Debt Over £100k!

Simpsona

Hi, please can someone advise or help if they have had similar levels of debt??? Ive breifly told my circumstances on another thread 'advice and support desperately needed' but only one reply so far (thanks deedee) Hubby and I both self employed, combined debts over £100K, all unsecured. Both now find ourselves on little or no income from our business due to credit crunch seriously affecting consumer spending in our town. Both looking to go back into employment but will never be able to pay the debt accumulated during our 4 years in business. Will have to shut mine down but unsure if I would be allowed to re-open once OR sells/takes what he wants? Also are the courts likely to come down hard due to the fact that our debts are so high and we have no possessions of any value and house in neg equity? I feel like we will be frowned uppon by a judge for this mess? Please help? I'm getting so snappy at the kids and its not fair on them.

peachyprice

Hi Simpsona,
Of all the people who have been unfortunate enough to go BR here, I don't think anyone has been belittled by a judge. The judge is there to look at the facts, that being you cannot afford to pay your debts, it wouldn't make any difference whether you owed £10k or £100k, you would be treated the same.

TBH, £100k between the pair of you for a failed business and personal debts isn't that bad, honest.

If you're not making a any money at your business I don't think the OR will let you continue, however, I'm not that clued up on sole trader businesses, but I'm sure someone else will be along who is.

Simpsona

Thanks Peachy, It is just such a huge amount, when I wrote it all down on paper I just sat and cried! Its really accumulated from 3 business and a little personal. My hubby ran a property company which left him with debt then did a few years lanscape gardening which didnt bring him out of debt then I opened a play centre whch was doing 'ok' till recently! Feel like the rug has just been pulled from under us tbh! x

JCS1

OR is likely to take all the assets from the play centre. if there was a lease on the premises, this would be included in the BR, so am unsure how you could continue trading at a later date? Play centres also have quite a few liabilties attached with kids possibly getting hurt, so the OR would be unlikely to let you keep trading as he would also be liable (and it;s the OR him/her self who is personally liable, not the civil service)

Please speak to business debtline, as they will be able to offer more advice.

peachyprice

It all adds up, you don't realise just how much when it's £5k here and £5k there.

It is frightening, but the judge and OR will have seen far worse, I can promise you that.

JCS1

peachyprice wrote: »

It all adds up, you don't realise just how much when it's £5k here and £5k there.

It is frightening, but the judge and OR will have seen far worse, I can promise you that.

For failed business and personal debts, yours figures are about 'normal'. I've seen much higher figures in the past, and your judge and OR will have seen higher amounts too.

Simpsona

Thanks again Peachy! x Yeah technically there is a lease but its not signed yet (solicitors dragged thier heels for well over a year) We are quite badly in arrears with rent but the Landlord is being quite laid back as he knows he wont find another tenant (quiet end of a slowly dying town centre) I might be wrong but I think he would allow us to stay as its the only way he'll ever get his money back as there will be very little realised from the sale of equipment. (only a small play centre in a retail unit you see)???? Dont really know? Gutted how much it cost us to set up (around £50k+) but mainly fixtures and fittings that will have very little sale value and a softplay structure that cost £10k but we are seeing similar on ebay second hand for as little as £500! Playcentre could funtion with just ride alongs and basic toys as our customers are all pre-school and its parent supervised. I have one staff member too and she will loose her job if I'm shut down. Feel bad about that too!