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Personal guarantee for Business Overdraft
shell67_2
Posts: 3 Newbie
Hi all, I'm new to this forum but would greatly appreciate any advice or comments with regard to my situation.
My Husband and myself had our own business up until March 2012 when devastatingly we had to put it into liquidation. In 2009 we took out a business overdraft as the recession was taking it's toll. We had to give personal guarantee's for this overdraft and are now in debt to HSBC for £28,000 they wanted us to pay back £470 a month over 5 years which we had no way of paying so they handed the debt over to the Metropolitan Debt Collection Agency. We have explained to them that the company is still in liquidation with money due to come in which the bank get second call on after the liquidators take their fee but we don't know at this point what that amount will be which will obviously reduce the overdraft amount. We have both now found employment but my Husbands money is swallowed up totally on the mortgage and bills leaving my money to live off. Without saying at this point what surplus money we have left at the end of a month does anyone know what sort of amount they will be looking for each month? We have never been greedy people and have cut back on everything we possibly can. I'm just so worried that they will take every spare bit of cash we have and we will forever be going without.
I would be very grateful of any advice
My Husband and myself had our own business up until March 2012 when devastatingly we had to put it into liquidation. In 2009 we took out a business overdraft as the recession was taking it's toll. We had to give personal guarantee's for this overdraft and are now in debt to HSBC for £28,000 they wanted us to pay back £470 a month over 5 years which we had no way of paying so they handed the debt over to the Metropolitan Debt Collection Agency. We have explained to them that the company is still in liquidation with money due to come in which the bank get second call on after the liquidators take their fee but we don't know at this point what that amount will be which will obviously reduce the overdraft amount. We have both now found employment but my Husbands money is swallowed up totally on the mortgage and bills leaving my money to live off. Without saying at this point what surplus money we have left at the end of a month does anyone know what sort of amount they will be looking for each month? We have never been greedy people and have cut back on everything we possibly can. I'm just so worried that they will take every spare bit of cash we have and we will forever be going without.
I would be very grateful of any advice
0
Comments
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I don't think there are any easy answers for this situation.
You can only offer them what you can afford, they know just as well as you that if they try to take more than you can pay they will get nothing.
Now the account is with collections, I would expect them to accept a far smaller monthly payment.
Find a figure that you can afford to pay, don't try to pay too much and fail, start with a good solid figure. Write to them and put this offer to them.
That's what I'd be doing, if indeed I was looking to clear the account. You may decide to look for other debt management options???0 -
Thank you very much for the advice, its very much appreciated.0
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