www.iva.co.uk

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

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.

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).

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

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.

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.

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.