What to do while waiting to see CAB

andrew3002

HI, Just looking for some advice. I am self employed and employ Two workers, I have suffered very badly with depression/anxiety for the last 20 years. Recently I have been unable to work because of my condition and my 2 employees have done their best to keep the business going but due to the credit crunch and my absence business has now dropped to virtually nothing and looks like I will have to cease trading very soon, I have no income at the moment and recently paid my first visit to CAB and have now given them all the paper work that they need to proceed, they reckon it will take approx 4 weeks before they can take it any further, what I need to know is what do I do about my creditors in the mean time as I can't even offer them a minimum payment. How do I keep them off my back until CAB start to deal with it, also if I do have any money come in what should I do with it. All the worry/stress is making my mental health worse my GP has offered to have me admitted to hospital but I have been trying to resist this option but I am extremely worried about what to do about my creditors in the mean time.Thanks in advance for any advice

boschiba

I'm sure someone will be along with some sensible advice (I'm a newbie) - just wanted to say hang on in there, you're doing really well to be coping like you are. things can only get better eh?

andrew3002

Thanks, it means a lot

boschiba

yes I know, it is horrible being in this situation, and I am only just beginning to see the light. taking anti anxiety tabs but NOT sleeping, so I do sympathise.

RAS

hi andrew

This is the list of debt charities http://www.moneysavingexpert.com/loans/debt-help-plan?utm_source=forum&utm_medium=clicks&utm_campaign=resourcebar#help

CAB only has a limited number of finance advisors and they are not necessarily set up to provide business advice. Can I suggest that you ring Business debt line (listed under national debt line) and maybe ask them also to put you through to NDL regarding your personal situation? They are open until about 9pm tonight, although you would need to keep trying and would generally ring back for a full phone interview in a much shorter time than CAB.

Tixy

Hi andrew

Who are your creditors? are they banks etc? national suppliers? or local suppliers? or a mixture of all?

What stage are they at regarding debt collection? are they phoning / writing to harrass for payments? have any started court proceedings?

As well as CAB you might find business debtline a useful source of info. http://www.bdl.org.uk/ They have a sample letter section, including templates to ask creditors to hold action on your accounts and similar.

andrew3002

They are a mixture of all you mention. At this stage they are phoning and writing, I have not had any threat of court action yet

RAS

Are you operating as a limited company?

andrew3002

No, I am a sole trader. I Have just had a look at the business website and I think I will contact them asap

RAS

andrew3002 wrote: »

No, I am a sole trader. I Have just had a look at the business website and I think I will contact them asap

I do think they can give your more appropriate advice than CAB given your situation.

If you close the business, then you need to sign off as self-employed with HMRC immediately so you can put in claims for benefits.

take it gently and come back and let us know how you are going on. I recommend this forum rather than the benefits one as things can get nasty over there.

Check out www.turn2us.org.uk when you know what is happening.

dancingfairy

Hi - try not to worry too much (easier said than done I know). Creditors don't always act fast, also what's the worst they can do? write snotty letters? if they wanted to take you to court the judge would explain to them that you have no money so that's that - they can't get blood out of a stone. They may try and make you bankrupt but 1) this costs them time and money and 2) you still don't have anything to give them so they are unlikely to try this and even if they did - again you still have no money for them.
I think the first things are to get help and advice regarding the future of your business and getting all the benefits you are entitled to.
Take Care
df