My wife has a business (sole trader) which due to the recession is well down v previous years & I was made redundant 6 months ago from a very well paid job so things are now at a critical point. She has approx 6 months rent arrears, approx £15K tax arrears & various other creditors for the shop totalling approx £10K & approx £15K in CC debt. There is also the business loan which has always been upto date but is now two months in arrears & the bank are threatening foreclosure. We have a joint mortgage which is now 6 months in arrears but we have sold the house with the sale going thro as we speak. However there will be less than £10K equity once the mortgage is paid as well as a joint secured loan is cleared.We are not sure whether to let the sale go thro & move into rented & then her go BR or stay in the house & her go BR. Could we stay in the house for the foreseeable future (we have a young daughter)& would we still have to pay the full mortgage payment if we can agree to pay a bit towards the arrears which we were doing prior to my redundancy? If we do move into rented & the tenancy is in my name only would the landlords need to be informed of her situation? Would my wifes portion of the secured loan debt become mine if she went BR prioir to the house move? Got other questions but would like some guideance on these first Bit of a mess as you can see!
I see you have a lot going on and there are answers that could assist in part. However, I suggest that because your circumstances are complex, that you seek advice from one of the experts on the forum. There is nothing that cannot be sorted through one means or another. I always think that first of all stick together, give your partner support and vice versa - that is half the battle - find that we all have so much associated stress that sometimes you cannot see a way forward - there will be and I am sure one of the experts will come forward, if they miss your post - contact them - the details are on the site - marked experts!!
As Richard says there is a lot going on and I am sure that at the moment you are confused and need some careful guidance.
If you don't complete on the house and then petitioned for Br you would need to be able to pay the beneficial interest ( £10k plus estate agent fees & legals) PLUS come to an agreement with the current mortgage and the arrears.
you may be better completing the sale and
either 1. use some of the money from the sale to set up again in rented ( 6 months rent up front etc etc )and then look at the insolvency option
or
2. IF the business is viable ( and I would recommend a second opinion from someone who is not emotionally involved ) look at introducing some of the funds into the business.
You really need to carefully sit down with someone who can look at the business, the debts and help you prepare a plan that is achievable and will get you out of debt.
My wife has a business (sole trader)
Posted - 21 November 2009 : 20:13:03
