I took out a lease in December 06 for 3 years on a small unit. At the time I had no funds for a deposit and had to give a personal gurantee. In August of 07 i had to stop trading followeing the loss of my main client. Following health problems in October 07 and collapsing due to stress I had no choice but to hand the keys back to the Landlord. Yesterday I received A SD from the Landlords solicitor for £4500.00 approx. This came as a shock as I thought the SD had come from Nat West which I had thought I had resolved. The issuing agent had sent a letter but did not indicate for whom he was acting for other than that he was issuing a SD. I am currently self employed and finding work hard to come by. I have lived in rented accom for 5 years and have no savings nor do i own a car.My assists consist of my family possesions and tools. i do not own property overseas. My total personal debt is no more than £11,000.00. My question is can the landlords debt (which includes rent after the keys had been handed back) be included in a IVA or do I bite the bullet and go bankrupt. I belive the SD is bully boy tackticks but Im not sure which way to approach it. If needs be I would go bankrupt my credit rating has been bad for the last few years so a few more would not be any harm.
Yes the debt to the landlord should be included in an iva although based upon the numbers you are indicating if the landlord were minded to do so he would appear to have the voting strength to block it. That of course would most likely depend upon what your proposal says and you've sadly not said anything to suggest that you would be in a position to make a credible offer.
Your basic tools of trade and basic personal possessions would not fall within the bankruptcy so you would not be prevented from earning a living (unless running your business needs credit which a bankruptcy would render well nigh impossible). What do you do for a living?
Ian
Ian Millington
Insolvency Director
PDHL Ltd (formerly Personal Debt Helpline Ltd) www.pdhl.co.uk
Secondly, if you have less than £15,000 debt, you are unlikely to get an IVA.
Sharing from experiences of dealing with debt
The greatness of a man is not in how much wealth he acquires, but in his integrity and his ability to affect those around him positively.
Bob Marley. http://kallis3.blogs.iva.co.uk
Thanks Size5, I was having a bit of a senior moment there!
Sharing from experiences of dealing with debt
The greatness of a man is not in how much wealth he acquires, but in his integrity and his ability to affect those around him positively.
Bob Marley. http://kallis3.blogs.iva.co.uk
I had a similar problem in that I was liable for the ongoing payment of a lease which had a further 7 years to run. Luckily I was already in and IVA and was able to offer a full and final settlement to my creditors on the basis of me being able to surrender the lease. What I am trying to say is that even if you entered into an IVA you would still be liable for ongoing lease payments. One way of getting out of your liability to the lease would be bankruptcy.
