Advice Please

Rebecca01

My boyfriend and his Mother owe nearly 50k on a failed business ( equipment) that they signed personsl liability for.

They are now liable to pay the full amount. His Mother is offering an amount to pay monthly. Which is not known if it will be accepted.

My boyfriend is making himself ill and worries about it all if the time.

He is wondering if it would be better to go bankrupt . What is the long term affects.

I would say not while it is being paid ( if accepted) but he worries he could end up with assets or a house if ever defaulted again.

Any advice appreciated.

dancingfairy

I would suggest he speaks to one of the debt charities such as National Debtline or stepchange or his local CAB for advice. They can talk him through all the options.
A dmp or payment plan may be an option, but I imagine it would take quite some time to pay the debt off and this may not be realistic (or accepted by his creditors).
I think in some circumstances it is actually better to go bankrupt and get a clean slate than to struggle on with no realistic prospects of paying it off and have it hanging over them for years.
It does, of course depend on their circumstances, whether they own a house or car, or whether they work (or are likely to work) in a profession where it could cause problems.
Being bankrupt means it will be more difficult to get a mortgage, but it is certainly possible. It may mean he is unable to work in certain roles, and in certain professions such as accountancy or law or as an MP or local councilor but this may not be a problem.
It is also worth bearing in mind how the debt is owed, if it is jointly owed then if one person goes bankrupt the other person will be liable for the lot (Which may in turn mean they then are more likely to go bankrupt).
It's definitely worth looking into further as an option for him.
Regards
df

Rebecca01

Thank you.