Question

I have an interesting debt problem, and I hope you can help. My business is closing down, the trade is just no longer there. I am in retail, just a small privately own shop. I owe about £20,000 in debts, and still owe on my rent for the shop, and also I am late on my business rates. I am wondering what my options are? I do have some stock left that may be worth £5,000, if I can sell it.

Thank you,

M

Answer

M,

I am sorry to hear you are closing your business down.

You may have some options, but it can depend on if you can sell the leftover stock you have.

If you could sell the stock for £5,000, you may be able to settle your accounts, using a full and final settlement.

If not, you could look into a DRO/or Debt Relief Order. These are for debts that are less than £30,000.

However, if you think you will be going back to work in some capacity, you could arrange a Token Payment Plan with your creditors for a period of time until you can arrange to resume regular payments.

Regards,

Jon

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