Looking for advice on debts with my business and personal guarantees.

H

honeymonster

Guest
hi all i run a small business that is deeply dependent on the construction industry , i have about 250 k of leases and now the equipment aint worth half that, i owe the vat man 40k and i owe suppliers 100k and another 100k of personal loans , now here is the problem , i have a house with my wife worth about 250k and the mortgage is 160 k. now if i go bust in the morning is my house at risk as i have taken personal gaurantees on these loans. the business is limited with only 1 year these loans etc were taken out before that . the income on the business has dropped dramatically ,
 
Re: help

I would get legal advise- I not sure but i always taught that one of the family home acts would protect wife and family. Ask legal expert if house is safe or is it worth transferring into wife name only.
 
Hi Honeymonster,

I'm very sorry to hear about the position you are in. I'm sure it is very stressful. As papervalue has said it would be very important that you get legal advise on this. Have you had any meetings with your accountant to discuss the implications of you putting the business into voluntary liquidation? If this is the case then the following would be the scenario. You would appoint a liquidator who would handle the liquidation. As it is a limited company he would take charge of all of the companies assets and liabilities including any monies owing to revenue. The only things you would be liable to pay for are those items on which you have personal guarantees. For example, if you have equipment that was purchased on hire purchase or lease agreement (and you signed a personal guarantee) then the liquidator would sell these, pass the proceeds to the bank and you would be liable to pay the difference. Now you would have to communicate with the bank with regard to how you propose to pay what you owe them. They cannot simply take your house but may request security from you.

I cannot impress enough how important it is that you get advise as soon as possible. Good luck.
 
Take a look at these guys ,there very good and helpful and will meet you for a full assessment of your situation, I've recommended this company a few times on this site recently as a friend who went through a liquidation of his business and general business turmoil said they helped immensely. I'm sure they can help you or advise how you can limit your personal liability before liquidating. You don't want to leave yourself open to a reckless trading charge which could lead to you being liable to more debt than what you personally guaranteed . Good luck ! NO AFFILIATION.
 
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