Blunt debt advice wanted

JohnDoe42

£15k loan defaulted 24 months ago
£15k credit card defaulted 18 months ago
£30k business personal guarantee that isn't on my credit file but bank are asking for.

£15k Credit card have agreed settlement for £2500 but will be satisfied, not settled, on the credit file and will likely show the defaulted balance. They've told me that they cannot mark the file as settled unless I pay the full amount, which conflicts what I've read on here.

I have a property but with negligible equity.

1. Should I go bankrupt?
2. If I don't go bankrupt, should I take this settlement and pay it? Is it worth it based on the settled marker? To answer preempted questions, after this I will also seek to settle the loan for a similar amount. This will be a struggle but I will likely be able to do it. The business guarantee I'm not so sure.
3. If I go bankrupt will this remove me from the personal guarantee for my previous business.

Thanks in advance to anyone taking the time to help me with their knowledge.

JohnDoe42

Edit
2. If I don't go bankrupt, should I take this settlement and pay it? Is it worth it based on the satisfied marker?

sourcrates

Hi,


Without knowing more on your finances, its difficult to advise.

However, if you went Bankrupt, all your debts could be included, but you may be putting your house at risk by doing so.

Again, I don't know your income, or expenditure, so its hard to say what your best option would be, one things for certain, I would not bother about your credit file, that's the least of your worries.


If you can settle these accounts for the amounts you say you can, I would do so, but get everything in writing, so that you wont be chased for the remainder of the debt, as that would be preferable to going Bankrupt.

andyfromotley

Whats your income? How much is available for debt payment? You could fill in an SOA and you could get better advice.

Bankruptcy seems attractive on face value, nut obviously has long term implications.

Try seeking advice fron Stepchange or Business Debtline see what they say.

fatbelly

Bankruptcy would include your liabilities at the time you go bankrupt. The problem with bankruptcy in your situation is that your house would be valued at the 27 month point. Although you say you have negligible equity now, you may have a problem then.

If you can make the settlements without further borrowing, I think I would do that. The correct marker is partially satisfied.

The business debt could still be a problem. If the bank goes for a statutory demand it could be difficult to avoid bankruptcy