I need some advice and help as to what I can and cannot do. My situation is as follows:

I owe £200,000 for accounts, loans and supplies I ordered for my company. The company is in just my name as a sole trader. Some of the loans I guaranteed. My company is no longer trading as the companies I did business with are cutting back, or stating they no longer need my products. I am 4 months in arrears with everything, and being threatened with legal action by my bank, and some suppliers. I know they are serious about this. I own a property valued at £500,000, which is just in my name. It is a converted building made into 4 flats. I own this outright there is no mortgage, and that is my worry. If I am made bankrupt, I could lose this property. I had thought of it as my retirement. I live in one of the flats. I am unsure what to do?




I do understand your concerns and worries, and thank you for the detailed information. It does help in giving advice.

The first thought to mind is can you come to some agreement with those you owe? Are you working at all, earning enough to try and set-up some form of repayment plan?

If not, do you think you may in the near future?

If not, you could look at trying to settle the accounts, but this will require money.

Some might suggest a full and final IVA to settle the debts, but technically you are not insolvent. Your property is valued at more than what you owe. The simple answer is sell the property, try to settle the debts/accounts, and keep the remaining money from the property sale.

Depending on how the property is registered and the flats, you may be able to sell off the flats individually to pay the accounts, keeping the one that is your home. You will need legal advice for this, and an estate agent.

If you were to be made bankrupt, even though your technically not insolvent, the property would be an issue. Most creditors if they know you own the property, would seek a CCJ, and possibly a Charging Order against the property to insure their interests. Making you bankrupt would allow all your creditors to be treated equally.

You may have other options depending on if you have any other assets, earnings, or money on hand.

Let me know what you decide, and how you progress with this.



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