not paying loans advise

proprint2005

Hi All
Just need some advice plz, CAB didnt really help me!!
I currently have a small business that is going down the pan, mainly because of the loan payment coming out each month, i have aprox 40k non secured bank loan, 18k personal loan (non secured) and three credit cards, all are with the same bank as are the loans, my business is a sole trader. I am now coming to my tether as i have no monies, orders have just dried up.
My question is if i fail to pay my loans, and credit cards, what can the bank do???. i have a mortgaged home, nothing flash, i owe aprox 55k on it and its worth about 60k.
just to note, i have not yet defaulted on anything, but it is coming
Any advice would be much appreciated

Dovah_diva

They could declare you bankrupt.

gb12345

proprint2005 wrote: »

Hi All
Just need some advice plz, CAB didnt really help me!!
I currently have a small business that is going down the pan, mainly because of the loan payment coming out each month, i have aprox 40k non secured bank loan, 18k personal loan (non secured) and three credit cards, all are with the same bank as are the loans, my business is a sole trader. I am now coming to my tether as i have no monies, orders have just dried up.
My question is if i fail to pay my loans, and credit cards, what can the bank do???. i have a mortgaged home, nothing flash, i owe aprox 55k on it and its worth about 60k.
just to note, i have not yet defaulted on anything, but it is coming
Any advice would be much appreciated

They will start off defaulting you, and then probably refer you to debt collectors.

Then the possibilites are going for a CCJ, but with your apparent lack of assets, they may not bother as they would just be wasting money with no prospect of getting anything back. Bankruptcy is also a possibility - especially as you appear to owe one creditor c. 60k.

Your best bet would be to speak to one of the debt charites.

[Deleted User]

At minimum have you tried speaking to the bank or who you owe?
CAB is so over-rated, you have to play dumb ''I don't know" to get any help it is sad, (my personal opinion) try one of the other debt charities? before giving up

gardenlady_2

My partner was in exactly the same situation as you 6 months ago, all debts linked to a failing business.

You should phone all the providers and tell them the situation. They should accept at least a short period of lower payments and frozen interest. Phone them tomorrow and explain. They are much more understanding if you keep them informed and updated as soon as you realise there is a problem.

Then phone Business Debt Advice line- they are brilliant. Are you a limited company? Are all your debts business related debt that you guaranteed? You will have to pay them even if you are a limited company- but they will accept installments if you have any sort of income, ie a partner with income, if you can get a job etc. This is called a debt management plan. There are other options too, the adviser will take you through what is most suitable for you.

My partners limited company went bust and we were left with a huge amount of debt. The credit cards went on a debt management plan. The business loan was a pain as it is not covered by the consumer credit act, they wanted to put a charge on the house and carry on charging interest. He borrowed the money and offered a full and final settlement which they accepted.

Also, check out if you are entitled to any redundancy money from the government. In some cases sole traders can get this if their business fails.

harrys_dad

Deleted%20User wrote: »

At minimum have you tried speaking to the bank or who you owe?
CAB is so over-rated, you have to play dumb ''I don't know" to get any help it is sad, (my personal opinion) try one of the other debt charities? before giving up

That is a terrible generalisation to make as regards CAB. I admit to some bias here as I spent four years as a volunteer unpaid generalist advisor, helping over 1800 clients in that time, many of them with debt problems, and virtually all of them appreciative of the help received.

The key issue here is that CAB are not allowed to help people with business debts, and clients who are self employed are referred to business debtline.