Help required with plans to default on Barclays CC and Bounce Back Loan.

theville32

Hi there, I have another thread going on Debt-Free Wannabe where members have been helping me greatly with sorting out a lot of credit card debt. 

However, I also have a Business Credit Card and Bounce Back Loan with Barclays that I am quite nervous about - as this appears to be outside the groups normal realm of experience.

Has anyone else had any experience with defaulting on business CC's or the bounce back loans? If so, it would be great to hear from you asap. I have just cancelled my DD for the BBL payment which is coming out in a few days and want to make sure I am doing the right thing. Thanks in advance!

theville32

I just wanted to add that I called Barclays Business card a few days ago and have requested the original T&C's, to see if it is covered by the Consumer Credit Act. 

Also, I have spoken to Business Debt-line and they seemed to think it would be ok to default on these eg I would unlikely be taken to court, assets ceased, have CCJ's etc. However, I am finding how to navigate the business debt a little bit more scary as there is less people to verify their approach to defaulting.

alamest

I’m not an expert, but from what I understand the key difference is whether the credit is consumer or business. If the Barclays card is genuinely a personal credit card, it should be covered by the Consumer Credit Act, even if it was used for business spending.

Business Bounce Back Loans and business credit don’t have the same protections, and defaulting can have different consequences, so it’s sensible to get clarity before doing anything. Speaking to a free debt adviser (StepChange, Business Debtline) before stopping payments sounds like the safest next step rather than guessing.

You’re right to be cautious – defaults should usually be a last resort once you understand the full impact.

Grumpelstiltskin

OP Please stick to one thread.

Brie

I was going to suggest business debt line but you've done that already. 
(for others - Debt advice | Free Debt Advice and Support | Business Debtline)
An accountant might be able to help - obviously that might come with a price tag so you might enquire if your local Citizen's Advice has someone suitable.  One of the debt advisers with a local Community Advice Centre was a retired accountant and I know he was able to talk someone through defaulting on their business's BBL.

born_again

I would think that a lot depends on exactly what type of company this is?
Ltd, sole trader etc.

theville32

Grumpelstiltskin said:

OP Please stick to one thread.

Sorry, I was just hoping that these business questions might be better seperated, as there had not been much advice given on this. 

theville32

born_again said:

I would think that a lot depends on exactly what type of company this is?
Ltd, sole trader etc.

Hi born_again, Thanks for your comment. I am a SoleTrader. Which I think means it is treated the same as personal debt in a liability way. From what I undestand the main difference is that business debt is not necessarily covered under the Consumer Credit Act - so might be enforced/dealt with in a different way. This is what scares me.

theville32

Brie said:

I was going to suggest business debt line but you've done that already. 
(for others - Debt advice | Free Debt Advice and Support | Business Debtline)
An accountant might be able to help - obviously that might come with a price tag so you might enquire if your local Citizen's Advice has someone suitable.  One of the debt advisers with a local Community Advice Centre was a retired accountant and I know he was able to talk someone through defaulting on their business's BBL.

Hi Brie, yes that is who I was advised to contact. I might contact them again tomorrow to get a second opinion. Thanks!

SpireCaptain

born_again said:

I would think that a lot depends on exactly what type of company this is?
Ltd, sole trader etc.

This. I believe as a sole trader, all business credit debts and loans are in your personal names. Ltd company/partnership would be treated differently. 

https://www.money.co.uk/business/guides/can-business-debt-affect-personal-finances

sourcrates

theville32 said:

Grumpelstiltskin said:

OP Please stick to one thread.

Sorry, I was just hoping that these business questions might be better seperated, as there had not been much advice given on this. 

Business debts are not a subject we are equipped to deal with on this forum, due to legalities, and the very complex nature of the subject matter, for those reasons we can advise on personal debt only.

Any business related debt advice should be taken from a reputable source such as the afore mentioned Business Debtline, who specialise in this area.

For those reasons I am going to close this thread now.