Car, House Business?

loopy1_2

Hi! really hope you can help with some advise. I've just started a small business selling skin creams on the internet. It's going but slowly and is funding itself. My husband is considering bankruptcy and I'd like to know how it will effect me, my business, house etc. Brief outline:

The business was started with a cash loan from my husband (9K) about 4 months ago.... does this give them a claim on it?

We have 2 cars one on rental (husbands) and one in my name for 2 years that was bought with an unsecured loan in my husbands name, still current.

The house is in joint names with about £10k equity, someone suggested putting it in my name and taking husband off the deeds.

I have a stock of about £2K which I hold at the house, will they take that or have any claim on it?

How will it effect my credit rating? We have young children and I'm terrified of losing the house, husband can pay the mort but drowning after work change to pay credit cards etc.

Help... really at my wits ends.

Thank you!

Photo_Stylus

Suprised nobody has answered you yet, Must have caught them on a sleepy night.

I presume they would class the money you owe as an asset, Cars paid for in his name, Also assets. As would the house.

I think you need to provide more information for people to advise you.
If the debt is considerable and you really have no means to pay it then bankruptcy maybe your only option, BUT you need good advice due to your circumstances.

You cannot take his name off the deeds as this would be considered as hiding assets.

Good luck.

fiveyearplan

loopy1 wrote: »

Hi! really hope you can help with some advise. I've just started a small business selling skin creams on the internet. It's going but slowly and is funding itself. My husband is considering bankruptcy and I'd like to know how it will effect me, my business, house etc. Brief outline:

The business was started with a cash loan from my husband (9K) about 4 months ago.... does this give them a claim on it?

We have 2 cars one on rental (husbands) and one in my name for 2 years that was bought with an unsecured loan in my husbands name, still current. It seems both cars belong to your husband if he paid for them. It doesn't matter whose name is on the logbook. However nothing about cars in bankruptcy should ever be taken for granted!

The house is in joint names with about £10k equity, someone suggested putting it in my name and taking husband off the deeds. No can do! Have you had a valuation recently. Look up https://www.nethouseprices.com and see what similar ones are going for in your area. If it is really £10k then you could buy back his benefical interest for half that (you could also negotiate that the figure is after estate agent fees and moving costs - which would then probably make it £0!)

I have a stock of about £2K which I hold at the house, will they take that or have any claim on it? It is your business so, no they won't take it from you but I am concerned whether or not they will expect his £9k back.

How will it effect my credit rating? We have young children and I'm terrified of losing the house, husband can pay the mort but drowning after work change to pay credit cards etc. With the small amount of equity you have in the house it is very unlikely you will lose it. If worse came to worse could you come up with a couple thousand pounds to but his equity?

Help... really at my wits ends.

Thank you!

If you have any joint accounts (like mortgage) then you will be financially linked so his BR could affect your credit rating but to be honest that should be the least of your worries. Your husband's health and well being is far more important than your credit rating.

Have you phoned Business Debt Line? The contact details are in several people's signatures or on a sticky on the front page of this forum. Has your husband phoned CCCS or National Debtline or CAB for advice? Next thing is read, read and read on here so you are well informed - it makes the process a lot less scary if you know what is going to happen at each step. Remember its only debt and money - your family will be fine!

peachyprice

Was your husband technically insolvent when he lent you the £9k?

The OR will go back over 12-24 months of bank statements etc and will be able to see when your OH money troubles began, if he was already having probems giving you the cash loan could be seen as disposing of an asset, the OR may ask you to pay it back and your OH could be in trouble for lending you money while owing his creditors.