Urgent Advise Please

VeraG

I ran my own business from my previous address and got into financial difficulty during last year. We kept deciding to carry on another week and hope things would improve. They didnt, custom slowly decreased and the debts spiralled. The only assett i have is a small equity in my previous property. My mortgage which is interest only is about £85000, other debts make a total of around £135000 altogether. The property went on the market last May at £127000, it is now priced at £119500.
Looking at priority debts, the only one in that catagory is Revenue and Customs which is about £8000. I also owe my one former full time employer wages, redundency etc of about £8000. Whilst i regret that i owe anybody, it is my employer that is troubling me greatest because he has only got about £40 a week from Social Security (he lives with his retired parents), and although he does have some savings i dont want him to have to spend that to keep him going.
I havent paid any mortgage since i made a token payment in late January. They say two months non-payment and the repossession procedure begins. I have been unemployed, on the sick infact since November last year. I forgot to say that we ceased trading on 1st November 2008.
Can anyone advise me what to do? I was hoping to sell the house for enough to pay the outstanding mortgage (85000) priority debts (Revenue £8000 and my ex-employer £8000), and then declare myself Bankrupt as i have no prospect of being able to afford to pay most of my creditors.
I am now living in a council flat and the house that i am selling is empty.

sammy115

Can i enquire as to why you owe your employer money? bit confused

fairydiamond

I think the OP means Employee

sammy115

thats what I was wondering....if that is the case and the co goes into 'administration' then the employee will be able to claim redudancy and unpaid wages from the insolvency board. HMRC is no longer a preferred creditor so if OP pays the HMRC all the debt and none of the other before going bankrupt then it may be frowned upon...I am unsure but I am sure someone on the bankruptcy board may be able to advise better.

McKneff

I cant help with this but i just wanted to say 'bless you for caring and thinking about your employee' what goes around comes around and i'm sure in time you will be okay, trust me.:A

10past6

VeraG wrote: »

Can anyone advise me what to do?

Contact Shelter, they have a proven track record of assisting / directing folk facing repossession.

I applaud you on having a conscience towards your employee :A