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Struggling with business debt

(9 Posts)
helpneeded30 Tue 07-Mar-17 22:35:58

Hi, hoping someone can give me some advice. I desperately need it. Husband ran own business - construction industry - until 2 years ago when he stopped through ill health, nothing desperate, but he's almost 60 and was physically struggling and work had temporarily dried up. Since then business debt has kept rolling and is now basically at overdraft limit of £10,000. Husband has done maybe half a dozen small (few £100) jobs in those two years. A couple of days here and there. He really isn't fit to go back to it, has no one working for him, sold the forklift and machinery he had, etc. And is still in debt. It is a limited company.

I just feel desperate and don't know what to do. I was also a director of the company, although got the accountant to remove me as one a year ago, but my name is still on joint business account. We are relying on my wages to survive but this debt is making me feel ill. I cannot honestly see any way he will ever work (regularly) again or how he will pay this debt. He talks vaguely of getting work, but it's not going to happen. What do we do? Can he declare the business bankrupt? Will that affect him/us? I have no idea where to turn or what to do. He has absolutely no income, and frankly I'm struggling to keep our heads above water (along with pay mortgage, bills, food etc. We still have teenage children at home). I cannot pour money into his business as well to pay off any debt.

Any financial experts/accountants out there with any suggestions? They would be very gratefully received. I've tried to get him to speak to bank about freezing the debt and he makes the right noises but hasn't done so. Even frozen we will never be able to pay it - he just isn't working!

Frouby Tue 07-Mar-17 22:38:28

I would speak to a specialist. Do you have an accountant? They maybe able to help.

Where is the debt coming from?

AllHailTheSunDog Tue 07-Mar-17 22:38:36

There's lots of advice over on ukbusinessforums.co.uk regarding this sort of thing - maybe have a look over there?

helpneeded30 Tue 07-Mar-17 23:06:27

Thanks folks. I'll take a look. The accountant is very vague and has just made noises about 'hopefully he'll be working soon' etc. Debt is spiralling every month, I don't understand it - DH still paying for stuff - minor tools, steel, bits and pieces for jobs - but never seems to earn anything much off them. Last thing was about £300 for a tow bar on his car - and bought a trailer 'because he needs one to haul stuff to the job'. WHAT job? 'Well he will need one to get any work - how is he supposed to move materials about?...' I'm so frustrated.

Sparklydress Tue 07-Mar-17 23:08:38

He can liquidate it surely? It's a ltd company is it?
You are personally protected if it is. Be careful about trading while considered insolvent.

FlappyRose Tue 07-Mar-17 23:12:32

Business Debtline is very good

helpneeded30 Tue 07-Mar-17 23:15:35

It is definitely a limited company. I'm not sure what you mean by trading while considered insolvent - is it that he keeps buying things/running up debt when he hasn't actually got any work coming in? This is something I'm worried about. He does genuinely live in cloud cuckoo land at times. I think he buries his head in the sand.

Sparklydress Tue 07-Mar-17 23:22:53

You are protected much more then if it's a LTD company. Yes, be careful about trading while you might be considered insolvent as you can get director disqualifications etc.

Sparklydress Tue 07-Mar-17 23:24:32

Here you go

www.gov.uk/liquidate-your-company/overview

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