can anyone offer advice on negotiating

[p_cs]

I have recently had to put my limited company into liquidation, with the creditors meeting due to take place on Monday. As new company I gave personal guarantees on several leases, which of course I'm now liable for.

I have yet to have the exact figures remaining on the leases but they are in the region of:

Bank of Ireland £3200
CIT Vendor Finance £8500
Siemans £7000
HFLG £7000

I also have a personal credit card with Halifax at £1400. As the business has closed I am currently unemployed and would prefer to make a full and final settlement with each of the lease finance companies.

These lenders seem to be quite obscure, can anyone offer advice on what I should try to negotiate with them?

Thank you

[Soulgrowth]

Hi p_cs

I just wanted to welcome you to the Form ... I am not an expert but there are lots here that are ... I know that two of our experts are "out of town" today so there may be a bit of a delay in replying to your post ... but hang on in there, someone will be along shortly.

Debbie

[ianmillington]

Hi

The finance companies will not be able to quantify their claims until they have repossessed and sold the assets that are subject to their agreements. There is no hard and fast rule as to the amount each one will take but it will help your case if you speak to them all sooner, rather than later, and show yourself to be proactive. Tell them your problem and explain that you won't be able to fully settle the debt but will be looking to make them an offer.

Whilst noting you are unemployed, do you have any assets eg a car/house etc?

Ian

[p_cs]

Unfortunately the majority of the leases were for software, so there's no physical goods to take back. The Bank of Ireland was for a phone system, which they have already sold and I believe this is included in the £3200.

I have a car on finance but my house is worth £200K with a £108K mortgage and a £50K second charge.

[ianmillington]

Ok.
You mentioned making an offer in settlement. Is the money coming from a family member?

With the equity you say you have in your house it is conceivable that the creditors won't discount the debts. However, is it jointly owned? Clearly if you are unemployed nobody is going to lend you any more money on it. Even if you are in work, assuming a maximum of 85% LTV you couldn't realsie enough to pay the debts.

If the creditors won't deal there's not much you can do at the moment other than to tell the creditors about the pickle you are in and ask them for time to get back on your feet. Once you have found employment you have more options, possibly an IVA, although that would depend on all the circumstances of your case.

Hope this helps

ian

[p_cs]

Thank you.

The money would mainly come from a family member but the property is in my name only.

As you say though, I couldn't remortgage any until I find another job and realistically it's unlikely I will get a job on enough to borrow any more anyway.

[ianmillington]

At this point then I would simply contact them and explain the position. Confirm to them that you are not shirking your responsibilities. Tell them that you are looking for work (which I assume you are)and that you will keep them advised of developments.

Hopefully none of them will do anything daft and the position will be stabilised for a while whilst you sort yourself out. Hopefully you will soon find work (which must be the priority) and once you have then perhaps you can make formal proposals. I personally feel it is premature to be offering a cash sum in settlement if you are not even able to pay your mortgage at the moment, which I assume to be the case.