Serious help needed please.

richash

Hi, my parents are in some trouble financially, i'll try to keep it short.

My father owns a Ltd window business, 2 years ago the bank put a lot of pressure on him to convert his £35k overdraft to loan, he eventually had to accept it and has been paying £555 pm for the last 24 mths. Due to thedownturn in the market and ill health he is not able to continue trading. After the loan had been accepted the bank were constantly asking him an my mother to sign another document, which they did a few months later, it turns out that this gives a personal guarantee on the loan. these are there personal debts

Mortgage - £70K - Joint House value £140K
Loan -£35K - Joint - Paid £13k in the last 2 years,Never missed a Payment)
CC - £20K - Joint
Owe to suppliers - £15K - Himself
Car - £3K left (1 year on HP) - Joint

Another point is that about 18 years ago he was diagnosed with a couple of serious illnesses which are controled by steroids and a steel bar holding his spine together, he has still worked manually in the trade for the last 15 years.

He can easily claim invalidity due to his illness but never has, but if he did now that would pay a big chunk of his mortgage, however the payment of £555 for the loan i still there, obviously their concern is losing their home. Should it come to that and can anyone offer any advice.

Thanks

wallopadonkey

someone with the required nouse will be along shortly i am sure
some of the best brains in britain live in and around this board i am sure a good suggstion will appear
in the mean time you should get them to ring business debtline i think the number is in the sticky at the top of page 1
cheers

richash

Just a little nudge, incase anyone can help. thanks

dalip

Not brill on houses but that loan sounds like it is secured. Read the document thoroughly.Then give one of the charity debt helplines a ring or go see your local cab. Sorry i can not be more help.Dx

tigerfeet2006

If he was to declare himself bankrupt then his wife would have to buy his portion of the beneficial interest which would be £35k on your figures. All joint loans would fall to her to pay. though, unless she goes BR. Then they would have the problem of finding someone to buy all the BI of 70k.

I think a trip to the CAB may be in order or a phonecall to Business Debtline to go through their options. Unfortunatly with that sort of equity, if it is a sensible valuation, they are not really insolvent.