Partners debts

I'm new to this forum and hope someone out there can tell me where to go next.

My husbands business has recently gone into liquidation- it was a limited company so I'm not overly worried about the debts there. Its mainly the revenue.

But he has loads of other debts which he has given a personal guarantee for. He owes 15k to car finance (car has been stolen and insurance paid up so this is the balance and he doesnt even have a car now). He has a credit card (Ulster Bank - v high interest rate) of about 9k - mostly used for business expenses but not a company card. He has business loans/overdrafts with the 3 main banks - I'm having difficulty finding out how much from him, had it out with him today and told him I want the balances and interest rates of them all tomorrow. Also credit union of 11k which was a home improvement loan. Hes behind on everything except the credit card which I am paying.

I've phoned MABs but it will be weeks before anyone can get to him.

Has anyone heard of lenders freezing interest on debts? On the Credit card I'm paying 340 per month and over 100 of this is interest (lots of cash advances).

Can any of them take our house? I'm paying the mortgage out of my money as hes currently not earning anything.

If we try to arrange repayments with the lenders will they want to take my salary into consideration or just his? I've never been involved in the company and we have no joint bank accounts.

I have 25k in savings which I have been dipping into each month for the past while just to keep things going despite major cutbacks in the household. I really dont want to use this to pay them off as I feel I would have no safety net.

I dont know what to tackle first so any advice would be appreciated.

Are you a director of the limited company? (it requires a minimum of 2 directors). Did you sign any documents when it was incorporated?

I think you need to get the husband to sit down asap and summarise every loan / debt and re-quote all of them in the Money Makeover forum. In addition advise what surplus cash you have every month after mortgage and bills are paid.

mathepac said:

Are you a director of the limited company? (it requires a minimum of 2 directors). Did you sign any documents when it was incorporated?

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Not the situation anymore ....

I'm definitely not a director of the company. The other director is my brother but the liquidator says we dont have to worry about him having liability as he never had any part in the company - it was only on paper. I hope he is correct?

As regards that sit down - its scheduled for tomorrow evening so I hope to know more then.

pjmn said:

... it is possible to incorporate a private limited company with only one shareholder...

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I never mentioned shareholders...

mathepac said:

I never mentioned shareholders...

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Fair point .....

It sounds like a very difficult time. I can empathise.

It would appear that some of the personal debts were accumulated in order to try and prop up the business which makes the financial entanglements more complex to unravel.

The personal debts / personal guarantees, regardless of why they were incurred or what the funds were used for, are secured against assets you own jointly or individually (as a married couple, from a lender's perspective) You might review what account / institution overlaps there may be between you both and seek advice about what may happen if these loans are called in or can't be serviced in accordance with agreed terms.

Zaor.. what was the outcome of your sit-down?..hope not too serious.. Suggest also that you contact MABS for advice