etc etc. our intention is to plug the gap as soon as with some subcontracting work as a sole trader this should be the break even point but whats after that.
rich mather
Reviva UK
Posted - 24 September 2008 : 23:42:13 Hi Rich
To be honest neither Br or an IVA will resolve the short term problem in that you need to earn more money to break even.
Whit an IVA you will need to make a contribution towards the debts and clearly at the minute that is notpossible.
There is also little point going Br if at the end of each month you are going deeper into debt again.
I would suggest that in the first instance all the creditors need to be contacted and advised that you are having difficulties and initially offer and pay £1 per month each. Hopefully this will buy some breathing time.
You then need to decide how you are going to get back to zero ( i.e. what comes in goes out) . At that point you are in a position to make a decisionon a long term debt solution.
What sort of business were you in? Do you have any assets such as a house, car , left over stock from the business etc etc ?
Paul Johns Assisted Bankruptcy Specialists Reviva UK www.revivauk.com
