Advanced Financial Gymnastics Challenge

dare2dream_2

Firstly, I would like to thank Martin, for setting up this site and for making the video which gave me the courage to confront my situation head on before it makes my health/life (and that of my wife) any worse.

So, to business then. I am a serial entrepreneur and, based upon past performance, am apparently not very good at it. Unfortunately I am an optimist, have a certain amount of intelligence, and am something of a latteral thinker, I have also placed too much trust in others due to naivety. I fully accept that if I succeed, it was inevitable and because I have not (at least to date) then I am an idiot and a dreamer.

My personal finances are inextricably bound up with my working life, which makes my situation vastly more complicated. I am a director of a limited company which was an agent for a German company but which is currently in the process of being voluntarily struck off (there are £23k in bank o/d for this business, which has two directors). I am also a director of my own consultancy company, which has an o/d of £7k. I am a director of a retail business owned by my wife and I which is trading successfully and which I hope, will help sustain us in the dark days to come. Finally, I am a also director of a technology company (which is in the process of trying to raise finance) whose inability to pay me has now preciptated my financial implosion. In all of the above businesses (with the sole exception of the retail business) personal guarantees are involved.

I live in a house which is probably worth about £330k but which has a mortgage of £229k and a secured loan (taken out earlier this year) for £40k.

I have about £35k in other loans and, most damaging of all, a total of £70k in CC debt. Our main joint account also has an o/d of £7k.

Whilst it is possible that I may be able to generate enough money to live on and pay the mortgage, what I cannot sustain any longer are all the financial costs and repayments.

At this moment, I have a Private bank account with a main high street bank, and an unblemished credit rating. I am 41 (my wife is a couple of years older than I am) and we have two teenage sons.

I studied business & finance, so I am fairly technology/finance savvy, but the breakthrough that I had expected to allow me to recoup my losses (I have invested two years of my life in the technology company) has not materialised.

As neither my wife nor I are getting any younger, and now have to contemplate the very real possibility that we may lose our home (we simply don't know) we now have to start planning for 'the worst case scenario.'

I have to decide whether to file for bankrupsy, go with the IVA option (which many people seem to feel is even worse than bankrupsy & has been hijacked by private debt firms seeking to make money) or go for a DMP. I have taken Martin's advice, and am now dealing with the consumer credit counselling service (the appointment with the counsellor is Tues morning).

My motivation in flinging myself upon the mercy of this group, is to absorb as much useful information as possible, so that I can hopefully avoid some of the pitfalls and understand my rights.

I have to find a way to rebuild my financial life from scratch (assuming that nothing positive happens) and work towards a brighter future. I would be hugely grateful for any input you are able to offer, and will answer any questions as directly as I can. Just for the record (and I know that you're at pains not to be judgemental) I take full responsibility for the mess, I am a latteral thinker that tends to think big, and it's now time to think small.

Thank you for your time in reading this, and for any input you may be able to offer. I realise that sorting this out is going to be something of a challenge, and I have to find a way to live and work whilst walking across the hot coals.

D2D

beanielou

Welcome D2D to MSE.
Im sure someone else will be along to give you advice soon.

Jacks_xxx

:wave: Hiya sweetie, and welcome to the board,

My advice, based on my own experience would be to try and keep calm, grab a :coffee: and work through all the potential options as a team. (Don't try and carry it all on your own shoulders.)

The CCCS are fab, but do your own reading up about DMP's, IVA's and bankruptcy so you know a little bit about the advantages and pitfalls before you speak to them in depth. (I also looked over bank statements and worked out a rough budget, and wrote down all my pertinent debt details on one sheet or paper too.)

We looked at consolidation, remortgaging and getting a secured loan as possibilities as well


I'm also going to give you the standard advice, which is standard becaue it's true for everyone.

Make your outgoings shrink

Work out a budget - and post it on here if you want suggestions for where you could make cutbacks or get a better deal on something.

Increase your income.

I'm not really sure what you've got coming in at the moment?

Make sure you're paying as little interest as possible

Renegotiate with your creditors so that your debt costs you less, and balance transfer stuff onto lower interest rate life of balance or 0% cards and Snowball your debts so you're paying them off most efficiently.

http://www.whatsthecost.com/snowball.aspx

Hang out on here and MoneySaving Old Style and soak up help and information like a sponge.

http://forums.moneysavingexpert.com/forumdisplay.html?f=33

Welcome to the gang hon! :dance:

Love Jacks xxx

Kaz2904

For the first step you need to post a SOA. For advice on this you need to look for southern scousers post for first time posters.
Good luck and see you later with an SOA.

Lemon_Tree

it may sound trite but well done for reaching your Light Bulb Moment.Theres some very helpful and clever people on here who will help you out but you need to start off by listing your SOA.

RAS

Hi

Here is the sticky for the SOA. http://forums.moneysavingexpert.com/showthread.html?t=107280 You will need this for CCCS anyway, so it is work worth doing. Include all your debts including the loans that are personally guaranteed.

Given your situation, it would be wise to separate my debts and our joint debts. if you were to go BK, the joint debts would become the responsibility of your wife; they are not written off. You could also be required to release half the equity in your house if you go BK or enter an IVA. Can you afford to pay the larger mortgage if that happens?

Can you service any of the debt with 0% or low interest credit cards, or is that at the end? And could you or would you sell the house and rent for a while to clear the debts.

Finally, would you be better getting a paid job, at a steady salary whilst you get on an even keel?