Which way to turn??

ktw_3

Can someone tell me, if i choose to go down the bankcruptcy route, what is my first step? I realise that the personal and business side are seperate, but as a limited company what do i do?
x

SunderlandBlackCat

Hi there,

I was in the same situation as you 5 years ago, Business struggling as several of my clients went under owing me money, took out a loan in my name to try & keep the business afloat, then I had a car crash that took me out of commission for 18 months so I couldn't work or save the business.

I used a card to pay loan the loan payments, another card to pay that card, then took out another card to pay that card until I had 4 cards all paying another cards minimum payments each month & the debt was snowballing upwards to at least £15k & probably closer to £20k at its worst.

When I had my first flicker of a Lightbulb Moment the business had already gone under but I was also advised to declare personal bankruptcy as I was borderline on whether I would qualify for an IVA.

I managed to avoid Bankruptcy/IVA because at that point I'd never actually missed a payment on anything & managed to get a new job although poorly paid so my credit rating was quite good & I gradually managed to get my debts onto lower APR's & create some maneuvering room.

I'm now 5 years older & wiser, have attempted to consolidate twice with disastrous results, learned to live on a budget & snowballed/shuffled onto lower APR's several times in the last 3 years since the lightbulb came on permanently & changed jobs into a better paid roles & the end is now in sight.

It might be that bankruptcy is your only option but do some research yourself & get second opinions. Whichever route you end up taking whether it be bankruptcy, IVA, DMP or managing the debts yourself theres always someone on the board around to give support.

Good Luck

OberonSH

I'm in retail, and luckily my FIL has agreed to help me out with a small investment to buy stock.

My advice would be - look around for a 'business angel' these are private invetors that will invest in yor business if youcan make a strong enough case.

Have you considered 're-buying' your business? Sounds a bit odd, but bear with me. When my shop got into financial difficulites I hated the place, and basically stopped trying. So when FIL promised the investment I basically 're-bought' my business. I pretended I'd just taken over, and started looking at new products, advertising venues, and ideas to help boost profit. Re-examined prices, that sort of thing. It's not completely turned us around - with such a poor retail year it wouldn't, but it's certily helped a lot.

ktw_3

Thanks again for the messages. Believe it or not, its comforting to know that although you go through your own personal debt alone, there are plenty out there who are in or have been in similar circumstances.
From a personal point of view, i feel i have been struggling with the business for the last 18months or so and have kind of lost heart in it and now feel that i want out. I appreciate the advice about trying to turn it round with investment or buy back but, cards on the table, i dont think my heart and soul would be in it anymore, plus i dont want the stress anymore.
On a brighter note, i had a phone call today and someone is interested to buy the business and is coming to see me monday. So I am now keeping my fingers, toes and anything else I can cross, crossed! I wont make any decisions until after this meeting, try to keep positive and see what next week brings.
Thank you so much everyone who has given me advice, i appreciate it more than you could know.
Heres hoping xx

OberonSH

Yay!! Go you. I tried to sell mine, but kept getting such timewasters I just gave up.

ktw_3

Well, heres hoping - the drinks could still be on me!x