When do you decide to take the plunge ?

[mrcanoe]

Hi

Firstly, a terrific site and a real help - that's what I need right now.

In May 2007 I realised I had a problem £81K in debt to mainly Credit Cards and 3 unsecured loans. I decided to take urgent action and 15 months later, I have reduced the debt to £69K.

However, the credit crunch has now hit my business and for the first time in 15 months the debt has started to go back up again !

Do I go for an IVA now or hold on for a few months to see if the situation improves - the signs do not look good.

I am a sole trader - will placing the business into a limited company protect it ?

What is the minimum amount of offer you can make - I heard that it used to be 25p but that has risen to 40p ?

Thank you

[Viki.W]

Hey mrcanoe, welcome to the forum. Sory you're having problems with your business. If you have a profitable business and it's your debt repayments that are crippling you then I would talk to an Insolvency Pracitioner as soon as possible to go over ALL of your options. Melanie Giles comes highly recommended and deals with the self-employed.

You would offer all of your disposable income and that would determine what the dividend would be. There is no minimum. Keep posting and please hang in there for an insolvency expert to help you. X

[kallis3]

Welcome from me too. I agree with everything Viki has said.

You're certainly in the right place for support and advice.

[facingittogether]

hi and welcome from me too!

me and hubby had debts of £160000 (am not proud of it) but our iva got accepted at 30 p in the £1.

you are in a great place for support and advice and hope fully an expert will be along shortly!

love barb x

[MelanieGiles]

There is no harm in having a chat with an isnolvency practitioner - and I can confirm that there is not a minimum dividend criteria of 40p or 25p - although common sense should prevail in putting forward an offer.

Transferring your business to a limited company is unlikely to help, because you are currently personally liable for your debts and incorporation will not change that - that will only occur for new debts created. I cannot see any benefit in going down that road to be frank.

An insolvency practitioner will be able to help you assess the future viability of your business, and work out trading forecasts to see if you would be able to trade out of your difficulties. Sometimes it really helps to share things with a total stranger, so you really have little to lose.

[aguise]

Hi there and welcome to the forum from me too.

All the best to finding a solution, and let us know how you get on
Ang

[Soulgrowth]

Hi ... and welcome to the Forum. I would echo what everyone else has said ... a talk with an Insolvency Practitioner might really help you to look at the options ... and it's always good to be in control of things before they take control of you.

Good luck, and keep posting to let us know how you are getting on.

Debbie

[plasticdaft]

Welcome,good name btw.