www.iva.co.uk

Hello, I wonder if you experts could give me some advice, my situation is basically this:
I run my own business as a self employed sole trader and realistically the business has been struggling for some years so I have had to resort to loans & credit cards to pay the bills and now find myself owing around £26,000 in unsecured loans & credit cards in my sole name.
I own a house jointly with my wife although I believe we are what is called ‘tenants in common’ 10/90 in favour of my wife which was suggested would protect our assets in case the business failed. (I can’t find this in writing anywhere but guess it may be written into the deeds, which are of course held by our mortgage company)
It has been suggested that I consolidate my debt into a loan or re-mortgage secured on our house, but am worried that this would put my wife’s share of the equity at risk. I estimate that our house would be valued at around £170,000 and there is a mortgage of about £18,000 outstanding.
Do you think that there is a way to raise a loan on my share of the equity that I could offer to my creditors in ‘Full & Final Settlement’ or is there a better way, perhaps an IVA?
Thanking you in anticipation

Hey there, welcome to the forum. I can't help with the mortgage bit, sorry, I'm sure an expert will be along shortly to help you.

Would your wife be willing to re mortgage and pay the debts off in full?

If your business has been struggling for a few years it might be better to think of selling it if you can't turn it around. My business was making a loss but I kept at it thinking things would change, but they didn't and I am now left with a high level of debt.

I advise that you speak with an Insolvency Practitioner to discuss ALL of your options.

Good luck, Viki X

Thanks for your reply Viki.W

You ask "Would your wife be willing to re mortgage and pay the debts off in full?"
The answer is probably yes, but I don't know that we could afford the mortgage repayments and it seems unfair to ask her to put herself in debt to pay off mine!

You suggest selling my business, but there is realistically nothing to sell, no ownership of premises and only a very low value of stock & assets amounting perhaps to £3000.

At 58 I might possibly find some kind of job but it would not produce a high income

I was hoping for some expert advice before making another bad decision, so can anyone recommend an Insolvency Practitioner please.

Thanks

Hey there,

Yes, I can recommend Melanie Giles, you can get her details from the "meet the experts" page.

Viki X

I would suggest that you do need to explore whether a re-mortgage is a sensible option for you, as your creditors are unlikely to wear a 10/90 split of equity between you and your wife - especially if this ratio was agreed to keep your interest in the property away from potential creditors.

If this is not possible, maybe a sale of the property and the purchase of a cheaper one might be a sensible option.