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Bankruptcy advice?

5 replies

StHelens24 · 21/10/2019 15:09

so i own a business - sole trader - my business partner is my mum.

to cut the story short the once manageable debt is now unmanageable due to a slow down in business and we are falling behind on payments- owing a total of £60k to unsecured debts.

If we go bankrupt i have only just purchased my house so there is little or no equity - will they force my mum to sell her house as there is equity? dont feel its fair for her to pick up the full debt costs.

Is there any way to avoid this? we have emailed all companies to offer token payment but its tiny at the moment- we will be closing the business in Dec- once our lease is up so my mum who works full time in the business will be able to find paid work - so our payments will increase but at this moment we can not guarantee when this will happen or what money she will earn - its been 2 weeks and not heard back from some companies so have a suspicion they will decline offer and force us into bankruptcy. Obviously we would rather agree a figure and pay all debt back - we really can not loose our houses i have a 4 year old.
Any one managed with this level of debt to come to an agreement and not be forced into loosing home?

OP posts:
Onescaredmuma · 22/10/2019 06:26

Not the same as you but my husband ran up secret debt of £42k step change were amazing have you tried talking to them. He's on a DMP now and I'm retraining so I can restart work earlier than we had planned. It's been just over a year since I found out about the debt we're slowly chipping away at it. Good luck with it I wish I could be more help.

stucknoue · 22/10/2019 07:30

If you are a limited company then it's not an issue but it sounds like you are set up as a partnership therefore it could be the case that your mums home is at risk (as is yours, lack of equity doesn't matter you would need to sell). Get good advice and set up
debt replacement plans now

GetyourAQSFright · 23/10/2019 00:34

I strongly recommend you post on the bankruptcy forum on Money Saving Expert website. There is a lot of knowledgeable people on that board. Also suggest contacting one of the debt charities, Step change as a pp mentioned would be a good place to start.

SnoogyWoo · 26/10/2019 22:13

Do you owe the £60k to one institution or multiple? I owed £70k in total 8 years ago, nearly paid it back now.

StHelens24 · 28/10/2019 08:00

HI, Its multiple

Wondering if IVA is best route

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