Terrified We'll Go Bankrupt Soon - Any Advice?

oompahloompah

Issue resolved, thank you

NeverAgain_2

You are £28,000 in debt, less £4,000 if you sell the assets of the business.

That leaves £24,000 which presumably you regard as being split equally among the four of you.

Each person therefore owes about £6,000, which is not a lot to go bankrupt for, and should be repayable.

The bank/loan lender will regard each of you as responsible for the lot, but if everyone takes responsibility for their 'share', the situation looks capable of being sorted.

JasX

indeed it seem not an unmanageable debt pile but you need to take a hard look at the fundamentals... you have a business making 20k per year, 10k per couple.

you need to be either living within that and not racking up 'lifestyle' debt drawing more than that which threatens to sink the company (if called in by the bank) or taking action.

Is the company fully engaging all 4 people involved? if so unless you're expecting a drastic uptick in business i'd suggest one of each couple look for a job elsewhere while the business continues to turn over and give it a chance at survival and only return when its grown enough/things have picked up enough for it to support all 4 partners.

debt_doctor

How much equity do you have in your property? This would determine how much at risk your home would be in BR (should you go down that route).

Regarding benefits, if the household had nil income then you would be entitled to means tested benefits such as income based JSA and child tax credit. Also Child benefit (which I assume you get now) I would expect that a couple with 2 children under school leaving age would get approx £230 - £240 per week with no council tax to pay and after 13 weeks potential help towards the mortgage.

Also, bear in mind that self employed people are eligible for working tax credit, and you may have been entitled to this for some time (looking at your figures)

DD