Business loan PG being enforced - Solaris debt collectors demanding payment or court - help!

pocketwaffle1

My business used Capital on Tap for a loan. Unfortunately, the business went downhill as a result of the COVID Lockdowns, and I’ve received a letter from Solaris Law, representing Capital on Tap, informing me that they intend to pursue me personally due to a personal guarantee I signed. (I don’t recall any mention of a personal guarantee, just a tick box to accept terms, but after researching online, I’ve discovered plenty of people have had similar experiences).

Anyway, the business was a music festival and relied heavily on investment from me and the other partners. Two years ago, we cancelled what would have been our most recent instalment. We had hoped to turn things around, but due to the money required to sustain it, it’s been practically impossible, so I’ve been in conversation with Business Debtline about the next steps to take. 

Business Debtline has been helpful, but I’m a bit confused about how I should respond to Solaris. I had a Google and saw there are some knowledgeable people on here, so I’m hoping some of you can help me understand what to do next.

The letter they sent me wasn’t a letter before action. It was a letter saying you owe £X and we are going to pursue you for it because you signed a PG. After speaking to Business Debtline, I wrote to them telling them I’m seeking debt advice and asking for breathing space. They replied to me this week, saying they’ll give me an extra two weeks to come up with an offer of payment, but if I don’t, they may pursue me through the courts.

I also got into some personal credit card debt during this time and had advice to stop paying the credit card bills I couldn't afford, to let the accounts default and request CCA documentation before making offers to the creditors.

I’m still self-employed, albeit in a different industry, and I’m earning a touch over minimum wage. The credit card repayments I was making were crippling and left me with practically nothing. My relationship broke down. My landlord decided he wanted to sell the flat I lived in, and because I had no income for the three months leading up to that, I was unable to secure a rental of my own and have been lodging with an elder family member.

I wanted to try and keep up-to-date with my credit card payments and got into a pattern of missing one or two payments and then making a payment, and so on, because I was terrified of defaulting. A friend told me that I should get some advice, and that's when I was told to stop making the payments, etc. 

This was all recent (I’ve missed one payment on the personal credit card and will continue until the account defaults), I was hopeful I might be on the way to sorting out my personal finances, and then I had this letter from Solaris through the door, and I’m at a loss as to how to handle it.

Is there an equivalent process I need to go through when dealing with Solaris regarding this debt?  I believe it’s an unsecured business loan and, as I understand it, those are not covered by the CCA? I’m really worried that they want me to come up with an offer of payment to them in two weeks, or they’ll take me to court. It goes without saying, I don’t have the money to pay what they’re demanding. It could be 16k, could be 20k, not sure because Solaris quoted two different amounts on the letter. To be honest, I just don’t know what I’m going to do about this, and it’s worrying the life out of me. Are they just going to take me to court and force me to give them all my wages, or force me into bankruptcy? 

I’m really hoping somebody can give me some direction on how to handle this. 

Thanks if you read this far.

MattMattMattUK

pocketwaffle1 said:

My business used Capital on Tap for a loan. Unfortunately, the business went downhill as a result of the COVID Lockdowns, and I’ve received a letter from Solaris Law, representing Capital on Tap, informing me that they intend to pursue me personally due to a personal guarantee I signed. (I don’t recall any mention of a personal guarantee, just a tick box to accept terms, but after researching online, I’ve discovered plenty of people have had similar experiences).

Anyway, the business was a music festival and relied heavily on investment from me and the other partners. Two years ago, we cancelled what would have been our most recent instalment. We had hoped to turn things around, but due to the money required to sustain it, it’s been practically impossible, so I’ve been in conversation with Business Debtline about the next steps to take. 

Business Debtline has been helpful, but I’m a bit confused about how I should respond to Solaris. I had a Google and saw there are some knowledgeable people on here, so I’m hoping some of you can help me understand what to do next.

The letter they sent me wasn’t a letter before action. It was a letter saying you owe £X and we are going to pursue you for it because you signed a PG. After speaking to Business Debtline, I wrote to them telling them I’m seeking debt advice and asking for breathing space. They replied to me this week, saying they’ll give me an extra two weeks to come up with an offer of payment, but if I don’t, they may pursue me through the courts.

I also got into some personal credit card debt during this time and had advice to stop paying the credit card bills I couldn't afford, to let the accounts default and request CCA documentation before making offers to the creditors.

I’m still self-employed, albeit in a different industry, and I’m earning a touch over minimum wage. The credit card repayments I was making were crippling and left me with practically nothing. My relationship broke down. My landlord decided he wanted to sell the flat I lived in, and because I had no income for the three months leading up to that, I was unable to secure a rental of my own and have been lodging with an elder family member.

I wanted to try and keep up-to-date with my credit card payments and got into a pattern of missing one or two payments and then making a payment, and so on, because I was terrified of defaulting. A friend told me that I should get some advice, and that's when I was told to stop making the payments, etc. 

This was all recent (I’ve missed one payment on the personal credit card and will continue until the account defaults), I was hopeful I might be on the way to sorting out my personal finances, and then I had this letter from Solaris through the door, and I’m at a loss as to how to handle it.

Is there an equivalent process I need to go through when dealing with Solaris regarding this debt?  I believe it’s an unsecured business loan and, as I understand it, those are not covered by the CCA? I’m really worried that they want me to come up with an offer of payment to them in two weeks, or they’ll take me to court. It goes without saying, I don’t have the money to pay what they’re demanding. It could be 16k, could be 20k, not sure because Solaris quoted two different amounts on the letter. To be honest, I just don’t know what I’m going to do about this, and it’s worrying the life out of me. Are they just going to take me to court and force me to give them all my wages, or force me into bankruptcy? 

I’m really hoping somebody can give me some direction on how to handle this. 

Thanks if you read this far.

Do you actually have any assets for them to come after as from the sound of it you do not own your own home etc.?

It may be worth considering bankruptcy, wipe the slate clean. How much do your personal debts total?

RAS

Or a DRO if your total debt is below £50k and you meet the excess income and asset requirements.

Depends how much you are paying the relative for lodging?

ManyWays

What did Business Debtline suggest?