I told my sister I would post this on her behalf....hope somebody can help....
Hi,
I'm hoping somebody can suggest a realistic way forward...
My problems started back in October 2003 when I was made redundant from a highly paid job which came with company car, mobile phone and other benefits. I was given a tax and national insurance free payment of £12,000.
At this stage I already had impaired credit from small debts I ran up on store cards in my younger days - I decided to go into business with a friend and in order to release equity from my house I sold the property to my business partner rather than borrow again at a higher rate of interest. I realsed approx £30,000 in equity - however the partnership didn't work out. This was in May of last year and the friend agreed that I could keep the mortgage on in their name until I sorted myself out. I then invested £10,000 in a franchise business which I am still running and got myself a job in a restaurant to provide additional income.
I put my house on the market in July of last year and expected it to sell quickly and at which point I was planning to down grade and rent for a while, at this point it was valued at £199,950. This month I have accepted an offer of £172,000 as I am unable to meet the required mortgage payments.
In December of 2004 I was hit by a car and badly damaged by leg and shoulder and it will be 6 weeks before I can walk unaided. So I am getting £66.15 SSP from my job in the restaurant. The business is making approximatley £300 - £400 profit per month.
In January 2004 I got a tax bill from the Inland Revenue for £5000 which has now spiralled to £7000. It may sound naive but my original job I was getting dividends but nobody explained that I would get a tax bill of this size so I have not budgeted for it!
I have a secured loan with a balance of £6500 with Welcome Finance which I pay £184 a month. I have sold the house that this loan was secured on but at the time I expected the solicitor to include in the settlement figure but this wasn't done. And I stupidly let it go and continue to pay the monthly payments!
I owe £4400 on a Credit Card belonging to my sister and owe my other sister £3400 cash.
I am living with my sister at the moment and not paying any rent/ mortgage/ council tax but at some point in the near future I will need to include these figures in my outgoings.
I have tried to get everything down but please ask if I can provide any further info....
Is Bankruptcy the best option?
How will this effect my franchise?
Frankie