if the company goes bust

[hopeitsnottoolate]

hi.i have a business which is looking likely to go bust if i don't win a contract next week. if the company goes bust i have given directors gaurantees to a £30k overdraft and a loan which has £8 left to pay, there is also a directors loan account of £24k. my question is, if the company goes bust can the debts from that be considered in an IVA. we can't remortgage to release equity, the home is worth £350k and has £266k left on it. our debts if the company goes bust will be £95k. we would have approx £500 p.cm leftover money

[MelanieGiles]

Hi there hopeitsnottoolate and welcome to the forum

Does the company have any assets which could be realised to pay off the creditors, and is the director's loan payable to you or by you to the company?

The only debts from the company which can be included in an IVA are those you have personally guaranteed. Is your property jointly owned, and if so are the debts just in your name? Do you have other debts personally as well as the guarantee liabilities?

I suspect that you are better off at this stage discussing this matter with an insolvency practitioner experienced also in corporate insolvency. Most of us are, but the large "IVA factories" probably do not have the ability to give such detailed advice.

[Reviva UK]

Hi there

I would absolutely agree with Melanie. The last thing you need is one of the IVA companies heavily advertised .

what you definately need is a medium size practice IP where you will be assisted by a skilled professional who can not only propose an IVA but can unravel the business situation .

Would highly recommend you give melanie a call. Check out her reviews on this site - I suspect you would struggle to do any better!