shellshocked and devastated

pennyshort

hi
well i feel so damn stupid so please be kind - am shedding enough tears to sail a fleet atm.

where to start? My OH has been hiding the fact that we have spent money beyond our means for years I guess. I had b.c and this was followed by my mothers death and he has been protecting me since i assume

My oh is an IT consultant, we have a limited company that we are both directors of. Our year end is Jan/Feb

Business

My oh hit me 3 days ago with the fact that the business owes £20 000 corporation tax from last year (and another £20 000 in Jan 2011 will be owed). We do not have the funds to pay. He has phoned them up and asked to pay the initial £20 000 billed over 10 months, even though our personal financial situation does not allow this, he thought we could take a loan out. We are awaiting a reply. He informed me that they also had come to the door a few months ago and he has been putting paying or comms with them off, so the letter was a final demand - bailiffs in etc.

The Business makes £118 000 pa before all taxes etc. Oh is still in a contract and hopefully will continue working.


Personnel

To add to the mix he also produced a letter from the tax people saying that I owed £5 000 in back tax and one showing he owed similar. Again this was a final demand, he had been ignoring this too. I phoned them up in a panic and the result is that we have agreed to pay roughly £2000 a month till Dec (to include payment on account) but again will be faced with repaying a similaramount in Jan 2011.

We own our house which does not have much and actually may be in negative equity.


We pay ourselves a monthly joint wage of £821 and monthly dividend of £5600.

Our main monthly debts at the moment are -
£5500 overdraft,
£21 000 on 2 credit cards,
£2300 mortgage
loan of £320 (of which will be paid of in 2 more payments).
As well as all the usual basic expenses.

Our assets are 2 cars - £6000 and £500 possible resale, company pc and laptop and of course our house.
No savings.

I have made an appointment with CABS but it is only an assessing one to direct us to the right cabs person and that is in 2 weeks so may be a month before we see anyone, by which time I am sure bailiffs will have taken everything.
Three days a go (mon) we phoned Business Debtline and all though very helpful he listed IVA, Bankrupcy, Strike off as options- he is sending us a pack then he said to ring back when we have decided what to do? I contacted the great people at cccs here who said wait for the pack and keep talking to the debtline, which I know is the case but atm I just dont know where to turn and want to be proactive.

I have read up as much as I can as i assume that the info online will be the same as the debtline sends, but it only makes me more confused and frightened.I feel that my world is about to crumble but not when or how. I am desperately keeping this from my adult children, but its so hard.

any advice would be gratefully recieved

many thanks in advance from a shellshocked and devastated idiot.

curly04

Not read it yet but lets start with a big

{{{{{{{{{{{{{{{{{{{{{{HUG}}}}}}}}}}}}}}}}}}}}}

Sunnylooloo

Hi PS

firstly you have made the right decision to go and see the CAB and also posting here.

I'm just bumping you up as I saw your title and I am a bit busy today but didn't want to read and run, hang around and someone will be here soon with some advice.

Take care and don't worry we have all felt exactly like you are feelingnow

LL
x

Sunnylooloo

curly04 wrote: »

Not read it yet but lets start with a big

{{{{{{{{{{{{{{{{{{{{{{HUG}}}}}}}}}}}}}}}}}}}}}

took the words out of my mouth curly!!

xx

curly04

Hey huni

Right the CAB can not help you with the business debt
you need to contact the business debt help line - sticky on the front page - someone will post the link for you very shortly

I know this is hard for you, mine wasn't business but I've been in your situation.

All I can say at the moment is make sure you get some professional advsie from one of the debt charities.

Good luck, Keep posting

Curls

dancingfairy

Have you worked out all your incomings and outgoings? to see how much spare you would have for debt repayments?
Have you pared down all your personal expenses? 6000 a month is quite an income (if I'm readng it correctly).
Your first priorities from the business point of view is sorting out all the tax.
Have you tried speaking to the business equivalent of National Debtline?
You say your Oh is on contract - I don't know anything about business and how much work is needed as a director but are you able to fit in a job around being a director at all to bring in some income in the meantime?
Good Luck sorting it all out.
df

IF

Hello pennyshort and welcome, As everyone has said please contact BDL for advice. But keep posting on this thread for help and a good old chat, we are all very good listeners and know how you are feeling.

Business Debt Line please click on blue link below

http://www.bdl.org.uk/

Best wishes
If...x

Soubrette

pennyshort wrote: »

Three days a go (mon) we phoned Business Debtline and all though very helpful he listed IVA, Bankrupcy, Strike off as options- he is sending us a pack then he said to ring back when we have decided what to do? I contacted the great people at cccs here who said wait for the pack and keep talking to the debtline, which I know is the case but atm I just dont know where to turn and want to be proactive.

I just thought I would quote this from the OP for the benefit of others

Sou

pennyshort

Thanks so much everyone.

Curly04 and Dancingfairy , yes we contacted Business Debtline on Monday and are awating a pack, I am just wondering if they do (speak to) anything/one on your behalf, or if then its up to us to read through the options and make a decision alone, I just am so uncertain where to turn or to wait for this pack in the hope that some glimmer of hope shines out.

I am not wanting someone else to take responsibility of course. it is our debt, but having spoken to the tax people I was reduced to tears as they told me off and harangued me like a 5 year old for half an hour and I am so frightened to speak to them again in case they decide that repayment options not only cannot be extended but that would be stopped and immediate payment demanded.

My Oh and I have just sent an email to our accountant explaining the situation - but she is on holiday so had to write to a partner he has not dealt with before, as I guess she needs to be kept informed too.

I am a gardener and work part time, on £6,50 per hour but as a result of surgery my arm swells up if I use it too much (I had my lymph nodes removed) so I have been only working a day a week since. I have applied for call centre jobs online this week and am going to the jobcentre on Tuesday - again its this waiting for the pack thing as my Oh said if I get more work that may affect tax repayments?

Also we are still awaiting hearing from the The revenue about Corporation Tax repayments and OH does not want to chase this as I think he is feeling the same way -0 that all offers may be withdrawn,
Sorry I sound like a useless idiot full of excuses.

IF

Soubrette wrote: »

I just thought I would quote this from the OP for the benefit of others

Sou

Soubrette......I hang my head in shame!!! Note to self read OP's post correctly!!!

Sunnylooloo

Don't feel useless!!

it is horrible these people have the capability to make you feel like - yes you know you got a problem but at least you facing up to it. I know how easy it is to get reduced to tears!! We can all vouch for that.

Don't worry we're all here for you

xx