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irlscoob
Guest
Hi,
Just looking for a little advice. I'm sure everyone know someone or has someone close in trouble with debts but here's my tale.
I have a family member who ran a small business as a sole trader (this form was insisted upon by the "employer/supplier"). She was then placed in the middle of a business model where the supplier had to be paid on time and also all taxes paid on time. When this whole venture started I pointed out the obvious flaw that the person who's not guaranteed to be paid was herself.
Needless to say the business spiralled out of control when the customers stopped paying and she took out various loans to pay the supplier and her tax, mainly VAT while waiting on her customers to pay up. The business ceased and the debts oustanding, personal due to the sole trader nature of the operation (I assume?) total about 30k. She is now not working, recovering from a couple of serious near death health scares and completely at her wits end as to how to handle it.
Her husband is working but on low wages, enough for them to pay the mortgage and survive. He knows nothing about the loans she took out.
The question is what options are open to her? I asked her to engage with the banks, who were at best mildly helpful and at worst threatening. In the case of the threatening one I told her to offer them 50% of the debt outstanding (which I would pay) and they said no chance. The reality is soon she won't be able to pay at all as the husband is retiring.
Given her situation can she do anything or does this just meander on until the bank take her to court (which will get no one anywhere as there is no money, there's only their house - I'm not sure how safe that is in that scenario though?) or is there a way to get them to seriously see this situation is a very bad one and adding more interest won't help it.
Thanks in advance.
Just looking for a little advice. I'm sure everyone know someone or has someone close in trouble with debts but here's my tale.
I have a family member who ran a small business as a sole trader (this form was insisted upon by the "employer/supplier"). She was then placed in the middle of a business model where the supplier had to be paid on time and also all taxes paid on time. When this whole venture started I pointed out the obvious flaw that the person who's not guaranteed to be paid was herself.
Needless to say the business spiralled out of control when the customers stopped paying and she took out various loans to pay the supplier and her tax, mainly VAT while waiting on her customers to pay up. The business ceased and the debts oustanding, personal due to the sole trader nature of the operation (I assume?) total about 30k. She is now not working, recovering from a couple of serious near death health scares and completely at her wits end as to how to handle it.
Her husband is working but on low wages, enough for them to pay the mortgage and survive. He knows nothing about the loans she took out.
The question is what options are open to her? I asked her to engage with the banks, who were at best mildly helpful and at worst threatening. In the case of the threatening one I told her to offer them 50% of the debt outstanding (which I would pay) and they said no chance. The reality is soon she won't be able to pay at all as the husband is retiring.
Given her situation can she do anything or does this just meander on until the bank take her to court (which will get no one anywhere as there is no money, there's only their house - I'm not sure how safe that is in that scenario though?) or is there a way to get them to seriously see this situation is a very bad one and adding more interest won't help it.
Thanks in advance.