H
help4family
Guest
Member of my family's husband signed personal guarantees for business loans. Business is essentially bust but they have not officially closed. (Limited co)
Outstanding loans:
personal car loan 20k to bank (restructured)
credit card: 3k (in arrears of a few months)
personal loan: 5k (now gone into arrears)
arrears for business supplies to 2 companies totalling 14k - personal guarantee on these
House with outstanding mortgage of 80k approx, (paid 185 - prob would get 80k on open market now)
2 children school aged
The spouse who ran the business has made no income from the business in circa 2 years.
The only real income is child benefit for 2 children and approx 350 euros per week after tax for other spouses salary.
The family are getting anything in the way of family income support (taxes not up to date for the company so cannot claim and can't afford accountant to do books), nor mortgage interest relief, and unemployment assistance is nil for the unemployed spouse as was obviously self employed.
Judgement has been awarded for 8k to one of the business suppliers, with sheriff due in the next week.
Only assets is the car, which would probably get 8-9k on open market and any possible equity on the home.
My question is, what is the likelihood of repossession of the home occurring, either for this debt or one of the others? I would imagine the sheriff will start with the family car and possibly clear this debt but then when the next lender receives a judgement what happens? How likely is it that this family will have their home repossessed in the current climate? And if so, how does the bank who hold the mortgage work this out with the creditor who has gotten the judgement?
With a total income of 1680 pm and rough outgoings as follows:
Mortgage is 950.
Food is 400.
Electricity is 60.
Phone: 35
Petrol: 200
Car insurance: 40
Car tax: 50
(above budgets are approximate.) - living in a rural area with no way of getting kids to school or spouse 1 to work/groceries without car.
Any advice for this family?
They have been to mabs and have exhausted all savings and sold personal items in order to get this far.
Outstanding loans:
personal car loan 20k to bank (restructured)
credit card: 3k (in arrears of a few months)
personal loan: 5k (now gone into arrears)
arrears for business supplies to 2 companies totalling 14k - personal guarantee on these
House with outstanding mortgage of 80k approx, (paid 185 - prob would get 80k on open market now)
2 children school aged
The spouse who ran the business has made no income from the business in circa 2 years.
The only real income is child benefit for 2 children and approx 350 euros per week after tax for other spouses salary.
The family are getting anything in the way of family income support (taxes not up to date for the company so cannot claim and can't afford accountant to do books), nor mortgage interest relief, and unemployment assistance is nil for the unemployed spouse as was obviously self employed.
Judgement has been awarded for 8k to one of the business suppliers, with sheriff due in the next week.
Only assets is the car, which would probably get 8-9k on open market and any possible equity on the home.
My question is, what is the likelihood of repossession of the home occurring, either for this debt or one of the others? I would imagine the sheriff will start with the family car and possibly clear this debt but then when the next lender receives a judgement what happens? How likely is it that this family will have their home repossessed in the current climate? And if so, how does the bank who hold the mortgage work this out with the creditor who has gotten the judgement?
With a total income of 1680 pm and rough outgoings as follows:
Mortgage is 950.
Food is 400.
Electricity is 60.
Phone: 35
Petrol: 200
Car insurance: 40
Car tax: 50
(above budgets are approximate.) - living in a rural area with no way of getting kids to school or spouse 1 to work/groceries without car.
Any advice for this family?
They have been to mabs and have exhausted all savings and sold personal items in order to get this far.