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Business gone bust, jobless, dh chonically ill and being chased for money

(18 Posts)
sofatuber Sun 26-Jul-09 12:23:13

Our business went bust a few months ago, we lost our life savings. We have no house and are struggling to pay the bills now (his parents are helping) DH tried to claim incapacity benefit to be told he hasn't got enough NI contributions. He suffers from a chronic mental condition.

I am not working and claiming benefits. Now we are being chased by the landlord of the commrcial premises as we were both personal guarantees. The real debt is about £16k for unpaid rent but they've bumped it up to £39k through charges and apparently we have to re-kit the whole place (for instance the carpets need to be replaced...they were filthy when we took over, amd they quoted £1600! Its two offices, oh and they ignored all our rqweusts for an inventory and our requests to fix the leaking roof) And while hindsights a wondrful thing, its done now and we hav to live with the consequences. We were under immense pressure throught our time in the businss and going bust was very unpleasant. This is adding insult to injury. Our outgoings far exceed our income and we have no way of paying now or in thee near future.

Even if I find a job soon, it will not be enough to support our family let alone pay off the evr increasing debt.

I am going to make an app.t with CAB and go from there. Any wise words???

whomovedmychocolatestarfish Sun 26-Jul-09 16:04:18

Yes. Bankruptcy is not as bad as it's made out and over quick. In your circumstances this might be an option. Don't be scared. Take it a day at a time. Put your health and welfare first.

edam Sun 26-Jul-09 16:30:26

So sorry you have having such a terrible time. Glad you are speaking to CAB - hopefully they can act as intermediaries and either help you to come to some agreement with your creditors or investigate bankruptcy.

risingstar Mon 27-Jul-09 07:32:39

so sorry that you are in this position, it can only get better for you.

CAB will point you in the right direction but in the meantime bear in mind that nobody can take off you what you havent got. the worst that can happen is that someone else pays for you to be declared bankrupt or insolvent, nothing worse can happen than that. and that wont put you in a worse position than you are now. whatever anybody writes in a horrible letter to you, they know that and that is the risk they take in business- a personal guarantee is only worth what an individual is and that varies a lot.

make certain that you are claiming all the benefits you are entitled to. ok you wont get any based on nu contributions but you should still get some housing benefit, council tax etc.

Really hope that things get better for you and dh soon.

expatinscotland Mon 27-Jul-09 07:36:12

I'd look into bankrupcy if I were you.

I had one in the US years ago after things really hit the fan, and it's not as bad as some people make out.

It's there for a reason.

ABetaDad Mon 27-Jul-09 08:33:38

sofatuber - bankruptcy is really your only option. It seems unlikely that you ever will be able to repay the money and your welfare and your husbands health are more important.

It is not something to be entered into lightly but as expatinscotland says it is there for a reason and you have a very good reason.

Once you have a bankruptcy order the creditors are not permitted to chase you anymore as the bankruptcy order is administered by a trustee apointed by the courts. As long as you comply with the order you will be protected from your creditors and be able to start rebuilding your life.

mumblechum Mon 27-Jul-09 08:40:30

If I were you I'd also be looking at bankruptcy. You unfortunately need to find an admin fee upfront of several hundred pounds (sorry can't remember how much it is these days) to lodge a Debtor's Petition at your local county court. The court will then contact the Official Receiver who will ask you for details of all your creditors and then you'll be given a date to go to court.

The court will usually make you bankrupt on that day and so long as you keep your noses clean, will discharge the order after one year, but you can't usually get credit for about 5 or 7 years after that.

mumblechum Mon 27-Jul-09 08:40:47

Sorry x posted

expatinscotland Mon 27-Jul-09 12:02:16

Don't know if anyone knows this, but is there a way for someone who literally hasn't got the money to apply for bankrupcy?

In the US, it only cost me $99, but it was literally the last 100 bucks I had.

Shocking to think it could cost several hundred pounds here when, well, the person is bankrupt.

