Feeling Terrified

Samoens12

Hi All

I have been living with money problems for a number of years now - I have a small business that has been struggling and some investments in France that have caused big problems. I just dont see any light at the end of the tunnel. I have been marketing my business since February but although there has been interest there have been no offers.

My husband is aware of the issues but is not a talker so I get little support - he is very laid back and always thinks things will resolve themselves whereas I am more of a worrier. There is plenty to be worried about with debts of around £60k.

I have been trying to use meditation to reduce my stress but am at breaking point now. I just want to run away and hide and I know that wont solve the problems but I dont feel strong enough to face up to them.

IVA's or bankruptcy are a probable route now - can someone please tell me there is life after this and how you cope in the interim? I am scared about losing the house and I guess theres a lot of pride at stake too (I need to get past that) but I have always been independent and survived all that has been thrown at me and there's been a fair bit This time I feel like I cant survive which is so alien to me.

Sorry for the ramble but any advice out there?

AndyBSG

First question, are the debts in your name or in the business name and is the business a limited company or are you a sole trader?

Samoens12

I am a sole trader - so debts are in my name

owlet

I can't offer any advice with the debts because I'm not familiar with businesses but I just wanted to say keep your chin up. There are ways with IVA & bankruptcy - it wont be easy but there is light at the end of the tunnel. You will get great advice & support here. Keep posting x

Samoens12

Thank you. I know I have to face up to this but the support bit it what I am missing so your message means a lot. I've always been very strong and independent so this is such a hard thing for me to admit I cant cope!

egrescrimp

I would recommend speaking to the Business Debt Helpline: https://www.businessdebtline.org/

The advice is free and they should be able to help you decide what the best option is for your circumstances. I'm not long discharged from Bankruptcy, life does change a lot when you go bankrupt and in my case for the better! get used to living solely on whats in the bank and not various forms of credit

I was a worrier too prior to bankruptcy, I'm come out the other side and I'm doing just fine and I'd say you'd do just fine if you went bankrupt too

tigerfeet2006

Business Debtline is definitely your first port of call.

Is there any equity in the house?

Samoens12

I did speak to Business debtline but didnt find I was getting much help - I should try again and maybe a different adviser might be better for me.
There is equity in the house (but I dont know if we can re-mortgage due to my credit file?) and I have just got a job too (whilst still running the business) so there is some good news.
One of my problems is not knowing what will happen next and how quickly it will happen - what's the likely scenarios? I am two months behind on credit card payments, the mortgage is up-to-date, I have payment plans with a number of suppliers but two have refused to play ball and are threatening court action, I am in arrears with business rent but they have been understanding whilst I market the business as long as I dont fall further behind (I will do this month until my salary comes in) I am two months in arrears with Business Rates, I month behind on electric (business), Secured loan is half a month in arrears - remainder due end of this month. I have a time to pay agreement with HMRC which is currently up-to-date but next VAT quarter will be due 7th August and I have nothing put away for it. Overdrafts are all at their limit

What a mess eh?

owlet

Do you know how much equity is in the house?
How would you feel if you lost the house?

Samoens12

There is a fair amount of equity - I'd hate it to go but I guess this is all part of the adjustment process. I bought the house on my own after a long and bitter divorce. I need to be less emotional and just deal with these problems don't I!.
I think you people will help me see this. This is probably what I need. I guess in my panic I am just thinking I will end up bankrupt but maybe there are options - as I said earlier I dont know how quickly people take further action. I need to keep reading on this site and gather info. Thank you all so far - please keep the advice coming - it really helps!

egrescrimp

Perhaps it would be best if you create a state of affairs using this this tool http://www.stoozing.com/calculator/soa.php

This will give you an idea of how much you really have left each month after you've paid all your essential bills and bought food etc. I'd then re-approach the business debt helpline and also speak to StepChange for a second opinion based around your personal circumstances.

The main thing todo right now, is stay calm! easier said than done but you don't want to be making any rash decisions that you may regret further down the line.