HSBC Overdraft with Personal Guarantee

emmy_2

I saw an Insolvency Practitioner yesterday who deemed my company insolvent ... as there are hardly any assets within the company I cannot afford to go into liquidation or administration. He advised that my best couse of action would be to cease trading, write to all of my creditors with a Statement of Affairs advising them that I will strike the company off in 3 months time. The creditors are entitled to write to Companies House to petition against the company being struck off, and they could put my company into Compulsory Liquidation - my IP doesn't think this likely as the most I own one suppliers is approx £5000.

The main problem I face is that my husband and I have signed personal guarantees against our £30,000 overdraft and HP finance of which £12,000 remains. The IP advised that we speak to the bank and try to negotiate paying back a smaller amount as we will have no income and no personal assets (our house has hardly any equity).

My question is ... how much is a reasonable amount to offer the bank and how realistic is it to expect to come to any arrangement at all?

Has anybody had a similar experience or can anybody offer any advice at all .. it all seems a bit daunting as I can't seek any further advice from IP as he will expect to be paid any I don't have anything to pay him with!

Thanks :-)

CLAPTON

I would suggest you speak to payplan, CCCS, CAB about your personal debts. (they all offer free debt advice)
Obviously one would need to see your SOA before offering any advice because the sensible options depend upon your income, spending, your debts and value of assets.