Its all gone wrong

Whysohard

Hello!

Im new here and sadly have to start off in this section, but hey ho

A background on myself.
I currently run a struggling online retail business, which started in 2010.
Since Sept/Oct everything that could go wrong seems to have, from a huge robbery in Oct to major system issues in Nov and poor Christmas sales due to the robbery and the amount of stock taken and damage done.

This has now meant that the business is verging on insolvency. Im still waiting on insurance payouts which amount to 100k+
All has been accepted by the insurer however due to the size of the claim there is a lot of back and forth.

The company has some long term loans within it, (this is where sadly i become personally reasonable)
I have taken the decision mainly due to the fact that things seem to be getting worse day on day and i cant continue to operate when i Believe the company is running insolvently.

After i decided to speak to a IP i have found out that i have a PG against the largest outstanding loan in the Business for 175k, I was un aware that this was the case and do have some emails from the lender being slightly coy about the whole thing.

Non the less i have found a document that is a PG and im liable

Now the business in my eyes is un recoverable, its running low on Funds and Stock and due to the time the insurance claim is taking i dont hold much hope that this will come through and save my a**

So looking forward, the Company will no longer pay this loan this month along with other debts such as creditors.

Does anyone know what is likely to happen when they call in on the PG and start chasing me for the debt.

I do consult for 2 other very large online retailers so do earn, however my personal costs monthly are just sub 4k.
This includes Mortgage and personal loan repayments for home improvements.
I do have a house with some equity but not a lot as i only bought 2 years ago (house has gone up in value due to location)

I would say i could offer to pay around 1k Monthly for this PG however as it would take so long to pay off would i be better to declare myself bankrupt?
I understand i could still loose the house, but i hope not to.

Ideally i would love to sort the issue out, however unfortunately the situation dosn't really allow for it currently.

Hopefully someone can advise.

Thanks in advance!

RattyIrk

If you believe the business can be saved you urgently need some professional IP advice. It will cost and is not a nice process but if they concur it is savable they can either advise you and/or deal directly with creditors.

I was in a similar position (but without house) but with no hope for the business. The holders of any PGs will go after you. Unless they are on some vendetta if you can offer them something, even if over time, and the alternative is they would get much less or nothing at all you may be able to strike a deal with them.

The key for you, from what you say about your circumstances, is to try and avoid personal bankruptcy in addition to company possibly going under. The business may or may not survive.

I won't comment further as you need proper professional advice but I was in your shoes this time last year. Try and take things in your stride as best you can. It will be a rocky ride but whatever happens you will come out the other side.

TheGardener

Business Debline is free and professional- i f you havent talked to them yet - they should be your next call.

Brock_and_Roll

Surely the insurance payout, when it comes through will be an asset of the administrator? - so £175k - £100k = £75k before any other business assets are taken into consideration.

mcmorj

I am no expert but reading through your unfortunate circumstances, the first thing that occurs to me is to establish exactly what happens if the company with the Insurance expected payout attached goes into insolvency? Because my experience with Insurance companies is they will use any possible lever or loophole to avoid a payout.