Feel stuck with no way out.

[1stlifeline]

Im sorry if this is a long thread, will keep it as short and to the point as possible.

 

At the end of last year we admitted defeat and sold our house to avoid repossession. We are fighting several creditors and juggling others. We have moved into rented property and are still finding it a great struggle to get from week to week.

 

OH works all the hours he can to keep us afloat.

 

My son lives with us and has been working but erratic hours and for the last 5 months has only earned roughly 80 pounds a week. Now his employer has closed his business and so he is having to sign on till he can find other work.

 

I took a gamble 2 years ago and went into business with a friend. We did research and I thought we were onto something as we had a unique position in the town, however since then 3 competitors have opened and trade has plummeted. To start the business we had to take out a loan which was taken out in his name (because of my credit history) but for which I am 50% responsible on the monthly payments.

We have now changed tack in the business and are selling items for other people on comission therefore cutting out the cost of restocking ourself.

 

Problem is, the business is ticking over but not always enough to pay the rent and bills, certainly nothing for me to take a wage from. But, its catch 22. If we close then we are still going to have to pay the rent for the rest of the term- we also owe backrent. We also still have to cover the loan repayments which at the moment come out of the business. So basically, if we close and I go for a full time job somewhere I will still have to pay £150 a week out of my wage back to the business. At the moment Im also working 2 nights a week in a care home but its only 8 hours a week at minimum wage so dosnt help that much.

 

So, the situation is that even though I am working full time I get no wage and wont be entitled to claim any benefits.

 

Now my son is on jobseekers allowance he cant afford to pay much towards the household budget. He should be paying us rent but cant get any help towards it because he lives with a parent. We are living as cheaply as we can and I dont want to ask my son to leave but its annoying to know that if he lived with anyone but me he could claim rent.

 

 

Life is just like a constant battle and I dont seem to be able to see a way out.

 

Thank you for reading this.

[darkhorse53]

So if I understand the position,the business is breaking even but not paying either you or your friend a wage?But

does it pay back the loan?

If you owe back rent is this getting more or less?

Have you tried negiotating a lower rent with your landlord?

LOnger payment terms for your loan?

How long are you tied in with your lease if you decided it would be more cost effective to use your time in alernative employent?

I think the only way I could get it clear in my head would be to do 2 projections, the first keeping on the business and exploring all avenues for cutting expediture, reducing loan repayments,checking out benefit entitlement etc. and seeing where that leads.

The second letting go of the business and taking other employment and doing a debt management plan, you might find that you could be entitled to tax credits, housing benefit etc .There's a site called 'entitledto.co.uk' or 'entitledto.com'

 

It's important to get down on paper whether the business is pulling you further down and you are only sticking with it because you feel you have no option and you could be better off calling it a day and cutting your loses.

I know this can be a very emotive issue and I am in a similiar position, I'm just trying to work out whether I'm propping up the business or it's propping me up,how much could I reasonably expect to earn if I get a job? if I couldn't get a job , how the benefits would work out ?etc

 

I know I've given you more questions than answers, but I hope it helps anyway.There's always a way, it's just difficult to see clearly when you are so bogged down with it all. Good luck

[smouk]

Self employed people can claim tax credits - a must do if you're not claiming already as a whole raft of other benefits spin off from it.

[1stlifeline]

Thank you for the replies.

 

I have explored every kind of benefit and we seem to be in black hole. We can claim housing benefit but even if they agree we are entitled the calculator says we would only get £10.15 a week!

 

Have looked at council tax benefit and that the same- we dont qualify. The problem is that these forms and calculators dont take into account everything. OH pays child support but thats not taken into consideration so already we look as if we are better off than we are. We also have agreements on credit cards that we are having to repay on a monthly basis.

 

As far as the business goes, it does pay my share of the loan at the moment, my business partner has a job which supports his home and mortgage. We have had the rent reduced for a period as the landlord was understanding but even at the reduced rate we are still behind. In one way I feel we should call it a day and close btu that would still leave me 3 years of paying off the loan and rent arrears plus rent for the rest of the term. The lease is watertight, there is no get out clause. Part of me keeps hoping that the business will turn round but the weeks keep going by and the bills keep mounting. We have cut expenditure to the bone, thats part of the problem as well because we desperatly need to do some advertising and of course wonder if its good money after bad.

 

Sorry I sound so negative but Im just sick of the constant treadmill and probably feeling more down than usual.