Advice for first time poster please

System

This discussion was created from comments split from: DMP mutual support thread part 13 !!.

BananaB101

Hi all,

After some advice. First time poster so go easy on me! Have a mix of business and personal debts. Our business unfortunately had to be liquidated earlier this year leaving us with the following debts which were personally guaranteed:

• Capital on tap £4,900
• IWOCA £14,000
• GC finance start up loans (although in our personal names) £40,000

Our personal debts are:

• admiral loans £9,300
• Marks and Spencer CC £2,500
• Virgin CC £1,800
• Tesco loans £4,329

We also owe family and friends a total of £36,000. 

We have so far carried out the following:

• full and final settlement offer to capital on tap (have negotiated interest freeze)
• Reduced payment plan for 1 year with GC finance and interest frozen 
• Interest freeze on iwoca loan - disputing liability currently but not hopeful of outcome
• Continued to pay minimum on admiral, m&s and virgin CC

I have the following queries:

1. Is it just business debtline that will deal with business personal guarantees? I have tried to contact them numerous times but can’t get through and the chat function just says call the helpline. Wondering if step change may be able to?
2. We ideally want to remortgage in the next few years to extend. We do have a small pot of savings (10k) and also have a fair surplus each month now my husband has a full time job (1.5k). Would we be better waiting for the business debts to default (although this will impact credit score) and trying to negotiate full and final settlements if even an option? 
3. Can we just deal with each debt as it becomes more pressing I.e Tesco loans which my husband has fallen behind with try and settle first? Or is there a better strategy. I don’t want to be stuck in a long DMP if we can avoid it.

Any advice would be greatly appreciated. 

sourcrates

Moved from DMP support thread to main forum.

fatbelly

Hi. Yes it's Business Debtline for the business debts. It sounds like some of these debts may have joint liability or be in your partner's name. Can you let us know or we'll assume everything is in your name alone.

What is the attitude of family and friends? Do we treat them as priority?

Statement of affairs would be useful

https://lemonfool.co.uk/financecalculators/soa.php

BananaB101

Hi,

Thanks for your response. Yes there is a mix of liability here. I am personally liable for capital on tap, half of the GC finance loan, admiral loan and both the Virgin and M and S credit cards.

Family and friends are actually all stating they can wait so not priority but obviously do need to have some sort of plan to pay them back.

I will have a go at the statement of affairs, feel like I’ve been filling out endless forms! Think the amount of admin is one of the hardest parts at dealing with it all 🥴

RAS

HI, how do you mean, you are responsible for half the GC finance loan? Do you mean that it is a joint loan?

If so, you are both wholly responsible for the whole debt, as if one you fails to pay the creditor can go for the other for the whole sum. That's what a joint loan id.