ABetaDad Mon 27-Jul-09 13:41:11

There is a low cost route called a Debt Relief Order (DRO) but the debt must be unsecured and less the £15k in total.

It costs £90.

sofatuber Mon 27-Jul-09 20:23:29

How about just disappearing? We have no roots here and only rent a house. TBH I want to get away from here as it has bad memories (we moved here to start the business, shit...what sacrafices we made)

Tis not fair <has a paddy about unfairness of it all>

GypsyMoth Mon 27-Jul-09 20:35:25

no,sofa,things have a nasty habit of catching up with you! stay to face it,you'll feel better that way.

ABetaDad Mon 27-Jul-09 21:13:10

You can get it sorted now and then it cannot follow you and then you can consider starting again elsewere. Do not run away.

Can your family lend you the money to go bankrupt. Once your other debt is removed you will be able to pay them back.

mummy2isla Tue 28-Jul-09 22:11:35

Go bankrupt. No shame in it now. Best thing is to get one of your creditors to make you bankrupt. Just stop paying anything on your debts and it'll happen soon enough! With bankruptcy all your debts are written off and a line is drawn. Let me know if can be of further help - I'm a solicitor.

expatinscotland Tue 28-Jul-09 22:27:40

Having had a bankrupcy, I'm here to tell you, sofa: the worst part of it is the lead up to it.

In my case, it was in the US (chaper 7, personal bankrupcy).

I had been on a spectacular downward spiral the two years prior to it: an expensive divorce involving property, made redundant twice and finally, no medical insurance when a repeat drunk driver hit the car i was driving (was one of my boyfriend's, although I was insured to drive it) and i had injuries and of course, the person who hit me was driving a friend's car without his permission and went to prison.

Then I couldn't work and as I was working for a temporary agency I didn't get paid time off.

I was on unemployment, I had to give up my rented apartment and pay a fee to break the lease (my boyfriend took care of it), then move in with my boyfriend and I had FA to my name.

Nothing but debt and no way to pay it.

I felt like such a loser.

But there was no option for me and I spent many a sleepless night worrying that the judge wouldn't grant it and then what and it was a seriously bad time.

The day it happened and my solicitor rang and told me it was all over it was like a weight off my shoulders!

Like I said, it's there for a reason.

walkinthewoods Wed 29-Jul-09 20:57:50

Thanks for all your replies. The thing that scares me is that they publish your name and all that! Yes I know that it can catch up with you. I had a friend who paid one debt but had soemone else chasing her quite a few years after. I have heard that they can chase you up to 12 years. My worry is that 12 years down the line and eventually in a stable psotion, whacked with the old debt.

Mum2isla they have alreasdy indicated bankruptcy in thier letters.

walkinthewoods Wed 29-Jul-09 21:00:25

Computer just crashed. Will post when sane (not tired) Mum2isla. Would like to talk some more but ds had me up at 4.45am little bugger.

FluffyBunnyGoneBad Wed 29-Jul-09 21:09:41

You know you've got 2 different names on this thread dear?

There is something called the statute of limitations, it's an act of parliament that prevents creditors coming after you past 6 years, meaning if you have had no contact/made no payment for 6 years they can't harass you. In the mean time, a bankruptcy order will prevent them from chasing you and making your life miserable. It's by no means the easy way out, the court will publish your name which will go in the newspaper (don't worry about this though, no one -apart from the sados- will read this), you are appointed someone who will go over your affairs/income/outcome. The CAB can help you more.

I am so sorry to hear that your life is like this. It may seem like a fight not worth it but it is, you have to pick yourself up from this and move on. You can't change the circumstances you have found yourself in but you can change how you solve them. The temptation to run away sounds so high, I wouldn't judge you for this but as someone else has said, it will come back and bite you when you least expect it. Shit happens to everyone, take a stand, get some help and wash it off your shoes. It will work out for you and your family in the end, even if you can't see it now.

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