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| The independent answer to your debt problems | login join |
| conwyman | 18-07-2008 01:15 PM |
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Joined: 05 Dec 2007 Posts: 15 My Profile | I have been on here early this year about my problems with my debt I run a small business from home for five years. but since i took out a secure loan on my home to pay of my partners debts of £15,000 i am struggling with my own debts I have rung up the business debt line and i filled out a outgoings and ingongs form. my total monthly debt payment is 510.00 and the money i have at present to pay them is 178.00 so im - 338.00 a month which is getting me in a mess. I am no behind with everything just yet and i am up to date with the mortgage and loans the problem is how long can i go on My income as took a nosedive due to the summer period and it does pick up again late auguest to top it of i had to replace my van due to the old one letting me down I do want to carry on trading but the advise i got from business line was to go bankupt they said i wont loose my home because of no equity on it and i can still keep paying the mortgage and secure loan but i would prfer to go down to road of debt mangement whats the best advice? |
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| DW George | 21-07-2008 11:03 AM |
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Joined: 01 May 2007 Posts: 174 My Profile | Welcome back C man I am sorry to hear that you are still having problems with your finances. If you don't have any equity in your house then the creditors will not be interested in it. Therefore if you go bankrupt then the chances of you holding on to your house will be very high assuming that the current economic climate remains the way it is. It sounds that your debts are weighing heavily on you, so bankruptcy would clear all your debts, but not your secured loans. This may be the direction you need to take so that you are no longer distracted by your debts and you can focus on making your business a success. Did you take up any of the suggestions made back in December? Regards George |
| conwyman | 21-07-2008 07:34 PM |
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Joined: 05 Dec 2007 Posts: 15 My Profile | IF Bnkupty is the way to go what about my business will i cease trading and how can i carry on self-employed i use a business name so people paying by cheques would be a problem as my business account will be closed I would like to stay self-employed as i have tried to get back into employed work without success mybe the age but i have the quafications how would i open a business account? |
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| paladin | 21-07-2008 09:06 PM |
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Joined: 06 Jun 2007 Posts: 77 My Profile | Hi Conwyman I take it that your business is not a limited company. If it is not, then you'll need to open up a basic bank account which allows you some basic banking functions like a debit card. Operating as a "sole trader" means you can still carry on trading under your orginal name. Being bankrupt does not mean giving up your living. P |
| DW George | 24-07-2008 10:51 AM |
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Joined: 01 May 2007 Posts: 174 My Profile | Reading previous posts I feel that you are confused about what you can and can't do in business if you are made bankrupt. If your business is not a limited company then you are a sole trader. Being a sole trader means that you are responsible for the debts whereas in a limited company only the directors are responsible for the debts of that company. So if a limited company is bankrupt then the directors of the company are not allowed to set up another company for a year and the name of that company no longer exists. A sole trader becoming bankrupt does not have to stop trading, much in the same way as if they were employed they wouldn't have to resign from their job. Can you clear up whether you are trading as a limited company or a sole trader and because i think the advice from the business line is wrong. George |
| conwyman | 24-07-2008 11:54 AM |
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Joined: 05 Dec 2007 Posts: 15 My Profile | I am a sole trade and my business name is used in the yellow pages and yell.com as well as business cards and customers paying by cheque if that stopped i would loose the customers i have built up so with that i would be better to go on a debt magement programme going bankupt would clear the unsure debts but could affect on my business in getting new business and my trade accounts like i said everything is up to date and my overdraft is still ok but i need some help soon |
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| DW George | 25-07-2008 09:29 PM |
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Joined: 01 May 2007 Posts: 174 My Profile | If you are a sole trader then you can still keep your business name if you go bankrupt. You are right about the impact of bankruptcy on keeping your business account, however you don't really need a business account to trade. Yes a debt management plan may help you retain your business account but at what cost? Are you confident that you'll be able to clear your debts within a reasonable time frame, say 5-7 years. If not then you should consider the detrimental impact of having this debt and the benefits getting rid of it on you and your business. Debt management has its benefits as will bankruptcy or even a debt consolidation loan for that matter. What I think your main driver should be when making your decision is your projected income over the next 3 to 5 years. If income remains static to rising slightly then you should consider bankruptcy. If you are confident that your business will produce a really good income then either debt management or a debt consolidation may well be the route for you. Whatever the decision you make it must be a truthful projection of your business's income with a strategy of reducing its costs and increasing its income. |
| conwyman | 05-08-2008 04:15 PM |
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Joined: 05 Dec 2007 Posts: 15 My Profile | Thanks for the Advice but at the moment i am going to try and clear the debts I could have a contract in the next month if everything goes well which will clear the overdraft and then i can start clearing each debt one by one. If i can do this i can remortgage my house and clear the secure debt and i can start enjoying life. My income should improve anyway by the end of next month and the contract came out of the blue so things could be looking up and also i have been given a two day break in the lake direct free of charge the end of this month which should do me good so not every thing is doom and gloom at the moment thanks everyone for the advice and keep up the good work |
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| conwyman | 05-08-2008 04:17 PM |
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Joined: 05 Dec 2007 Posts: 15 My Profile | Sorry for the spelling but thanks everyone |
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| paladin | 05-08-2008 05:07 PM |
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Joined: 06 Jun 2007 Posts: 77 My Profile | No worries Conwayman, I hope the break helps you focus on what to do over the next year or so - get rid of your debt and be successful in your business. Good luck and keep in touch. |
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mcctank
| 09-08-2008 02:48 PM |
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Joined: 09 Aug 2008 Posts: 8 | good luck conway |
