Refinance question as in big trouble

Hi Guys

where in big trouble, we are drowning in debt, due to been soft touches with our business, and people taking advantage and not paying us and probably never will as they know we cant afford to go after them through the courts.

We have various loans out including mortgage totallying 350K all in and we are in about 4 months arrears of about 15K on all these loans.

We are trying to sort out the business which is slowly starting to turn around and we picked up afew new clients and they are going on to a DD payment and so far in total we have 1600 a month retainer coming into the bank on DD we have one or two more coming on board next week. and I hope to try and get more on board over the next couple of weeks. We also have picked up afew one off jobs which will bring in 4K-5K in the next two or three months, when we get the work ( its 100% guaranted that we will get it )

We tried to arrange monthly payments on all our loans but it is working out to much and we cant manage. And its really hard to try and get new clients when you have creditors ringing every 5mins looking for payment.
We tried to sell one of our cars but in current market, we cant give it away. We are now trying to put the house on the market but again we probably couldnt give it away.

Are options are to hand back the keys ( but that dont solve the problem) Kill ourselves ( the way our luck is going we'd do it wrong) Give up the business and go on the dole (as there is no jobs out there and its sole destroying and still wont solve or problem) plus we are directors of a company so we wont get much help on the dole. We have no freinds that we can ask for money as they all have their own problems with job losses etc and family dont have it either.

Its a long shot but would the banks refinance our mortgage to clear the loans and for us to have one payment a month, as I checked the rates and 350K over 40 years is 1324 which we could manage. And as the business grows and the economy changes we can change the terms of our mortgage to pay more. We want to clear our mess up but its hard and at the moment I cant see any light at the end of the tunnel.

Any advice would be great as its getting really tough at the moment.

How much are you owed and is it properly receipted ? i.e. you say some people took advantage of your generosity - are they friends or that you just gave credit terms that were too generous ? The first thing I would recommend to do is to talk to a credit management company. Tell them all the debt outstanding and negotiate a fee. Do not pay up front for this. If you are owed say 100k you would expect to pay in the region of 10% to 15% to the recovery agent. 90% of something is better than 100% of nothing. More important, you will send a signal out to these people that you mean business and also if they are pushed and willing to pay they may try and negotiate a new deal and new business for you. Dont forget that these people are currently avoiding but if they are paid up they may look for more business from you. I can give a web site of one which I would recommend if you wanted to expore this and no I dont have any connection other than knowing the owner. He also does not go knocking on front doors with baseball bats either. You can PM me if you want any info on it.
Of course if your business is CC then I guess its no good to you.
On the mortgage side of things, you should try and arrange a meeting with the bank and see what they may offer you. It seems that you have nothing to lose in asking.

Hi,

It is essential at the outset that you understand there is a fundamental difference between mortgage refinancing and equity financing. Basically, with equity financing you are using the surplus amount you may have stored up in your property between your outstanding mortgage amount and the appraised value of your home.

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