where do you start

Dikko

I own my own company which has seen the turnover reduce by 75% in the past 9 months. Despite reducing overheads and staffing levels the turnover is just not meeting our income requirements. For example we have not paid ourselves since November 2008.
We have put our house on the market offering a house swop in an attempt to reduce our mortgage payments but this has only just been implemented.

As of next month we are basically running head on to going behind on our payments.
Our position is:
Credit card debt of £40700
Loans unsecured of £25000
Overdraft x 2 of £26000 (secured)
Mortgage of £188000 value £250000 (equity £62000)
Monthly outgoings of £4500
Income now £!!!!!!

Obivously if we can sell our house we should be okay but my fear is if things dont go to plan we will be heading for bankruptcy very quickly.
Can anyone find the time to give me some help as I'm now at my wits end and cant help worrying that everything I have worked for is going to be lost. i.e if you lose everything where do you live?
Thanks

dikko

nervousmother

If you loose your house you have to go rented,

you say the house value is 250k? is that a recent valuation from a surveyor? looking at your debts the house wont wipe them out even if you manage to sell, you may still end up BR especially if your business fails.

Its a harder thing to do when property and business is included in a BR, please get debt advice, good luck

Dikko

Thanks for replying its good to talk to someone who can help give some thoughts to the crazy situation we find ourselves in.

The house has been valued at £265K but I thought £250 would be about right. If we go close the business and go br how do the two intermix.

Is that a problem, and if so who can we turn to to get advice?

regards

Dikko

Rach2007_2

Have you tried ringing business debtline? Don't have their number but should be easy enough to find.

Can't add any more advice I'm afraid but just wanted to say all the best, I feel sorry for you I really do. At least you're not alone.

Take care and let us know how you get on.

tigerfeet2006

Yep! definatly talk to BDL, link and number in my sig.

Be aware that they are horrendously busy at the moment so you will need to sit down with a drink and just keep dialling and redialling, some of the charities have up to half an hour waiting.

Nomad25

Look I don't know if this could help, but before you commit yourself and go down the BR line, why not complete and post your soa, here is link:

http://www.makesenseofcards.com/soacalc.html

Perhaps someone will take a look at it and point you in the right direction. Good luck.

fiveyearplan

Its a terrible situation to be in but not one without a solution! Take Tigerfeet's advice and ring Business Debtline. They were very good with me however they did paint a worse picture than they needed to. Come back on here and let us know what they say and we'll let you know. Ie they told me I would definitely lose my house - nearly a year on and I'm still in it and the OR doesn't seem to want to do anything with it for the time being - we are not in negative equity either.

You'll find a way forward.

Dikko

Thanks everyone who gave some advice......it really does help, but then you know about how Im feeling right now.

PHONING DEBT LINE TOMORROW AND WILL COME BACK TO YOU ONCE IVE DONE THAT.

DIKKO

ampersand

We'll be checking your news post-call, dikko.

Thinking of you and wishing you a way through - you'll find it with all the good peeps on here.