Very complicated and maybe illegal but... can I...

TheWaltons_3

My partner has a business. I work for him. The business is in his name.

I thought, I could get a 10k loan, buy the business off him... the 10k would pay HIS credit card debt... helping us to live and being a big weight off his mind.... BUT...



.. could I buy the debt from his business, meaning the loans from the companies, as I would be the new owner? There are two loans it. One is something on HP but that is jointly owned


And, if I were to make MYSELF bankrupt... say.. in 6 months time... our home would be safe because it is in his SOLE name...

Bear with me... I'm desperate... !

Any advice?

allofadither

I can see why you would want to do that BUT I would also say you were on dodgy ground. The OR would definitely question your actions and you might earn yourself a BRO/BRU. If that doesn't bother you and wouldn't impact on your life then I suppose you could do it, but it's risky...just my personal feeling.

When you're desperate I also understand that a person will consider anything to alleviate their problems, so I'm not judging you.

Conor_3

Be VERY CAREFUL. Doing all this in 6 months could be viewed as doing it fraudulently. If I can see what you're trying to do, so could an OR with your full financial details in front of him.

TheWaltons_3

Right, to both of you....

... I am desperate. Can you tell?


And secondly, well if I did it later than 6 months down the line... would it look any better?


As for buying the business, I run it.. own half of something worth thousands that we use there... so it would make sense for me to take it all on as my husband works full time and has nothing to do with it in the first place.

allofadither

Hi,

I may have missed something cos you've got a couple of threads going, but we could do with knowing exactly what your circumstance are, like how much you owe and who's name the debts/assets are in. It will make it easier to understand and give advice.

TheWaltons_3

allofadither wrote: »

Hi,

I may have missed something cos you've got a couple of threads going, but we could do with knowing exactly what your circumstance are, like how much you owe and who's name the debts/assets are in. It will make it easier to understand and give advice.

Majority in his name... just under 40k.

I am just wanting to help our situation without losing our home, which is for my children.

Owed on house via mortgage £130'000

House worth £140 according to mortgage report, BUT it now has big extension and when the bloke came around.. the whole ceiling and plaster had been removed from bedroom revealing cracks in roof and obviously showed house in ver bad state of repair. House similar up for short of £170'000

Debts of his - approx 40k

If he went BR, we could lose the house.

allofadither

Are the 40K debts unsecured?

rog2

Is the business a limited company, in which case you could 'BR' the company, or are all the debts subject to personal guarantees?

TheWaltons_3

ALL debt is unsecured.

The business is Sole Trader.

Much appreciated for you help guys.

rog2

TheWaltons wrote: »

The business is Sole Trader.

O God - Deja Vu :eek: I 'wound up' my limited company six years ago, because of the paperwork and the fact that I had to 'guarantee' all loans personally. I was advised that I would be better off as a Sole Trader.

I needed the advice, that you are seeking, six years ago.

I wish you good luck.

allofadither

I know this is difficult for you, but the truth is that BR can solve some of your problems but not all of them.

I understand your desire to keep your home, and I can see how it would be so much easier to have the debts in your name and for you to go BR. But I don't think that's going to be possible so you have to make realistic choices.

If it's a while since you had the house valued then maybe another valuation wouldn't hurt, then you'll know exactly what the equity is.

If you really can't bear to lose the house then BR may not be the right solution for you. Have you taken any advice from the CAB, CCCs or Payplan? Have you considered the other options like an IVA or DMP. Thesw wouldn't involve losing your home.

BR can seem like a quick fix, but it can also come at a price.