Loan to pay old business debt

H

Hailstone

Registered User
Messages
1
Hello,

I used to have my own business that I had to close in 2011 due to the recession.

This lead to a legal dispute with a creditor that dragged on for 4 years and today at a judgement hearing I agreed to pay €19k (including legal fees) to avoid proceedings going ahead and placing a judgement on me.

I was not expecting this to happen today and had to make a very quick decision when confronted by my solicitor an lawyer who encouraged me to accept.

My only possibility with this now is to take out a personal loan. I have an appointment with my bank (PTSB)on Friday who I also have my mortgage with. (Since 2007 and now in negative equity).

I have no other debts, and I am in full-time permanent employment.

My question is do you think that I will be successful in obtaining the loan. My plan was to be completely honest and upfront with the bank and say why it was required but a friend of mine reckons that may not be a good idea and I should say it's for home improvement or something of that manner.

What do people here think. Any advice or other ideas would be greatly appreciated.

Thanks
 
You already have a negative equity mortgage so a home improvement loan is not an option. Also regulations/requirements for detail in respect of HIL's have tightened considerably. A 19k unsecured loan is highly unlikely to be considered as a runner by any bank. Particularly given the circumstances you describe. However, no harm in asking the bank!!
 
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