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DRO & Ltd Company
Hi All,
Currently looking at entering a DRO. (Have CC debts of around £17k). However I've received some confusing information from StepChange.
In short, I'm the Director of my own LTD company. Business is in the arts so suffered horrifically because of Corona, and income has dropped to nothing. I have hopes in the coming years we can become viable again, but for the foreseeable it will be a real struggle, and I can't pay my CC debts without an income.
Now, the business has an outstanding loan worth £7k for which I am a guarantor. I've spoken to StepChange and they've said that as I am a guarantor for this loan, this would take me over the £20k personal limit for a DRO.
I have however taken out a Bounce Back Loan for the Company. And my intention was to use this to pay off the existing company loan. However Stepchange have said that this wouldn't be permitted as it would be seen as paying off personal debt (I don't see how this could be true as the loan is for the LTD company, I'm just the guarantor).
So now I'm completely confused.
My plan had been to do the following.
1. Repay Business loan with BBL
2. Appoint new company director. (My Partner)
3. Resign as company director
4. Declare DRO.
5. After DRO is over, be reappointed as company director.
Just wanted to see if anyone else has been in a similar situation, and to see if my plan is viable.
Thanks in advance.
Currently looking at entering a DRO. (Have CC debts of around £17k). However I've received some confusing information from StepChange.
In short, I'm the Director of my own LTD company. Business is in the arts so suffered horrifically because of Corona, and income has dropped to nothing. I have hopes in the coming years we can become viable again, but for the foreseeable it will be a real struggle, and I can't pay my CC debts without an income.
Now, the business has an outstanding loan worth £7k for which I am a guarantor. I've spoken to StepChange and they've said that as I am a guarantor for this loan, this would take me over the £20k personal limit for a DRO.
I have however taken out a Bounce Back Loan for the Company. And my intention was to use this to pay off the existing company loan. However Stepchange have said that this wouldn't be permitted as it would be seen as paying off personal debt (I don't see how this could be true as the loan is for the LTD company, I'm just the guarantor).
So now I'm completely confused.
My plan had been to do the following.1. Repay Business loan with BBL
2. Appoint new company director. (My Partner)
3. Resign as company director
4. Declare DRO.
5. After DRO is over, be reappointed as company director.
Just wanted to see if anyone else has been in a similar situation, and to see if my plan is viable.
Thanks in advance.
0
Comments
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I could be wrong but I though if directer you couldn't have a dro sour crates amd fat belly are good people im sure they will come along at some point id speak to national debt line and speak to the consumer part and ask for the business debt line aswel sorry not much help0
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