Help needed please!

yeovilmac

Morning everyone

I'll try and be as brief but detailed as possible about my situation and any advice given will be gratefully received... ;D

I am a self employed courier turning over £1,200 a month which clearly isn't enough. Out of that comes the following.

Rent (inc rent,water,gas,electric and council tax)   £500
Petrol for car (my business remember) £300-£400
Car insurance  £60
Car Tax  £12
Business Loan £100
Four small creditors (Provident,BT, Tesco and a debt to Avon)  £10 a month each
Food  £100 approx
Mobile phone bill £50 amonth ( PAYG, no contract, no home phone)

I don't drink or smoke and my only luxury is following Yeovil Town. I go to one or two games a month.

I have no authorised overdraft at the bank as I have been uncreditworthy in the past. However I am £500 o/d at Lloyds on my bus a/c and £100 o/d in my Halifax personal a/c which I don't use anymore. My Lloyds personal a/c is okay.

Now the bad news. In 2003 I took a loan out with Welcome (yes, I know!! ) and straightaway lost 75% of my courier business. I defaulted on the loan and now they have sent in a debt collector (Direct Legal and Collections) to recover. They have turned down my offer of £10 a month which is what my other creditors have accepted.

I also ran up an overdraft in 2001 ( told you I was uncreditworthy now) for £2,750 with Abbey. This morning was the first letter regarding the loan I have had in two years and its from Direct Legal & Collections as well, so they are bound to refuse my offer of repayment, aren't they?

The most drastic option is to declare myself bankrupt but I am loathe to do that because of the circumstances. I don't really want to lose the business but its not looking financially viable at present.

Thanks for taking the time and trouble to read this post - I genuinely would appreciate any comments or advice.

Rafter

Seek some advice from a charitable debt coucilling service or Citizens advice.

From what you say it sounds like you could earn more as a professional driver working for someone else or as a taxi driver?

Losing your business doesn't sound a big deal. From what you say you aren't turning over enough to cover the costs of your vehicle, fuel and other costs and generate a reasonable income for yourself.

I don't know if bankruptcy is the right option, but it doesn't look like you can trade yourself out of your current situation easily. Particularly when your current vehicle needs replacing.

Good luck.

R.

yeovilmac

Particularly when your current vehicle needs replacing.

Good luck.

R.[/quote]

Cheers for that. The vehicle is sort of leased ( I do one days work a week, £75 approx) and this covers the vehicles lease, maintenance and servicing. The man I lease it from supplies me with 90% of my work too.

Jen_Jen_5

you need to seperate your business money from personal money.

The business turnover is £1200 per month and the costs are ?

Does this leave you enough money to pay yourself and live ie pay rent, food etc?

Even though the debts are business related you are personally liable if business ends (i assume you are not a ltd company).

After answering these questions is the business viable? would it be better for you to go and work for someone else and earn more money? If this is poss. you will have more money to clear the debt ie earning £1200 per month rather than turnover.

Most important question is the business worth it, can you struggle through this difficult time and in a few years be achieving what you wanted when you started the business (being a millionaire i assume )