Debt help please

mardatha

This is for my neighbour's son, so I haven't got a lot of detail and don't like to pry..
but she is really worried so I told her I would ask you brilliant lot ..
He is self employed as a builder.
He two bank accounts both with the same bank (I think RBS.)
He has 2 mortgages, one on each account. One is covered by a tenant who pays rent.
He has an O/D of £5 grand (at the limit) and a £15 grand loan.
He is paying up a van which he can hand back at any time but then wont have wheels for work.
He has a tax bill from last year and various suppliers bills, and he has some work but not a lot of it.
He cant pay any of them - what can he do to sort out this mess? She's really upset.

Mr_Max

Sorry, but I'm not sure exactly which part is the problem. The mortgages? The O/D? The loan?

mardatha

He cant pay any of them! lol sorry I wasnt clear.

rising_from_the_ashes

I think he really needs to seek professional advice - especially being self employed.

Could you print off the sticky thread about free impartial advice (at top of board) and give it to you your friend to pass to him?

mardatha

She said his business advisor told him they could offer him a loan which he doesnt want to take as it is just more debt.

rising_from_the_ashes

I would agree that doesn't seem the most sensible option!

However, I guess it depends on the strength of the business, whether it's a temporary cash-flow problem etc.

Would he be able to sell the house with the tenant in for a profit and use that to pay off some of the debts?

I realise that this might be a long term investment meant to make a large profit in the long term, but, if he's really struggling just now it doesn't make sense to struggle to pay things if he's got an asset he could sell (and without having to make himself homeless)

mardatha

Ok thank you I will write this down and tell her

RAS

mar

Give her these links http://www.moneysavingexpert.com/loans/debt-help-plan?utm_source=forum&utm_medium=clicks&utm_campaign=resourcebar#help

CCCS and NDL both have specialist Scottish sections, as the law is so different. He may need Business Debtline as well as NDL or CCCS.

If he cant talk to her about it. she can drop a copy on his table for him to read.

The other essential thing he needs to do is to get a new basic bank account with a bank that has no relation with his existing bank. That means that if he has to use a debt solution, he can get paid into there without the creditor nicking all the money (called offsetting) and leaving him nothing on which to live.

mardatha

:j:j:j brilliant help as usual, ty RAS!