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Terrified of loosing our home....

worriedinyorks
Posts: 2 Newbie
Hi Everyone,
I'm not sure I'm posting this request for help in the right location but here goes.
To cut a long story short.....
....in early 2011 I decided to call in a reputable insolvency firm on the advice of my accountant as I was unable to recover my business from the decline we had been experiencing. Coupled with my young son falling seriously ill, I literally had had enough of the stress, struggle and upset of running my own business in these difficult economic times.
When I originally set the business up, I had minimal assets and lived with my girlfriend. I had no house or car, just some savings. The Bank was able to help me to secure the additional funds I needed through the DTI Small Firms Loan Guarantee Scheme.
Unfortunately, through the course of running the business I have signed two personal guarantees (one relating to an additional loan, again underwritten by the DTI to facilitate expansion and another relating to our business overdraft) Each time I applied for additional borrowing (loan and the overdraft) I supplied up to date Management Accounts, Balance Sheets and detailed Sales Forecasts.
As the business has now been formerly wound up, I find myself struggling to gain employment and have no income and I'm being chased by the bank for the personal guarantees.
I’m currently being supported by my wife as I have no income of my own, I'm not even eligible for Income Support/Job Seekers Allowance/Benefits - as I made no NI Contributions, drawing no wage, salary or dividend from the business as I was determined to pay back what I owed as quickly as possible!
I’ve followed the advice of both the CCCS and the Business Debtline, completing Income & Expenditure Forms, making monthly payments and keeping them up to date with any changes in my circumstance.
However, I have received numerous letters from the Bank's in-house solicitors, a Statutory Demand (which has now expired!) and just recently my last three monthly payments have been refused and returned by the Bank.
Both CCCS and the BDL have suggested that I should continue to correspond with the Bank, sending a monthly payment and highlight that I will contact the Financial Ombudsman should they continue to refuse to accept my offer of payment.
However, I’m now very worried that the Bank will try to prove I have an interest in what is now our home. Bought by my wife, in her maiden name, since re-mortgaged in her name alone, to which I have never been able to contribute to either the mortgage or upkeep, as I have never drawn a salary or dividend from the business.
I’ll follow the advice offered by CCCS and BDL, monthly correspondence with the Bank, making monthly payments and returning the previously refused ones but I am now terrified that the Bank are going to try to take our home!
I'm not sure I'm posting this request for help in the right location but here goes.
To cut a long story short.....
....in early 2011 I decided to call in a reputable insolvency firm on the advice of my accountant as I was unable to recover my business from the decline we had been experiencing. Coupled with my young son falling seriously ill, I literally had had enough of the stress, struggle and upset of running my own business in these difficult economic times.
When I originally set the business up, I had minimal assets and lived with my girlfriend. I had no house or car, just some savings. The Bank was able to help me to secure the additional funds I needed through the DTI Small Firms Loan Guarantee Scheme.
Unfortunately, through the course of running the business I have signed two personal guarantees (one relating to an additional loan, again underwritten by the DTI to facilitate expansion and another relating to our business overdraft) Each time I applied for additional borrowing (loan and the overdraft) I supplied up to date Management Accounts, Balance Sheets and detailed Sales Forecasts.
As the business has now been formerly wound up, I find myself struggling to gain employment and have no income and I'm being chased by the bank for the personal guarantees.
I’m currently being supported by my wife as I have no income of my own, I'm not even eligible for Income Support/Job Seekers Allowance/Benefits - as I made no NI Contributions, drawing no wage, salary or dividend from the business as I was determined to pay back what I owed as quickly as possible!
I’ve followed the advice of both the CCCS and the Business Debtline, completing Income & Expenditure Forms, making monthly payments and keeping them up to date with any changes in my circumstance.
However, I have received numerous letters from the Bank's in-house solicitors, a Statutory Demand (which has now expired!) and just recently my last three monthly payments have been refused and returned by the Bank.
Both CCCS and the BDL have suggested that I should continue to correspond with the Bank, sending a monthly payment and highlight that I will contact the Financial Ombudsman should they continue to refuse to accept my offer of payment.
However, I’m now very worried that the Bank will try to prove I have an interest in what is now our home. Bought by my wife, in her maiden name, since re-mortgaged in her name alone, to which I have never been able to contribute to either the mortgage or upkeep, as I have never drawn a salary or dividend from the business.
I’ll follow the advice offered by CCCS and BDL, monthly correspondence with the Bank, making monthly payments and returning the previously refused ones but I am now terrified that the Bank are going to try to take our home!
0
Comments
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Can your wife prove that she alone has paid for everything relating to the house? In other words, the mortgage, insurances, repairs and bills? Are there any payments going either from yourself or your business into your wife's bank account?When I joined, I needed a name. The forum members gave one to me...I am INAN
"Fortunes ebb and flow and a boat must move with the tide and be thankful that it floats." Judith Allnatt0 -
Hi,
If I read this right, you never took any income from the business therfore could never have contributed to the mortgage / household to obtain any beneficial interest.
If that is the case then I doubt you have anything to worry about.
DDDebt Doctor, Debt caseworker, Citizens' Advice Bureau .
Impartial debt advice services: Citizens Advice Bureau Find your local CAB *** National Debtline - Tel: 0808 808 4000*** BSC No. 100 ***0 -
You're right, I was unable to contribute, as I refrained from withdrawing any monies from the business. Just terrified this is the Bank's next step.
I'm really unsure of what to do now, this is an awful mess and I'm really worried about this substantial debt hanging over us indefinitely.0 -
Someone who may be more up to date with DTI regulations may be able to comment further but , unless things have changed, I was of the understanding that under the Small Firms Loan Guarantee Scheme banks could not ask for personal security as 70% of the loan was already secured by the insurance policy underwritten by the Government. It may well be that you have a personal guarantee for the loan but is it not for 30% of it rather than the whole balance. As I said I am not 100% certain but perhaps others who know the current rules may wish to comment further.0
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