Feeling Terrified

AndyBSG

As Egrescrimp says, try to be calm and logical about it until all the options are clear and posting an SOA will help us to give more specific advice.

If business debt line aren't much use it may be worth contacting Stepchange.

Although they won't be able to advise on the business front they will be able to advise on IVA or BR options based on your SOA

Samoens12

Thank you for your advice. Ive tried to complete one of these before but because the business income is so variable it is difficult - I dont get a specific wage. does anyone have any advice on how to best tackle that?

In addition currently my husband pays all of our household bills etc so should I just leave this all out of the equation and deal with my debts or do i lump it all together (although I dont know all of his outgoings as we dont have a joint account)

Thank you for your help:)

egrescrimp

The best thing todo is work out how much you've made per month on average and then fill it out based on those figures.

Samoens12

I have had a go - Ive added in things like staff wages etc and I think this is fairly close

Statement of Affairs and Personal Balance Sheet

Household Information
Number of adults in household........... 2
Number of children in household.........
Number of cars owned....................

Monthly Income Details
Monthly income after tax................ 1900
Partners monthly income after tax....... 0
Benefits................................ 0
Other income............................ 8500
Total monthly income.................... 10400

Monthly Expense Details
Mortgage................................ 0
Secured/HP loan repayments.............. 726
Rent.................................... 1500
Management charge (leasehold property).. 0
Council tax............................. 710
Electricity............................. 397
Gas..................................... 50
Oil..................................... 0
Water rates............................. 30
Telephone (land line)................... 110
Mobile phone............................ 43
TV Licence.............................. 0
Satellite/Cable TV...................... 0
Internet Services....................... 0
Groceries etc. ......................... 950
Clothing................................ 0
Petrol/diesel........................... 0
Road tax................................ 0
Car Insurance........................... 45
Car maintenance (including MOT)......... 0
Car parking............................. 0
Other travel............................ 0
Childcare/nursery....................... 0
Other child related expenses............ 0
Medical (prescriptions, dentist etc).... 0
Pet insurance/vet bills................. 0
Buildings insurance..................... 0
Contents insurance...................... 53
Life assurance ......................... 0
Other insurance......................... 0
Presents (birthday, christmas etc)...... 0
Haircuts................................ 0
Entertainment........................... 0
Holiday................................. 0
Emergency fund.......................... 0
Sage.................................... 65
Accountant.............................. 150
Staff wages............................. 3400
Total monthly expenses.................. 8229


Assets
Cash.................................... 0
House value (Gross)..................... 325000
Shares and bonds........................ 0
Car(s).................................. 0
Other assets............................ 400
Total Assets............................ 325400


Secured & HP Debts
Description....................Debt......Monthly...APR
Mortgage...................... 110000(0)........0
Secured Debt.................. 93000....(726)......7
Total secured & HP debts...... 93000.....-.........-

Unsecured Debts
Description....................Debt......Monthly...APR
MBNA...........................12000.....368.......23.9
Barclaycard....................3500......75........16.9
business O/D..............15000.....0.........0
Business Rent........................23000.....500.......0
Suppliers......................8500......450.......0
VAT...........................3000......1000......0
Business C/C...................3940......121.......16.9
Nat West O/D...................5000......0.........0
Total unsecured debts..........73940.....2514......-


Monthly Budget Summary
Total monthly income.................... 10,400
Expenses (including HP & secured debts). 8,229
Available for debt repayments........... 2,171
Monthly UNsecured debt repayments....... 2,514
Amount short for making debt repayments. -343

Personal Balance Sheet Summary
Total assets (things you own)........... 325,400
Total HP & Secured debt................. -203 000
Total Unsecured debt.................... -73,940
Net Assets.............................. 48460


Reproduced on Moneysavingexpert with permission, using other browser.[/i]

debt_doctor

Hi,


The first thing you need to do is to separate your business income and costs form your household income and costs.
There are several reasons for this but the first one is; Is you business viable? If it is not making money and you see no way to alter this scenario then the business probably needs to end.
To discover you answer you need to look at all the business income (perhaps per month or what ever works for your business) and then subtracting every single business cost such as wages, utilities, business rent, rates, stationary - absolutely everything.
Once you have done this you will be left with a monthly (or appropriate term) taxable income.
Subtract an appropriate amount of tax and you will be left with the correct amount to put in as income in the SOA you have posted above.
Then once you have put your net income in to the SOA, you need to take out all of those business costs from it and just include your personal household costs.


It is likely that as you do not seem to know how much your business makes / loses each month / year that this is where the problems lie.
DD

debt_doctor

...... did I also read correctly that you have more than £120 000 equity in your house?
DD

Samoens12

I had to correct that as I had missed off the mortgage! The business is on the market to try and alleviate some of the debts which is just adding another level of complication. Due to credit charges etc my business is becoming unviable for me

debt_doctor

You still need to do your business calculations asap - I see you pay an accountant - ask him / her for help in knowing your position.
My fear for you is that you just let this run until your debt is so large that the unsecured debt is as large as the equity.
Currently it seems that even with the unsecured debt getting paid in full you could walk away (from property sale) with £50k.
Bankruptcy is clearly not an option right now as there is something to salvage.
An IVA may be possible and set it up to keep you in your house, but again you will never know unless you establish the position of your business.
DD

Samoens12

I do have all of my business costs available. I know we had a Gp of 55% last year and net profit of £2k. As it's a retail business I can only forecast what my sales maybe and that's what I'm finding difficult when it comes to calculating income and the SOA some months we pay the bills OK other months we struggle but there is rarely much surplus to tide us over tough times.

slowpoke_rodriguez

So you have no car as an asset, spend nothing on petrol, yet pay out £45 a month on car insurance?

Are the investments in France not worth anything? How much do you have tied up in them?

Your figures only tell part of the story, and even that is confused.
How much does your husband know? Does he care? Is he part of the problem? Does he not contribute towards the costs? Nearly £1000 a month is very high for one person to spend on groceries.
What does the accountant do for their money? If the business is a going concern and you have over £100k equity in the house then why not sell the house?
Can you not sell the French investments?
From the information you give it doesn't seem as bad as you think!