I've got in a terrible mess

[briggy2011]

i have read this forum for ages and empathise with a lot of people. I need advice for what has become a disaster for me...and it's my own stupid fault.

After some personal problems I suffered clinical depression and stupidly left my job of 22 years as I didnt want to be a burden. I was almost unable to leave the house for a year, didnt claim any money, lived off credit cards and got in more and more debt.

When I started to feel slightly better I tried to set up a business. I funded it with credit cards until they could take no more...then I applied for a business loan. I couldnt get it as I had no equity so I faked my fathers details on the form that he guaranteed the loan and faked his signature.

It was a terrible thing to do. I honestly believed the business would have worked and i have worked night and day to make it happen which when you are clinically depressed it is a tough thing to do.

It did work and I was getting on top then last month a company that owed me 12k went bust. It was a huge blow to me and has caused me to miss a payment for the second time in 2 years.

The bank called me in today and have given me 2 weeks to find a new bank...I made a huge mistake in faking my fathers signature and realise I have comitted fraud. i doubt if I'll get another bank and I certainly wouldnt fake the details again so therefore im bankrupt and will have to admit to the fraud.

i have scarcely slept in weeks and really feel like dying. I know I have made a terrible mistake and dont excuse myself at all.

Have any of the experts experienced anything like this before and could you even have a guess at what will happen? ANy input would be welcomed as i have no dea where to go now.

thanks for listening to me

[briggy2011]

i should have said there is no way i could ask my dad to help absoultely none

[catullus]

Not good briggy 2011, not good.

The implications of what you have done are severe. Is there any chance that a friend or another member of the family could pay the debt off for you, and you then pay them back?

If not,my advice is to own up to what you've done and take the consequences. If you do this with the parties involved, including your father, some of the worst implications such as criminal proceedings could well be avoided.

Trying to hide it at this stage will only get you deeper in to difficulty.

[briggy2011]

i am on my way to owning up i am just trying to work out what to expect...ive never been in trouble before and cant believe im in this situation now. i do have the stock that would allow me to pay if not all damn near all of it back i just dont know where to turn.

[catullus]

Is the business a limited company or you trading in your own right?

[MelanieGiles]

Honesty has to be the best policy here, and if you don't tell your father the bank surely will in due course. Yes you have made a very silly error of judgement, most of us have occasionally, but I am sure that your father will understand what led to that error, and will support you in whatever way he can to recify the problem. You will then need to ensure that you pay him back every penny you owe, if he does decide to help you out.

Regards, Melanie Giles, Insolvency Practitioner for over 20 years.

To have me propose an IVA for you, please visit:
http://www.melaniegiles.com/ivaEnquiry.asp

See customer feedback at:
http://www.iva.com/iva_companies/IVA_Advice_Bureau.asp

[briggy2011]

limited company

[MelanieGiles]

Well you can't use limited company assets to fund a personal debt, unless the company has no debts of its own and you only take out what your are entitled to take pro-rata to your shareholding. Surely if you sell stock to repay the debt, even if you are the sole shareholder this will affect the company's ability to trade? Isn't there anyway you can bring this loan back into line, and persuade the bank that you are still a good customer and will ensure that the default does not happen again?

Regards, Melanie Giles, Insolvency Practitioner for over 20 years.

To have me propose an IVA for you, please visit:
http://www.melaniegiles.com/ivaEnquiry.asp

See customer feedback at:
http://www.iva.com/iva_companies/IVA_Advice_Bureau.asp

[catullus]

Thanks

The reason for asking the question is that, if it had been you personally, it might have been possible to work out a personal repayment programme with the bank/relative. With a company, it might be a bit more complicated.

First things first, you've seen both my posts and Melanie's and we agree that you have to be up front about this. Is there a relative/friend, even dare I say it your father, who could pay this debt off, because this would be by far the best way of resolving this?

I won't be posting more tonight but will keep an eye on the board to answer any further questions you might have and take this on a bit further, but I;m sure other posters will give you words of encouragement, as well.

[briggy2011]

i sat with them today showed them that i have over 100k stock am owed in just over 27k and the only debt the company has is to them of just over 50k. they didnt want to know. i am just really concerned i end up in jail i reckon i could handle anything else but not that.

[chairmanmiaow]

briggy - why do you not feel that you can speak to your father about it?

Is it because of shame about what you've done, how he's likely to react, or something else?

[briggy2011]

hes old and has recently suffered a major heart attack...that and the fact it was me that got in it i need to take the responsibility and the consequences. The really sad thing is and I know it sounds like an excuse is that I genuinely wasnt in my right mind when i made the decision. Its only know looking back i see what kind of mental state i was in...i know that sounds a cop out its not and doesnt change the facts.

[bagpuss]

i really do feel for you...no matter how big or small we all make mistakes...bad choices at one time or another. Just a thought but have you spoke to CAB...? wonder what advise they might have for you.

Angie xx


My IVA Story......http://bagpuss.blogs.iva.co.uk/2007/09/ ... iva-story/

[chairmanmiaow]

briggy,

I agree that it's important to take responsibility for sorting your own problems out, but sometimes things can get bigger than you are capable of dealing with quickly, and asking for help before it gets out of control can be a responsible act in itself.

You know the precise circumstances of the situation, but from what you've said here, I know if I were in his position, I'd much rather find out one of my children had got into trouble (albeit through their own error of judgement) sooner rather than later.

You should consider whether it's likely that if you try to avoid him knowing, he may end up finding out from a third party such as a creditor; if that's the case, is it better he finds out from you? It will be a very difficult conversation to have, but ultimately, what do you think he'd rather you did if he knew the situation you were in?

CM

[ray_a]

Briggy

Is there another close member of your family you can talk to so that you can approach your father together.

I think that given you have committed a fraud on the bank it will be difficult to get any banking arrangements.

It might be therefore better to look at the sole trader basis of trading and use a basic bank account.

You might be able to make a sufficient income to pay your Dad back.