Personal Dmp effects on business account

Aks1979

Hello

Could anyone please offer any insight into my current situation.

I am struggling to pay my debts which have grown while my income has reduced. I have been advised a Debt management plan would be best. 18k of unsecured debt most on 30% Apr and my income is 15k per year.

I run a small business of which I am a partner, the partnership bank account has a overdraft facility of which is 7k in the red.

If I look to freeze interest with my personal debt and set up a dmp to repay what I can / when I can. Will the buisness partnership account credit be effected?

I am not looking to include any buisness debt in my personal Dmp. My personal debt is not with the buisness bank (barclays) other than a personal barclaycard. I guess because of this link I should continue to service the barclaycard as per agreement.

What I worry about is if I set up a dmp to sort personal debt, the buisness bank will suddenly withdraw the buisness partnership credit facility and demand the overdraft is repayed instantly. I am not interested in having long-term buisness credit but it will take time to clear the overdraft.

Thanks

sourcrates

No won’t affect it, the two are entirely separate.

Aks1979

Thank you for the reply. Is it worth speaking to the business bank regarding my personal situation or are you very confident it will not affect it?

sourcrates

If you have personal arrangements in place for personal debt, it should not have any effect on your business debts unless you can’t pay those either.

Not knowing your full situation I can only give so much advice.

StopIt

If you have personally guaranteed any of your business debts, that is the only time your personal credit can affect your business. Otherwise, personal debts and business debts are not linked.


If you're in any doubt, either speak to the National Debtline, or whoever does your accounts, who can advise on your exact circumstances.

National_Debtline

Hi Aks1979


If you have a partnership you have personal liability for both your personal and business debts. The exception to this is if you have a limited liability partnership.


In a DMP you are expected to include all of your debts, although a business overdraft may be excluded. The situation is slightly more complicated by the fact your personal credit card is with the same bank as your business overdraft. I would recommend you speak to Business Debtline for advice on your best way to handle that. You can find their contact details here www.businessdebtline.org.


Susie
@natdebtline

Aks1979

Thanks for your advice