Small Business Debt

Skintgirl_3

Hi

Hopefully this is the right place for this post. My husband and I ran a small business which has now ceased trading due to the company making a loss. We put in a fair bit of our own personal money but the company still owes just under £25,000, made up of an £18,000 loan and £7,000 overdraft. We also have a large amount of personal debt, I will post an SOA shortly, but I was wondering if anyone knows if anything could be done about this debt as the company is no longer active.

Thanks

Peekay32

I take it the business wasn't a Ltd company?

Skintgirl_3

Hi

Yes, it was a Ltd Co.

Pobby

Hi skintgirl. When you took out credit did the directors accept personal guarantees?

Skintgirl_3

Hi Pobby

Unfortunately yes, we did accept responsibility.

fiveyearplan

How much is your 'personal' debt. That business debt is personal too as you signed as guarantor.

I did the same thing and it ended with me filing for bankruptcy. My business debt was considerably more though.

Have you spoken to any of the debt charities? Business Debtline, National Debtline or CAB.

Skintgirl_3

Hi

All together we owe £112,000 for business and personal, on a mixture of loans, credit cards and overdrafts. At the moment we are just about meeting the monthly payments, but it's pretty stressful to say the least. We are trying to avoid bankruptcy if possible as we are both also directors of other companies.

I did go in to my local CAB last week but to be honest didn't find them overly helpful. I wanted to talk through what my options were but before they would tell me anything they wanted me to sign something saying I would not spend any more on credit cards etc and I'm not sure I wanted to commit to that - over the last few months I have managed to make £9k on credit cards interest free through swapping. Therefore they told me they couldn't help.

fiveyearplan

What about business debtline? They are quite good.

I wish you luck and hope you get it sorted. I didn't want to file BR either however didn't really have any option and am glad I did now as I was trying to run my ltd company along with a sole trader business and I never had any time to do anything but work.

Skintgirl_3

Thanks, I'll give them a try