sole trader finance advice/help

[wils69]

Hi guys, im new on here and need a bit of help if possible.

I have a newsagents and for the last 4 months i have been on the brink of my 19k overdraft. I have 4 years of my lease remaining and have had an offer of around 30k (including stock...when counted)

I think it is a no brainer to sell, however, this will leave a large deficit as i have a 7k loan remaining from 30k i borrowed 6years ago. Also stupidly i have had to take money from my 7 visa cards, both personal and business, to pay wages recently and pay for stock. I owe just under 30k. I have been paying minimum payment on all cards for over last year.no missed payments but struggling this month tho as most cards at max level.

I thought i would have received more for the business but dont think i will. I am desperate to sell so i can sleep at nite. I was reading about bankruptcy then i saw a full and final settlement sites.

If I get around 30k for the business, i owe my father 5k that i would def want to pay and i will have solic costs/accountants etc to pay est 5k..leaving 20k left to pay the lot...
.

Would creditors accept this or will i have to go bankrupt??? Also my last tax year end was december 09 and do i have to complete my accounts for that and this year as no where near completed as had to reduce staff costs??

After i sell the shop, i will have no job, no assets ie home, as just seperated from wife, so will be unemployed.....i have not taken a wage last 3 months and struggled at parents house.

Sorry for all the questions but i dont know what to do or speak to.Any advice would be greatly received. Thanks
Graeme

 

[Leyla]

Hi wils69

Have you thought of contacting business debt line - free & confidential.

Never contacted them, but I'm sure they would have info to guide you as well.

Good luck, x

 

[Designs By Elle]

Have you got a proper loan agreement with your Dad? Did he lend you the money, or the business? If not, I think that would be counted as a lesser debt then your overdraft.
Sort out your debts by interest rate, as this is what the CAB will do (I've attended a few meetings with my sister, who was in a similar situation but with a beauty business).

Then see exactly what shortfall your offer will leave, leaving out any money you've invested yourself, your Dads money if it was lent to you and not the business or if you don't have a proper agreement, and anything on personal credit cards. It's harsh, but it's how they recommend doing it.

See if you could cope. Bankruptcy is a big decision and not one I'd recommend...I've seen first hand the damage it causes.

How much is your stock actually worth right now?

(Edit, I am a newbie here, and by no means qualified. I just have first hand experience of helping my sister through this, and the CAB and business debt help leaflets in front of me)

 

[Adam T]

Hi there,

It really does sound like you have had a tough year or so, its crucial you make the right decision for both now and the future.

Firstly there are other options than just bankruptcy.

Its hard to give any "unregulated" advice without knowing your full circumstances:

Other things being equal and if you were not paying your credit commitments, would you be able to afford to take a wage each month ???

 

[horsey1]

Hi

No need to go bust. So long as you have no secured debts tell your card companies that you are in trouble and to freeze the interest and you then offer to pay a lesser monthly payment. They will kick a bit but will accept genuine offers. PM me if you need further advice oh and my advice is free always.

Regards

W

 

[aleck.tpg]

Hi Wils69,

It's a hard one for you. You sound sick of the business and from all accounts you are just scrapping buy in terms of income. I understand about selling and if you have a buyer then bite the hand of them.

Bankruptcy is always the last call, but sometimes its the best route to take, as unlike a Trust deed (Scotland) or Debt Manangement Plan (DMP) it is final and you are not paying out to creditors thereafer, paying an Insolvency Practitioners fees subject to assets ownership etc.

I have dealt with many clients in your position and can only comment on my observations you will need to make your own mind up, but most of them have followed the following path:

Sold off all that they had and accrued as much by them as possible. Paid of who they could but always created from that resource enough to see them through to either a new job or a new project...... family then yourself first then creditors.

If you get an opportunity view our site (theprotectgroup.com) lots of case studies and a free download page with our business eBook covering most of what you are about to go through.

Finally if in your heart you really feel that getting out of the business is going to make you feel a lot better and free you up to think about a future outside the old business then go for it....... remember in this country your creditors cannot shoot you ........... at least not yet !

Hope springs eternal.

Regards,


Aleck.tpg.
Business Developement Manager.
The Protect Group™ (theprotectgroup.com)

 

[MyAccountantOnline]

Hi Graeme

Have you tried getting some advice from the National Debtline - they are extremly good -

http://http://www.nationaldebtline.co.uk/

They will be able to help and point you to people who can really help and explain your options.

You may be surprised at how they can help.