Help please! Personal debt to buy static caravans through my Ltd company: considering bankruptcy and scared..

[jdmw]

Hello, firstly thank you to this forum which I've just found today. Last year I bought two static caravans on a holiday park through a mixture of personal loans and credit cards and transferred the money to my business account. I already had a Ltd company that I had not used for trading since 2021.

One caravan I bought was a mixture of finance through the holiday park, I have recently voluntarily terminated that agreement and owe £2000.

Unfortunately the plans I had to let the caravans out and move abroad failed as my partner had emergency brain surgery and became seriously ill. I took out personal loans/credit in my name, and owe around 100k.

I have a small BBL from 2020 of around 6k

I am full time employed in Local Government and I'm not trading through my company now. I did rent out one of the caravan's last year but did not make a profit.

I spoke to Business debt line yesterday and have an appointment next week. I have been trying to sell the caravan but no luck so far and if it does sell i will make a significant loss.

I am considering bankruptcy but worried that I applied for so much personal credit at the same time to raise the funds, i may have committed fraud and I'm scared..

Also i will not be able to afford to pay my accountant this year so I don't know what I will do to file my accounts.

Can anyone advise of the best way forward? Business debt line suggested i may be eligible for a DMP as i will have a lump sum if the caravan sells.

However how would this work if i bought it via my business bank account and put the title in my company name? Any help or advice gratefully received as the worry of this is making me so stressed i can barely sleep and my partner is still seriously ill.

Thank you for reading.

 

[japancool]

i may have committed fraud and I'm scared..

Why are you concerned that you may have committed fraud? Did you submit false information or not disclose something you should have done?

 

[japancool]

However how would this work if i bought it via my business bank account and put the title in my company name? Any help or advice gratefully received as the worry of this is making me so stressed i can barely sleep and my partner is still seriously ill.

You transferred the funds into the company, correct?

In that case, the company owes you money, and that would be considered an asset that you own. The OR may demand that the company (which I assume you control) pay you back that money.

I am full time employed in Local Government

Be aware that, depending on what you do, you may be required to disclose your bankruptcy to your employer.

If you are bankrupt, you may also not be a director of a company until you are discharged.

 

[Michael Loveridge]

I am considering bankruptcy but worried that I applied for so much personal credit at the same time to raise the funds, i may have committed fraud and I'm scared..

Other people are better qualified to advise you in general terms, but you really don't need to worry about this unless you acquired the loans by deception. From what you've said you're a victim of bad luck, not a fraudster, and the authorities will recognise this, so the chances of any prosecution must be virtually zero.

 

[WaveJumper]

A pretty complicated scenario to unravel on hear personally i would start by sitting down with pen and paper and identifying what is actually "company" related and what is "private" ie who lent what where, when, figures etc etc.

As above it sounds like the "company" has all your money and assets, and you have been left personally with original loans and I assume these could well be linked to PG's. So it looks like there are two roads, one the company to sort out, and two your own "private" financial position, I am no expert in this field but there are forum members who hopefully will point you in the right direction.

As already mentioned as long as you have not obtained your funds "falsely" you should have nothing to fear, speaking to an accountant in the first instance might help unravel the paper trail, possible tax implications etc etc, but sit down and get all the fact straight in your own mind so you can lay out a very clear picture of what went where, when etc etc.

 

[jdmw]

Thank you for all your help and comments, when I took out the loans I got carried away and applied for multiple loans at the same time which is what I’m worried about…

 

[japancool]

Thank you for all your help and comments, when I took out the loans I got carried away and applied for multiple loans at the same time which is what I’m worried about…

There's nothing that says you can't do this.

 

[Lisa Thomas]

I suggest you speak to an Insolvency Practitioner.

It's hard to give advice on here because we need more information. For example, at the very least we need a split of assets and liabilities between you and the company.

Happy to have a chat with you. My initial chat is always free and confidential, and no obligation.

 

[HFE Signs]

You really need to take advice from an Insolvency Practitioner, it sounds quite complicated with the funding coming from multiple sources, you need professional advice with this one.