Your advice please

Gemini23_2

Hi folks,
I have a business, a limited company with a £5k overdraft which is up to its limit and I owe about £2k in business debts.

I have subsidised my lack of income from the business and a failed business venture with credit cards and a personal overdraft. So I have credit card debts of £19k and a personal overdraft of £9500 which is also up to its limit. Plus the £5k business debt mentioned above.

Basically I have completely ran out of cash!

My finances are managed entirely separately from my partner but we do have a house with equity. He does not know the full extent of my financial problems. I pay a regualr amount to him every month towards the mortgage and bills, he pays them all. I can no longer make this payment to him.

My name is on the mortgae, although I only put £20k in versus hos £120k when we bought the house and he gave me that back 3 years ago to fund a business debt that failed.

On the business side, after 8 years of entrepreneurail endeavour which has contributed to this darn mess, I am now really on the verge of some major with venture capitalist interested but my big concern is it could all come to nothing if I go bankrupt first and I really dont know what to do next.

I will call one of the charities mentioned here tomorrow, but I would still really appreciate your help and advice/views on this so I have some idea of where I'm at and what my options might be.

Thanks loads

debtinfo

hi im afraid i do not do the question as to whether someone should go bankrupt but if you have any procedural or technical questions i will be happy to help.

BTW others may offer advice

gingerbread68

This sounds horribly similar to what I have just been through. How much equity is there in the house? This is key...

Gemini23_2

There is about 100k equity in the house but it's not really mine to use. As mentioned above I put a £20k in the house when we bought it but my partner gave me that to invest in the business about 3 years ago.

gingerbread68

If you go bankrupt your argument with the OR or Trustee as the case will be as there are assets like houses involved will be about proving how much of the house is actually yours or to be precise, how much of the equity is yours. This is where you need some real advice. Get it wrong and you may lose the house or your partner may have to buy out the interest that the Trustee would have in the property in order to keep the house. The Trustee can force a sale even though your partner is not bankrupt in order to get the beneficial interest out of the asset.

I know nothing about your business activity. All I know is that I thought I had the best idea in the world and I always seemed to be "so close" to "making it" with investors, supermarkets, etc. Unfortunately it never made it. You may well be really close and you may feel that you cannot stop now because of how much you have put it. Make sure you are being honest with yourself about the real probability of your venture being a success. If it is that much of a cert, your bank will help, or maybe your partner. If not then it is your belief that you have borrowed money against and continue to hedge. I am talking from experience here.. I was a gnats whisker away from losing the roof over my wifes head. The Trustee wanted 10K in the end for the equity in the house. My family came up with it. Make sure they don't come at you for 100. The house market is arguable bottoming out now.

gingerbread68

Also, maybe talk to your partner about how bad it is. Although your finances are seperate in your own eyes, they are not legally (assuming you are married or similar). He or she will undoubtedly get dragged in at some point and will be less appreciative and understanding of the situation the later he or she is told about it.

sparkle83

First and foremost would be explainng to your other half whats going on... There may be something he can think of that may help because he knows the situation better. If you leave it, and he finds out another way, he will be hurt.

good luck hon

fiveyearplan

I agree with the others - you need to let your OH know your situation. Also think long and hard before borrowing anymore especially from him. There is no point in paying some off if you can't pay it all and end up bankrupt anyway. I wish I hadn't borrowed the last £15k from my dad and £8k from stepdad. I should've bailed out earlier.

charliedavis

I too agree with the others, I feel really guilty about accepting another £20k from my Mum to help prop up a limited company that was failing badly. It was then wound up in April and I subsequently ended up BK in June. I know now I should have ended the company earlier (but was advised not to by accountants who insisted the business was profitable - that accountant too lost about 4k in unpaid fees.) Deep down, you will have a gut feeling that tells you whether or not the business is viable, trust it! Let your OH know the situation as the stress you are under WILL be showing.