So first of all it might be a good idea to find cheaper rented accomodation, more fitting with your budget. At the same time, you need to take a good look at your business and personal finances to see whether a more structured cashflow would enable you to trade your way out of the current difficulties.
Looking at the level of profits your business is generating, and assuming that you spend at least half of those on living costs, it does not appear that you can continue with contractual payments and are therefore probably insolvent.
Once insolvency is recognised, then your really have three options - debt management, IVA or bankruptcy. I suggest that you consult an insolvency practitioner who would be able to review your finances in greater depth and can give you the advantages and disadvantages of each option.
Regards, Melanie Giles, Insolvency Practitioner for over 20 years.
For further details contact me at
http://www.melaniegiles.com and view my IVA blog at:
http://melaniegiles.blogs.iva.co.uk
