HI Everyone finally found the right place

[phil78]

HI Everyone and thanks for your anticipated time & help, having spent 2 weeks trawling the web for answers I realise I finally found the right place. Here goes
Mortgage £950k
House value £1.2mill (but who will buy it?)
Secured debts £70k
Unsecured debts £150k
Monthly personal outgoings £12k.
My business of 14 years went into administration last week (50% shareholder) and thus taking away £10k of month income. I have another very very small business that can bring me £1k per month. I have(or did have) an excellent credit rating & history, however I have no savings and suddenly £12k per month less £1k per month will leave me in a big a very big mess very quickly. Someone has suggested getting a mortgage holiday (£4.5k/month) until I can work things out, but is this legal and do I go DM or IVA? Putting my house up for sale next week - which took me 3 years to build and we've only been in it a year, thus the high debts.

[Michael Peoples]

Hi Phil.
I am sorry to hear about the loss of your business and now your home but also hope that you have come to the right place.
As usual there is no yes or no answer and more information would be needed before anyone could give you the advice needed.

First of all, you imply that the property is jointly owned. Are the unsecured debts joint and is the party who jointly owns the property the same person who owned the other 50% of the business?

Does the £150k include any shortfalls from personal guarantees given when the company was in operation? If not how much could be owed?

A mortgage holiday is not a bad idea and show the mortgage company the sales particulars which will satisfy them that the property is on the market for more than they are owed. Do the secured borrowings of £70k relate to the business and in whose name are they?

Given the level of your debt and your current income a DMP is unlikely to be viable and since your home is being sold anyway bankruptcy is clearly an option. However, an IVA may return the highest to your creditors and allow you to restart and I would urgently advise you to speak to an IP.

[liberta]

Hi Phil and welcome to the forum.

Like Michael I am really sorry about the failure of your business. These are indeed trying times.

Is your remaining business a Ltd Company, if so Michael's suggestion of bankruptcy may not be the best option for you as you would not be able to continue to act as a director of the company.

Like Michael I think that you should speak to an insolvency practitioner as soon as possible. Once he or she has a full appreciation of your financial and business circumstances they will be able to advise you on all of the options open to you. Any initial advice given by an insolvency practitioner is normally free of charge.

In the meantime I think that a mortgage holiday is absolutely essential and I would get onto your mortgagee imeediately to arrange it.

[kabby3]

Hello Phil...you have arrived at the right place!!

Everyone on here is full of good positive help. Melaine Giles and her team come very well recommended you can go on to IVA.COM and check out various options and companies. Good luck with all x

Karen [:)]

[Adam Davies]

Hi
A possible full and final IVA funded by your share of the proceeds from a house sale ?
If agreed you normally have upto a year to sell your property and will protect you from any creditor action.
Speak to an IP
Regards

[Skippy]

Andy, would a full and final be possible? If I'm reading this correctly Phil has a mortgage of £950k plus secured debts of £70k, making £1.2m of secured debt with the house being valued at £1.2m.

[Adam Davies]

Hi Skippy
I.2 million is 180k more than his secured[950k plus 70k =1020000]
I think ?
Regards

[Skippy]

Ooops, sorry, maths was never my strong point!!!

[stressed_suzanne]

Hi Phil, my business closed on October, and you're right, it's good to have people to 'talk' to that understand where you are.

We looked at all the possible options with companies recommneded on here. But the most important thing is to get in touch with them as soon as possible.

Good luck

[phil78]

This forum is a god-send I realise now this is not just my wife and I - its a journey I can share with others and, hopefully my experience can be of help to others.
Without a doubt I will be taking professional IP advice this weekend from those offered here.
I've been in business since I was 22, hard work but worth every hour/penny, and I daresay If I were 30 I would take the current situation in my stride; truth is I'm now 50 with 3 children (8, 13,15) and my current priorities are protecting them.
If my industry is anything to go by there are a lot of people following on behind me - and I mean a lot.
What has amazed me since making my initial post is that I cancelled 3 credit card payments on Wednesday - we had two of them on the phone before 8.00am this morning!!
I will keep everyone abreast of my developments and look forward to one day being able to pay back your time with some help and advice of my own.
Thanks

[Adam Davies]

Hi Phil
Good luck

[liberta]

Good luck from me too Phil. Making the first call for help is always the biggest step to take.

Unfortunately your creditors will start to hound you if you are not making the monthly payments. Just explain that you are having financial difficulties and are in the process of seeking advice about your options.

[kallis3]

Good luck from me too.

Check out www.iva.com where you can read reviews of IP's. Melanie Giles is one who posts on here and she comes very highly recommended.

Don't get bullied on the phone into making payments you cannot afford whilst you are sorting yourself out. The people on the phone are working on commision and will try anything to get money out of you.

Keep posting and let us know how you are getting on.

[Skippy]

Good luck with Phil, and please keep posting to let us know how you're getting on x

[susey]

good luck phil from me too[:)]