Some Advice Please

TDQO

Evening all,

I haven't logged in here for nearly four years, unfortunately I am back because my company went into administration and now I am unemployed with people chasing me for money.

I ran my own company for 6yrs and although the reasons are complex we essentially grew too fast too quickly and with the market becoming massively competitive we couldn't cover the bills and it was all wrapped up in December. The business has now been sold to someone else for a pittance which means that my secured creditors won't be paid in full and will be after me.

I currently have First Credit chasing me for £19,500 (bank sold on a loan debt) but they are still at the "softly softly" stage.
I am expecting a fund management company to chase me for up to £65,000, once the administrator pays them a few pennies it might be as low as £50,000.
There is also a question mark over the bank overdraft as I signed for it but it may not have been a legally enforecable PG. If it is enforceable that will be another £25,000.
So total actual is £19,500 but with others it might rise as high as £95-110,000.

I am currently unemployed but have several job offers on the table, luckily my company had an outstanding reputation for the quality of product and had won many awards so I have plenty of people willing to give me a job of some sort. Worst case scenario is that a job would pay £2k per month which after tax will just cover my outgoings as they are.
My current monthly costs are £1,400 as my other half is signed off sick so I am covering all the rent and bills etc.

I really do not want to go bankrupt or use an IVA because I believe in paying my debts and I want to start another business ASAP albeit in a vastly more profitable manner .

How many of you on here have managed to come to good agreements with creditors? I would like to be able to negotiate a reduced lump sum and then arrange to pay each one monthly for 5-10yrs until it is all paid. How likely is this?
I have high earning potential and am planning to work 80+hrs a week (as I have been for 6yrs) to secure multiple income streams but I need to have enough cashflow and be able to reinvest extra profits into the businesses in order to do so. Hence my question about the likelihood of arraning fixed monthly payments etc.

National_Debtline

Hi

Negotiating affordable monthly payments with your creditors is certainly possible. We have sample letters you can use here and there’s also a budget template you can use to show your financial position.

www.nationaldebtline.org/EW/sampleletters/Pages/default.aspx

In terms of negotiating a reduced settlement it’s most often done as a lump sum payment rather than instalments, but ultimately it’s at the discretion of your creditors. There is a factsheet on full and final settlements here which might be useful.

www.nationaldebtline.org/EW/factsheets/Pages/fullandfinalsettlementoffers/lumpsumoffers.aspx

If you need any advice of a business nature, or regarding business creditors, you might find Business Debtline useful.

www.businessdebtline.org

James
@natdebtline

TDQO

Thanks very much I'm trying to be proactive and arrange payments however small to stop any defualts or court action as I have some hefty business ambitions and will need a good credit rating.

MrsTinks

Unfortunately if there is a credit agreement in any of those debts that are relating to your personal credit and you pay anything less than agreed then you will end up with defaults. I would seriously suggest contacting the business debtline as above as this is a little outside the areas we normally specialize in on here...

Wrapping up this company and what debts you or a new owner is liable for really needs some serious legal and financial advice - failure to handle this correctly might make it all go wrong and you could end up barred from holding a director position again... obviously that isn't going to fit into your long term plans by the sounds of it... get some professional help on this one

Anthorn

Re. the Opening Post: Let's face it,you have defaults staring at you fairly and squarely in your face. You can probably negotiate yourself or you can hand the whole thing over to a Debt Management Plan with Stepchange which provides a free service. They will negotiate on your behalf and might actually negotiate freezing of interest and avoidance of defaulting. However lenders are not obligated to accept anything but are likely to accept a DMP. Beware though that some lenders might default as a matter of policy when presented with a proposal through a DMP

https://www.stepchange.org/