I hope you can help me find an answer to this question.
My debts are as follows:
£32,000 to HMRC, this is from the past 2 years.
£20,000 in various loans to my bank.
£8,000 in credit cards, 2 cards to different banks.
1 car on HP and 1 car on a personal finance contract.
I also owe around £10,000 to suppliers and various other individuals.
I owe all this due to my company experiencing a major downturn in business during the pandemic and lock downs. I am trading now, but not at the level I was prior to the pandemic.
I also owe £20,000 for a bounce back loan to the government. I took this out to keep my guys paid during the lock downs.
In total I owe nearly £100,000.
I have 2 properties I own, 1 I live in and 1 I let out. They are both up for sale, but it is not a good time to try and sell property.
The house I live in is worth £150,000, and I owe around £60,000. The rental house is worth £75,000, and I own it outright. It was my first house and I lived in it before I bought the house I have now.
My wife works, and is on the land registry for the property we live in, but not the rental house.
If I sell both properties, I can pay off all the bills and accounts. And my wife and I are in agreement that is what we wish to do. Get a fresh start. I may even close the company or sell it on, and get a regular job myself.
I would like your thoughts or ideas as to what are good options for me?
Thanks in advance.
On the surface it appear you have the answer or solution to your debt issue.
Just a few questions:
Are you in arrears with anything?
Have you thought of where you and your wife may live if you sell your home?
Are the properties currently listed for sale?
How are the debts structured? In your name, the company’s name, did you guarantee any accounts?
How is your business set-up? Sole trader, LTD, LLP??
Have you discussed your situation with the banks you owe, and if so what was their response?
As mentioned, you seem to have the solution in that if you sell both properties you can pay everything off, and yes, start fresh.
How is your business doing, and do you plan to continue with it? You may need to scale back if you are not trading at the level you were prior to the Pandemic.
Let me know how you get on with things as matters progress. In this market, houses are not selling very quickly.
Speak with those you owe, see what their response and what solutions and options they may have to work with you in the short-term.
Get back to me, and we can look at any changes to be made or adjustments, and any additional options you may have.