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HELP please advice needed if possible
emjxxx
Posts: 3 Newbie
Hi this is rather long but i will make it as sort as possible so not to bore anyone!
My boyfriend runs his own business as a soletrader. He lives at home with his mum and dad during the week and with me at weekends, i have 2 kids already and we have just had a baby who is now 14 weeks old. The reason we don't live together is because of the amount of debt my boyfriend owes, we can't afford to live together as he could not support a family.
He owes £51,000 that is an unsecured bank loan in his name but it is secured against his parents house as they guaranteed a previous loan, that was alot smaller and the bank allowed my boyfriend to increase and extend the loan without his parents knowing!
he also owes about £50,000 in personal debt, a small personal loan and credit cards.
he also owes, £ 12500 in rent to the council, about £10,000 to the Tax/Vat man and about £6,000 to various suppliers.
He has taken the decision to shut the business as he has finally come to the realisation that the business just isn't viable. He has sold most stock to pay suppliers that he owed or they have taken stock back hence why he doesn't owe that much to suppliers.
He has very few assests, a car worth about £3000, a couple of bikes worth about £1500 and his laptop worth about £200 if lucky and then the rest of the remaining stock in the shop which may be worth £2000-3000 if sold as a job lot at auction.
Can someone please advise what may happen to his parents house? They have some life savings and maybe able to pay the majority of the loan, should they do this before my boyfriend declares himself bankrupt? Also as my boyfriend lives between his parents and my house can any of our possession be taken from us? I am really worrying that they may want to involve me and the kids and what possesions i have and his parents are also worrying that baliffs will come knocking at their door and that they won't be beleived when they tell them him owns nothing.
Any advice, words of wisdom and others expriences would be so great. This is stressing me so much that i have had to visit the doctors because my hair has started to fall out.
My boyfriend runs his own business as a soletrader. He lives at home with his mum and dad during the week and with me at weekends, i have 2 kids already and we have just had a baby who is now 14 weeks old. The reason we don't live together is because of the amount of debt my boyfriend owes, we can't afford to live together as he could not support a family.
He owes £51,000 that is an unsecured bank loan in his name but it is secured against his parents house as they guaranteed a previous loan, that was alot smaller and the bank allowed my boyfriend to increase and extend the loan without his parents knowing!
he also owes about £50,000 in personal debt, a small personal loan and credit cards.
he also owes, £ 12500 in rent to the council, about £10,000 to the Tax/Vat man and about £6,000 to various suppliers.
He has taken the decision to shut the business as he has finally come to the realisation that the business just isn't viable. He has sold most stock to pay suppliers that he owed or they have taken stock back hence why he doesn't owe that much to suppliers.
He has very few assests, a car worth about £3000, a couple of bikes worth about £1500 and his laptop worth about £200 if lucky and then the rest of the remaining stock in the shop which may be worth £2000-3000 if sold as a job lot at auction.
Can someone please advise what may happen to his parents house? They have some life savings and maybe able to pay the majority of the loan, should they do this before my boyfriend declares himself bankrupt? Also as my boyfriend lives between his parents and my house can any of our possession be taken from us? I am really worrying that they may want to involve me and the kids and what possesions i have and his parents are also worrying that baliffs will come knocking at their door and that they won't be beleived when they tell them him owns nothing.
Any advice, words of wisdom and others expriences would be so great. This is stressing me so much that i have had to visit the doctors because my hair has started to fall out.
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Firstly, your BF and his parents need to get proper advice from one of the proper sources (CCCS, Debtline, CAB)
If the debt is secured on his parents house then it is at risk if he goes BR whilst owing monies, after all, thats the point of wanting a guarantor, were they no part of his business?
Your possesions should be 100% safe if at your address if he (and/or his business) have no links.
How does he owe £12K in rent to the council if he lives at home?, that must represent 40 weeks rent on a property, assuming he had one, around here 2 missed weeks gets a possession warning!0 -
He owes £51,000 that is an unsecured bank loan in his name but it is secured against his parents house as they guaranteed a previous loan, that was alot smaller and the bank allowed my boyfriend to increase and extend the loan without his parents knowing!
Must admit, you have confused me here. Is the loan secured or unsecured??
He has very few assests, a car worth about £3000, a couple of bikes worth about £1500 and his laptop worth about £200 if lucky and then the rest of the remaining stock in the shop which may be worth £2000-3000 if sold as a job lot at auction.
The bikes and the cars will be viewed as assets and probably taken and sold. Not sure what happens to the stock in his shop.
Can someone please advise what may happen to his parents house? They have some life savings and maybe able to pay the majority of the loan, should they do this before my boyfriend declares himself bankrupt?
This all depends on whether the loan is secured or not. If it's secured against the house, it won't go into the bankruptcy so will need to continue to be paid (I believe)
Also as my boyfriend lives between his parents and my house can any of our possession be taken from us? I am really worrying that they may want to involve me and the kids and what possesions i have and his parents are also worrying that baliffs will come knocking at their door and that they won't be beleived when they tell them him owns nothing.
If your boyfriend goes bankrupt, they don't visit your house and take belongings.
The first thing he needs to do is speak to National Debtline or Business Debtline and get some proper advice. And he needs to clarify whether that loan is secured on his parents house or not - if it is, he should talk to them and explain what could happen.Get free advice before embarking on bankruptcy: CCCS 0800 138 1111 National Debtline 0808 808 4000
Business Debt Line 0800 197 6026 CAB Insolvency Service- 0845 602 9848"He who laughs last didn't get it!" :rotfl:BSC 134
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Thank you both for replying. We have been advised by the bank that the loan is classed as a secured loan on his parents house but is an unsecured debt to my boyfriend as it is not secured on anything he owns!! We are very confused by this! he owes £12,000 (3 quarters) to the council as he rented his business premises from them. They agreed to freeze 2 quarters for him for a period of a year but he had to keep up with all rents from then and then pay the back rent off at the years end, well hes not been able to pay this quarters rent so now owes them the 3 quarters totalling the £12,000 we went to the CAB for advice but they told us because it was business related thatthey couldn't help! Will the services you have both mentioned beable to help a soletrader?0
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Thank you both for replying. We have been advised by the bank that the loan is classed as a secured loan on his parents house but is an unsecured debt to my boyfriend as it is not secured on anything he owns!! We are very confused by this! he owes £12,000 (3 quarters) to the council as he rented his business premises from them. They agreed to freeze 2 quarters for him for a period of a year but he had to keep up with all rents from then and then pay the back rent off at the years end, well hes not been able to pay this quarters rent so now owes them the 3 quarters totalling the £12,000 we went to the CAB for advice but they told us because it was business related thatthey couldn't help! Will the services you have both mentioned beable to help a soletrader?0
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You could try Business Debt Helpline i believe they can advise on business related debt.
EBD
BR 04/03/2009 ED 03/09/2009 BSC #262'Out of the Dark and Into the Light'0 -
You say your OH was a sole trader so I assume his business is not a limited company. If it was all debt related to that are business debts and not personal. ~Laugh and the world laughs with you, weep and you weep alone.~:)
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Is the loan "secured" by a personal guarantee against his parent's house? if so on bankruptcy I think the Personal Guarantee will expire - I had 3 of them worth around £38,000 in total and mine all expired on BK. I went BK quickly before I had missed too many payments or else the bank can take you to court and get a charge on the property. It's really worth trying to find the original paperwork to find out if it's a Personal Guarantee or charge.0
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