Advice !!!

DAT9

Hello

I have a few questions and i wondered if people may be able to help me ?

1) I have around £70k off personal unsecured debt, shocking i know but i made a major mistake and it cost me. I am currently on a debt management program, a lot of my accounts are with Debt Collection agencies, etc. I have no CCJ's but i have missed various payments over the years, and i have default notices on several accounts. If i was able to pay off the whole debt in full, how long would my past affect me for ? It looks like i can pay off my debts in the next month or two, not via another loan but via a inheritance. I would like to have 12 months of getting back on my feet and not worrying about money and then maybe this time next year looking at buying a mortgage, i can probably put around a £15k deposit on a house, but how will my awful credit past affect me ? If it will be a problem, are there ways round it ?

2) I am also starting up a small business, i am not looking at obtaining credit but after research it appears i will have to have a family member open a business bank account for me, firstly does anybody know of a business bank account i may be able to get myself, as i say i don't want any credit just somewhere to deposit funds and write cheques, etc. Secondly, perhaps even more important, due to my financial past am i able to run a business ? I know will have to send off to company house, etc but am i wasting my time ? Can they reject me ? and thirdly i have had some interest about outside partys wishing to invest in the business, at this stage they know nothing about my personal financial situation, is this likely to affect the investment in any way ?

What help, advice, tips, etc do people have for the above ?

Thanks for taking the time to read my posting.

lynzpower

bump

I dont know the answer to these, but didnt want your question to fall off the page

jas135

your asking a lot of questions that perhaps only you can answer ?
You seem a positive person , so write all these questions down yourself and spend a morning going through them 1 by 1 .
As for your business account , approach a bank and ask them , 1 of them will say yes , even if your credit score is terrible , just explain that you only want to deposit funds and do not require a overdraft/borrowing facility .

Good luck in your business venture though and if I can give you any help or direction with any business related queries then please ask .

Emmzi

It usually takes 6 years for defaults to 'drop off' your credit report, until then they are likely to be assessed. If you want a mortgage, I'd ask on the mortgage board about sub - prime lenders - who do tend to be more expensive to borrow from but may be an answer.

You are precluded from being the director of a company if you are an undischarged bankrupt.

If i were an investor your past would sound alram bells for me personally, but everyone is different.

We might be able to help more if you could tell us if you have been bankrupt, when, have you done an IVA or DMP, and also if you have repaid all your debts.

medman

Clear the debt anyway, take a few deep breaths and then check your credit score and consider the options. There's always a way if you have money.

I wouldn't rush to buy property for the next couple of years, save and build up some history with a bank, and live the DFW way to stay on course

Good Luck & Best Wishes

CLAPTON

Usually, if you have been on a DMP you will still be able to get a mortgage although you may well need to use a broker and will need to pay interest at a premium rate. Bacially because the mortgage is secured, the mortgage company has different criteria from CC companies and are more concerned with the amount of deposit and your income.

However, as you will be self employed rather than employed this may cause additional problems as you wont have a track record so I wouldn't be too hopeful until you have been (successfully) trading for a couple of years.

I dont know anything about business bank a/cs but cheque books may be a problem (usually considered as providing credit).

How will the business be structured... as a limited company or will you be a sole trader. either way simply being on a DMP wont stop you trading.

DAT9

Thanks to you all for your advice, it is really appreciated.

In response to the questions, I have never been bankrupt, and hopefully never will be !! I have no CCJ's but i do have dedault notices. I think i am going to see how the next 12-18 months go and then maybe look at buying a place then, incidentally if you are renting somewhere does your credit rating affect that at all ? Hopefully in 18 months time, i will be debt free, have a few quid in the bank for a deposit, and running a successful business, i'm going to think positive !!!