LOSING IT ALL.... a failures story

ENDOFTHEROAD_2

Hi everyone, I don't really think that anything can be done to help or even if I'm in the correct forum, but I'm at the end of my strength now and just need to put into words (sorry its gonna be a long one) what has/is happening to me, I feel such a failure and I am so ashamed of the position I'm in.
12yrs ago my mechanic husband & a partner started a business that expanded and grew from an (auto related) hobby into a good retail business with a turnover of about £350k
4yrs ago we bought out the partner as he had lost interest and was becoming a liability .The purchase price was £110k and we needed to borrow £70k from Barclays. They agreed to the loan provided we fulfilled a few conditions... I HAD to take out a key person insurance policy (all arranged for us by bank) and also let them put a charge over our house for 5yrs. We weren't happy and expressed this, but as we had very little time to play with, we did it and the business was ours, my husband worked the garage and his employees did the shop while I did the books/internet.
During early 2006 my husband (now 38) was diagnosed with a serious spinal condition that was "unstable" he was told to stop working immediately, and given a bad prognosis and told he was not suitable for surgery, our life stopped dead.
My life was immediately chaos, as trading was difficult when you have no mechanic, he was also the main person to deal with the public, as over time many customers were regular and always wanted "the boss" something the O/H was v proud of. Long story short... business been V dificult over 18mths have lost most staff, just me and 2 p/timers now, cut hours in half and have no money....at all.
OK so all the above is unfortunate, but thats life and things happen that are out of our control, we have to just do our best and I still am (desperately)
But since the diagnosis EVERYTHING that could go wrong HAS in one long chain of disaster
The KEY PERSON insurance policy did not pay up the 70k:eek: (with ombudsman) due to 3 minor discrepancies on app form, I appeal, they pass complaint to Barclays Life, who say not their fault, I go to ombudsman.
Couldn't keep up loan re-payments as business (and hubby) getting worse weekly, overheads to high and massive stock levels.
Had to sell the house as knew the charge was still in effect, and wanted to save business until ombudsman desicion, as we know the business potential if we could save it.
Hubby starts 2nd (internet) business from bed! opens ac at Barclays and has been slowly but surely building a 2nd business (since diagnosis there had been several suicide attempts and councelling sessions to help with anxiety and depression) but this new chance to be boss again helped and had even started to show a profit:T
Barclays call in all business and personal debt (80k) after I threaten them with court action to get personal charges back from them!:mad: and I had needed it to pay bailifs things were that bad
Auto and personal accounts frozen, DD & SO bouncing and hundreds in charges daily now
They will be closing these accounts 17/09/07
However ...my silver lining....Internet business making nice profit
UNTIL TODAY Barclays withdrew the full balance from internet business ac and used it for the struggling auto business loan. We had no idea until a supplier anounced that the card had declined, how embarrasing and damaging as we are a new business) Our 2nd business is now unable to trade either and we cannot open other bank a/c's. I feel enough is enough I don't want to go on trying to make it work anymore. I want to be with my husband who is now bed ridden and in agony most days, I'm sick of the way theban have acted they've slammed every door closed and this is the final straw, my everything is in the hands of the ombudsman and I'm scared. The thought of going to work tomorrow is making me physically sick. I have 4 weeks left until the house sale is complete and I have no where to go with a disabled husband.
thanx for listening

HairyHandofDartmoor

Sorry to hear about all your problems. I'm afraid I don't have the knowledge to help you but I'm sure someone will be along soon to advice you.

Have you tried talking to the Citizens Advice Bureau by the way?

lynnejr200

I am really sorry to read how bad your situation is. Unfortunately, there is nothing I can say to help or any advice I can give you.

However, please be aware that support will be plentiful from people on this forum. If ever you feel the need to talk or rant this is a good place to do it.

What is the current situation with the Ombudsman?

My thoughts are with you and I truly hope something happens to improve the situation.

xxx

TheAble

Hello there

I'm sorry to hear of your situation, but bear in mind there's always a solution. Could you simplify things a little by listing:

a) Total liabilities
b) Total assets
c) Total income

Looking at the figures in black and white helps to find a pragmatic solution.

Chin up!

TheAble

redfaced

I'm really sorry to hear of your problems, I can't be of much help but i'm sure someone here will be along soon with advice. Just wanted to say good luck and to send you a hug.

red
x

maz123_2

Big, big big hugs!!!
Sorry no words of wisdom, i'll keep my fingers crossed for the ombudsman for you

ENDOFTHEROAD_2

Thanx all, it helps to know your there, have had good personal advice from CAB. Currently waiting O/M descision. Assets 200k, Debt 100k, living on hubby DLA + IB benefit and WTC = £155 pw no income from either business

tomstickland

Hey, I have no knowledge to help you with, but your hubby obviously has something, being able to start a 2nd profit making business. I've heard of a few businesses that have gone under, and then the owner has started again, so it might be worth trying to find out how people do that.

TheAble

Ok, in which case I would suggest you liquidate the business and your house and use it to pay off your debts. This will leave you with £100K with which you can locate to a cheap area and buy a cheap property with no mortgage (aim for around £70K). You can then live frugally on what's left over and the £155 p/w while you get back on your feet and hopefully your income will improve. Best of all, you'll be free of all your debts and won't have the hassle of all these bouncing payments and creditors hassling you.

May I wish you all the best, take care.

madmoney_2

thats really good advice theable, that is definately what i would do, good luck with whatever u decide to do hun, and know that we are here for you xxx

Snaggles

Hiya, again I have no knowlege of business banking etc, but just wanted to let you know we are here to listen if you need someone to talk to or rant at. I wish you all the best, it sounds as though you have a lot on your plate at the moment. Take care xx