A few concerns about going into an IVA as directors of our own LTD company.

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Bob.21

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Post by Bob.21 » Sat Jun 20, 2015 4:59 am
Hello,

My wife and I are directors of our own LTD company which is now in reasonable shape but have unsecured personal debts of around 170K between us. We are considering both going into an IVA but 2 things concern us.

1. Due to some family problems we have found trading tough in the last few years and In these lean times we have used personal credit cards to pay some of the business debts. We aren't sure if this would be taken into account and the company made to pay these or even closed down.

2. Our home is worth 500K and only half is mortgaged but there exists a second charge on the property for a business loan of 200K which comes to an end in 5 years time. How do we stand with the property? I should also mention that part of our property is used for the business which pays us rent.

Thanks for any help in advance.

Bob
 
 

luluj

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Post by luluj » Sat Jun 20, 2015 7:29 am
Welcome to the forum ... I am not sure forum advice will be sufficient for you. Your complexities as explained need to be addressed by specific IVA/Debt solutions professionals with experience of self employment..there will be a solution for you I am sure.
Sharing from experiences of dealing with debt

There is a solution for everyone .... Just need to stay positive !

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Foggy

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Post by Foggy » Sat Jun 20, 2015 9:59 am
Hi Bob. I, too, would suggest you chat to a few Insolvency firms, specifically those with experience with self employed. Have a look around the forum and you will see who provides good service ( and who doesn't).
My opinions are merely that .. opinions based on experience. Always seek professional advice.
IVA Completed 23rd July 2013 .... C.C. 10th January 2014
 
 

MikeyM

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Post by MikeyM » Sat Jun 20, 2015 6:51 pm
No expert and not passing judgement, but if you are having to use personal credit cards to pay business debts doesn't that mean your business is insolvent, and to continue trading knowing this to be the case is illegal.

Maybe not illegal but it does seem very complex

http://www.companyrescue.co.uk/director ... -insolvent
Last edited by MikeyM on Sat Jun 20, 2015 6:58 pm, edited 1 time in total.
 
 

Michael Peoples

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Post by Michael Peoples » Sat Jun 20, 2015 7:30 pm
Paying te company debts is effectively a loan to the business and as such should be repaid. If you enter an iva YOUR IP would expect these debts to be repaid if the company can in addition to your monthly payments. The company accounts will show this.

You also need to check the articles to keep yourself right but your IP will be able to advise you on this.

Your property should be dealt with in the normal way with equity release in month 54.

It sounds like an IVA is an option so get some free advice.
Michael Peoples | McCambridge Duffy Insolvency Practitioners
http://www.mccambridgeduffy.com
If you would like to talk to me about proposing an IVA or have any questions at all please visit www.mccambridgeduffy.com
 
 

Lisa Thomas

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Post by Lisa Thomas » Mon Jun 22, 2015 9:33 am
Speak to an IP local to your area to get advice for you personally and the Limited Co as it may be time to think about ceasing to trade or Liquidating. Most good IPs should offer you a free initial meeting or advice over the phone.
I'm a licensed IP with 16+ yrs at Neville & Co covering the South West area. I have a YouTube channel with advisory videos on here: https://www.youtube.com/channel/UCMPTTu ... Z5k9ZcC2MA http://www.nevilleco.co.uk 01752 786800 Lisa@nevilleco.co.uk
 
 

lifenoteasy

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Post by lifenoteasy » Mon Jun 22, 2015 2:27 pm
Bear in mind that you would be removing the opportunity to access funds should you go into an IVA.

70% of the people that I did work for over Feb/March paid late - it has taken me 4 years to get to the stage where I could compensate for that type of scenario.
IVA started March 2011, Completed March 2016 and certificate issued 11 days after final payment. It was not always easy but then some of the best decisions aren't.
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