Debts, assets and payments

berini

Registered User
Messages
10
Hi, any advise.
Debts:

Credit Card (Visa) €7750 since 2012, I offered the Debt collection agency "Cabot" €30 p.w and they accepted with a review in 6 months.

Maintenance arrears of €9450 judge ordered to be paid at €80 p.w along with current maintenance of €325 p.w. I have awaiting an appeal date in relation to the arrears of €80 p.w.

Limited Company with me as only employee VAT of €12000 due up to end of 2013, The Revenue solicitor accepted an offer of immediate payment of €2000 and €100 p.w.

Premise rates of €11000 - 3 years rates.

Loan due to family member €7500.

Income €500 p.w.

Assets:

Company premises - owned by me and value approx €125000 - no mortage, it is in an Industrial Estate and this type of property remains at the bottom of the market.

House, no mortgage, value approx €375000.

No savings or other assets except pension, amount of approx. €120000, of which I took 25% of the value 3 years ago, and can not be cashed out again.

Potential to legally divide house (I have pre-planning approval) into two seperate properties a 3 bed and a 2 bed. Auctioneer says value of 3 bed approx €300000 and 2 bed approx €200000. the cost of this division would be approx. €30000.

I don't have €30000 and the bank refused a mortgage / loan of €40000 on the basis that they could not consider mortgage repayment from rental income. I did not ask about repayment in the event of selling same. I think that my Credit Card debt was the real reason! altough I did say that the Credit Card debt could be paid from the €40000 loan.

Where and how am I to get the €30000 or €40000 to carry out the division? I had thought of asking a friend to be a guarantor for the bank loan and giving him a legal guarantee of the Industrial premises. I can't see any other way out of my financial situation except of course selling the house or the premises but this would not realise maximun potential. Typically would a bank go for this arrangement?
 
Why would a bank lend you money? You have arrears all over the place and a judgement against you.

It seems to me that you can't afford the house and it also seems to me that you don't need such a big house, so you should sell it and pay off your debts and arrears.

If you really want to keep it, then you should sell the industrial premises.

But the more fundamental point you have to ask yourself is how you got into this mess. I would guess that you have a very unprofitable business and you would be better off working for someone else.

Brendan
 
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