- Original Poster
- #1
I'm very glad to have found this forum, and the ability to post questions anonymously. The international nature of my problem means that asking conventional debt help agencies has its limitations. Here's my situation. I live in Latin America (I have done, on and off, for many years). Two years ago, I got accepted onto a prestigious MBA program in the United States, and I took the opportunity. I am a UK national. I live in Latin America for family reasons -- I have kids there, and I couldn't leave without being separated from at least one of my children. As such, when I was on the MBA program, I couldn't really find work that reflected my earning salary in other parts of the world, and so I started a new, UK-registered business. I did it because my business has an international profile and having it headquartered in the country where I live wouldn't sit well with potential clients. During the MBA, I was only able to work really limited hours, and I very quickly racked up debts of GBP30000. Some of this debt was from a previous venture, it just got worse during the MBA. What's more, I have a debt with an international loan provider to MBA students in the region of GBP40000. This is a specialist international lender for graduates from high ranking universities which is not based in the UK but can chase debts in the UK or anywhere else in the world. So that makes situation very complicated.
My business has started to take off, I provide a very specialized service to clients internationally, in a field I know well, and the money is coming in. But the business bank balance is in zero, because everything I earn has to get funneled into paying back friends and family who have helped me do the MBA.
The thing is, I am now in a situation where I could probably pay off my MBA (international) debt, still meet family commitments and grow the business. But the issue of the old UK debt still hangs around my neck, and at any moment soon the credit card lenders might jeopardize my position as a director of a UK company. The big questions are, what are my options?
Here are the options that I've thought of:
(1) Enter a debt management plan for UK debts, and deal with the international debt independently (the big question here is, would the UK credit card lenders accept a non-UK institution getting a fast-track payment). Would they also accept that I need to get enough money over to live off, including enough money to pay off my wife who has lent money to get the MBA done.
(2) Bury head in sand and just things collapse (unfortunately that's what I'm doing right now, debts are unpaid for 4 months). The accountant that I hired in the UK has pulled out of my venture because they say they have no experience in dealing with an international business
(3) Look into insolvency options. Here there are some considerations. You have to be in the UK to do this, but I could be in the UK to oversee this. Then, transfer the business operation to another jurisdiction. Maybe Ireland. Maybe either Canada, and the U.S., as with my MBA program there may be some way of nationalizing in those countries.
(4) Go insolvent in UK and just register my business in the Latin American country where I live. Maybe this is not the end of the world, and I am not planning to return to the UK for some years, so there is a possibility.
I prefer to do the honorable thing and go for option 1, and the money is starting to roll in now with the new business, but it maybe not enough to cover all debts. I currently work like 15 hours a day, doing my business and like 2 more jobs, but this is obviously unsustainable in time, with kids and all.
My huge question to this forum is, IS THERE ANOTHER PATH OUT THERE THAT I HAVEN'T THOUGHT OF??????
My business has started to take off, I provide a very specialized service to clients internationally, in a field I know well, and the money is coming in. But the business bank balance is in zero, because everything I earn has to get funneled into paying back friends and family who have helped me do the MBA.
The thing is, I am now in a situation where I could probably pay off my MBA (international) debt, still meet family commitments and grow the business. But the issue of the old UK debt still hangs around my neck, and at any moment soon the credit card lenders might jeopardize my position as a director of a UK company. The big questions are, what are my options?
Here are the options that I've thought of:
(1) Enter a debt management plan for UK debts, and deal with the international debt independently (the big question here is, would the UK credit card lenders accept a non-UK institution getting a fast-track payment). Would they also accept that I need to get enough money over to live off, including enough money to pay off my wife who has lent money to get the MBA done.
(2) Bury head in sand and just things collapse (unfortunately that's what I'm doing right now, debts are unpaid for 4 months). The accountant that I hired in the UK has pulled out of my venture because they say they have no experience in dealing with an international business
(3) Look into insolvency options. Here there are some considerations. You have to be in the UK to do this, but I could be in the UK to oversee this. Then, transfer the business operation to another jurisdiction. Maybe Ireland. Maybe either Canada, and the U.S., as with my MBA program there may be some way of nationalizing in those countries.
(4) Go insolvent in UK and just register my business in the Latin American country where I live. Maybe this is not the end of the world, and I am not planning to return to the UK for some years, so there is a possibility.
I prefer to do the honorable thing and go for option 1, and the money is starting to roll in now with the new business, but it maybe not enough to cover all debts. I currently work like 15 hours a day, doing my business and like 2 more jobs, but this is obviously unsustainable in time, with kids and all.
My huge question to this forum is, IS THERE ANOTHER PATH OUT THERE THAT I HAVEN'T THOUGHT OF??????
