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Urgent Help Needed Please!!
smiler71_2
Posts: 11 Forumite
Hello
I have had some fantastic advice from this site over the last few years and was hoping someone can help me with a somewhat complicated question. I’m not sure if this is the right place to post this, but hear goes anyway! I experienced some major financial difficulties in 2006/7 which resulted in me declaring myself bankrupt in October 2007, and subsequently discharged early in June 2008. A big part of my financial difficulties arose from a business I owned along with my partner (Ltd Company, both directors) that had experienced financial problems for a year or so previously. However, prior to my bankruptcy the business had started to making some profit. Both my partner and I sought professional advice from an Insolvency Practitioner prior to my bankruptcy. The IP advised my partner to enter into an IVA and have his parents take a deed of assignment over his half of the equitable interest in our home to pay his creditors. I did not have any equitable interest in the property as one of my creditors had obtained a second charge for the full amount of my equity. Obviously my only alternative was to declare myself Bankrupt and resigned my directorship of the company which I did.
Due to the financial climate the business has once again got into some difficulty, and on the advice of the accountant my partner has decided to call it a day and close. He received some interest from a third party to take over the lease and sold the fixtures for a small sum of £2000 which was used to pay off electric, water, business rates etc. the business bank account was left with a deficit of £5500. Both my partner and I have now received letters from the bank stating we signed a personal guarantee for the outstanding money. I was aware that we had signed a debenture in 2004 when we took out a small business loan but was of the understanding it was for that alone. I checked the Companies House website and purchased a copy of the debenture and it says “all moneys and liabilities whatsoever, whenever and howsoever incurred by the Company whether mow or in the future”. So that obviously means that this debt is now personally owed by us. Neither my partner nor I are in the position to pay this money back at the moment, my partner is in receipt of benefit and I am a full time student.
The bank is adding interest charges at an extortionate rate, £200 in the last week! What I would like to know is:
The debt is from an overdraft (5000) and business credit card (£1000). Now that this debt is personal can we make a claim for all charges applied to the account? I worked out the last 10 months alone my partner paid over £1000 in charges.
Would I still be liable for the debt as the debenture was signed prior to my bankruptcy?
One other thing, the loan the debenture was originally drafted for had a PPI attached to it (miss sold) so we successfully reclaimed it back early last year. The bank in their wisdom wouldn’t simply pay it off the existing loan but said we had to start up a new loan minus the PPI. Obviously with both our credit ratings at this point having been destroyed it caused some problem to sort out the new loan. However the bank had to agree it. On the day the transfer took place the agreement wasn’t ready so the transfer went ahead without us signing a credit agreement. The loan was finished about 6 months ago but we never even saw a credit agreement let alone sign one. I know it’s a long shot but could we use this as a bargaining tool to offer a figure we can afford? My partner’s parents are in the position of loaning us £2800. I have sent them a letter offering this in full and final settlement.
Sorry it’s so long winded, I hope you can make sense of it and provide some help.
I have had some fantastic advice from this site over the last few years and was hoping someone can help me with a somewhat complicated question. I’m not sure if this is the right place to post this, but hear goes anyway! I experienced some major financial difficulties in 2006/7 which resulted in me declaring myself bankrupt in October 2007, and subsequently discharged early in June 2008. A big part of my financial difficulties arose from a business I owned along with my partner (Ltd Company, both directors) that had experienced financial problems for a year or so previously. However, prior to my bankruptcy the business had started to making some profit. Both my partner and I sought professional advice from an Insolvency Practitioner prior to my bankruptcy. The IP advised my partner to enter into an IVA and have his parents take a deed of assignment over his half of the equitable interest in our home to pay his creditors. I did not have any equitable interest in the property as one of my creditors had obtained a second charge for the full amount of my equity. Obviously my only alternative was to declare myself Bankrupt and resigned my directorship of the company which I did.
Due to the financial climate the business has once again got into some difficulty, and on the advice of the accountant my partner has decided to call it a day and close. He received some interest from a third party to take over the lease and sold the fixtures for a small sum of £2000 which was used to pay off electric, water, business rates etc. the business bank account was left with a deficit of £5500. Both my partner and I have now received letters from the bank stating we signed a personal guarantee for the outstanding money. I was aware that we had signed a debenture in 2004 when we took out a small business loan but was of the understanding it was for that alone. I checked the Companies House website and purchased a copy of the debenture and it says “all moneys and liabilities whatsoever, whenever and howsoever incurred by the Company whether mow or in the future”. So that obviously means that this debt is now personally owed by us. Neither my partner nor I are in the position to pay this money back at the moment, my partner is in receipt of benefit and I am a full time student.
The bank is adding interest charges at an extortionate rate, £200 in the last week! What I would like to know is:
The debt is from an overdraft (5000) and business credit card (£1000). Now that this debt is personal can we make a claim for all charges applied to the account? I worked out the last 10 months alone my partner paid over £1000 in charges.
Would I still be liable for the debt as the debenture was signed prior to my bankruptcy?
One other thing, the loan the debenture was originally drafted for had a PPI attached to it (miss sold) so we successfully reclaimed it back early last year. The bank in their wisdom wouldn’t simply pay it off the existing loan but said we had to start up a new loan minus the PPI. Obviously with both our credit ratings at this point having been destroyed it caused some problem to sort out the new loan. However the bank had to agree it. On the day the transfer took place the agreement wasn’t ready so the transfer went ahead without us signing a credit agreement. The loan was finished about 6 months ago but we never even saw a credit agreement let alone sign one. I know it’s a long shot but could we use this as a bargaining tool to offer a figure we can afford? My partner’s parents are in the position of loaning us £2800. I have sent them a letter offering this in full and final settlement.
Sorry it’s so long winded, I hope you can make sense of it and provide some help.
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Comments
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Sorry dont no the answer, but i am in a simular situation? My Ltd company is now dissolved, but I owe £8000 to hsbc as a overdraft, They are demanding full settlement in 14 days or else, i believe i signed a garuntee for 5000 but 2000 was added on the phone and i never signed for this, the other1000 is interest. I was wondering if transfering parts of this to 0% credit card was an option? as I can manage to find about £4000 to pay, does any no if this is possible?
Thanks0 -
bumping for you guys, sorry I cant be of help x2012 Wins - Danepak Fridge Magnet, £20 Just Eat Voucher, iTunes Song Download, Yellow Toaster and Kettle, Thorntons Bunny, 6 Months Gym Membership, £250 Multipower Products, 3 X Dalepak Vouchers, 10 minute sunbed session, Lucozade Sport, 2 X BMI Flights, Android Zeemote,0
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best person to be honest to ask is your o/r0
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