Hi,

I have debt with a few different companies amounting to around £19k as a result of my company becoming unable to manage our cash flow.

(We were bought down by several of our clients not able to pay us now the inland revenue are winding the company up.)

The above aside I would like some advice on what I can do to manage the debt that I have built up trying to support the company which is as follows:

Current account: - £2,600 over-dawn - overdraft limit is £3k

Credit card 1 - £2,540 - limit is £3k

Credit card 2 - £3,145 - 0% interest card for 18 months

Credit card 3 - £3,320 - limit is £6,500

Also;

A personal account with a joinery supplier to which I owe £7,800.

So all in all about £19,405 and increasing daily due to living costs etc.

All the debt I have above is from buying materials for the company, going without being paid for several months and not being able to pay my expenses for several months in order to support the company. (I also had £10k invested in the company that I have lost)

and;

The company's overdraft facility which is £25k shared equally between myself and my business partner.

In order to get this we had to sign a debenture in order to personally guarantee it.

I didn't include the above because I'm not sure if this needs to be considered for the time being,

I guess that's question 1 because the revenue haven't completed winding us up so the account is still live and hasn't been frozen.

My current personal circumstances as a result of this are as follows:

I am separated from my fiancé and have a child with her that I obviously need to support and at the very least pay maintenance for.

moved out and have been living with my mother for just under a year.

no assets and no savings. (No car and certainly no house)

no job and have not being paid for the last couple of months.

The pressing issue I have is the account with the joinery company, which is question 2

My company had an account with them with a small credit limit so both myself and my business partner set up our own individual accounts as a way of extending our purchasing ability.

My company's account is settled as is my business partners however mine isn't.

As a result they issued a CCJ against me about 6 months ago because we were not able to pay it off.

An agreement was reached through the courts and a figure had to be paid every month.

As the company failed we couldn't pay this even.

The court has sent me an interim third party debt order,

the joinery company is seeking to get a court order to demand from my bank the contents of my account.

Question 3

I guess is where I go with all of this next,

I haven't got any way forward with any way to pay this off,

and after years of sacrifice and going without I have come out the other side with less than nothing.

I have done a little research into what my options are but I guess taking all of the above into consideration, what is the best approach:

Debt relief order - for debts of less than £20k - although i'm now very close to the limit not taking the business's over draft facility so i'm not sure if eligible

Individual voluntary agreement - If the above isn't possible perhaps this would work but would everything be covered in this?

Bankruptcy - not ideal for obvious reasons.

Is there a realistic alternative to bankruptcy in this situation ?

The debts are increasing and I am not sure you can delay matters.

If you have no earnings and limited savings left, suggest you open up a separate basic Bank account now and claim any benefits such as JSA or Universal Credit as a temporary measure.

You should seek qualified debt/legal advice and you may be able to get some limited free help locally from a Solicitor and/or insolvency practioner.

Yes, what are the obvious reasons which prevent you from considering bankruptcy?

Thanks for your response,

I do have a little light at the far end of the tunnel in that i have been offered a job (part time) for another company, this would be regular work and income that could be used to make payments under an IVA. I have also set up a separate basic bank account as you suggest, I forgot to mention that.

I guess I always considered it the very last resort, and it's an expensive process isn't it? i'm also concerned that some of the creditors owed by my company would come after me and my family personally and could become violent or aggressive, so if i could avoid it that would be preferable.

I though it was about £800 to apply for your own bankruptcy ?

Whatever is best for you, IVA or bankruptcy. Needs to be something officially registered, which will keep creditors at arms length.

There should be no violence or agressive tactics, but if you delay matters, then you risk a visit by high court enforcement, who can seize vehicles you own. They have no rights to force entry, but would try to see if a door is unlocked or someone is silly enough to let them into their house. Once in a house, they have right to come back and force entry if necessary, if a payment arrangement is not necessary.

Advice is to act without delay. Speak to someone who deals with insolvency and make the relevany application.

I though it was about £800 to apply for your own bankruptcy ?

 

Whatever is best for you, IVA or bankruptcy. Needs to be something officially registered, which will keep creditors at arms length.

 

There should be no violence or agressive tactics, but if you delay matters, then you risk a visit by high court enforcement, who can seize vehicles you own. They have no rights to force entry, but would try to see if a door is unlocked or someone is silly enough to let them into their house. Once in a house, they have right to come back and force entry if necessary, if a payment arrangement is not necessary.

 

Advice is to act without delay. Speak to someone who deals with insolvency and make the relevany application.

That should have read, payment arrangement not kept to.