the last thing I want to do is take my Dad down

[MelanieGiles]

No need for an IVA if it is worth that much - as the sale proceeds will amply cover the debts (assuming there are no charges against the assets). Is this valuation realistic - personally I would seek on on a forced sale basis as you may be unpleasantly suprised about the difference.

[Viki.W]

Hey Melanie, what is a forced sale basis? I know what you mean about being dissapointed though, I suppose I just want the most I can get but as I haven't put it on the market yet, I guess it's only worth what someone is willing to pay. The valuation guy who I spoke to briefly on the phone, knows my restaurant and he was basing it on that, and the amount that other restaurants that were making a loss and had to sell in the area went for, (they had closed down). If I could go for an IVA, would I pay something monthly until sale or would they wait for sale? There are no charges on business, the only debts are the debts listed. thanks, a lot of questions I know, I appreciate the help. Kind regards, v.w

[MelanieGiles]

A forced sale really assumes that the business is not sold as a going concern and the assets are sold at auction or by tender sale.

If you could afford to make contributions on a monthly basis in the period prior to a sale, you would be expected to do this.

Ask as many questions as you like - I enjoy working with business people and am here all night! It is good for the brain power.

[Viki.W]

thanks melanie, I will be selling it as a going concern as I couldn't bear to close it down, my customers are wonderful and I think it will sell quicker if someone can see it operating. I would prefer to pay my creditors until it is sold. Another question if I may: if it doesn't sell for 82k or more would my creditors wait until I had a job to repay any outstanding debt? Also should I start the ball rolling now or wait until I can't pay? Should I give you a call tomorrow? Sorry to be so presumptius!

[MelanieGiles]

If it doesn't sell for £82k - then you can still do an IVA to offer the sale proceeds in full and final settlement.

How will you manage to pay all of the creditors until the business is sold? Are you intending on entering into a short-term DMP?

If I were you I would get some more prudent valuations and then by all means give me a call to discuss them? Is there any way you can turn this business back to profit making, as it is clear from your posts that you love what you do. Without needing to draw money out to pay debts, could you make some profits to cover your personal drawings and make some form of contribution to your creditors. £420 per month could possibly fund an IVA over a 5 year period.

[Viki.W]

I do love my restaurant, my Mum and I set it up eight years ago, she passed away a few years ago and I think the only reason I am hanging on to it is sentimental, although saying that, I couldn't imagine doing anything else. The takings have dropped from 3800 a week when I first opened to 2585 a week average now and for all the hours I put in, even if I were to take my debts out, it just wouldn't make enough to have a good life. My husband and I want to try for a baby now and I've been putting it off because I'm scared I can't afford to. I feel I have to be ruthless and sell up, I'm quite looking forward to getting paid for working! I suppose I should organise a DMP for now if you think that would be the best thing, would an IVA be rejected at this stage? I will get proper valuations next week. thanks Melanie.

[Viki.W]

Oh, just to add, I think that £420 would be affordable in my monthly budget based on projections for this coming year, would I then pay the full amount of £82k when the business sells?

[MelanieGiles]

I was only suggesting £420 as the minimum figure if you were to do a 5 year IVA without a sale at all. It seems that you have other priorities you now want to work towards, so if a sale is inevitable, you only need to make affordable contributions and they can be lower than the £420 if there is to be an asset realisation in the future.

Best to probably now speak specifically to an IP who can appraise your situation more fully and advise on all options available - but those valuations will be important.

[Viki.W]

Ok, thanks Melanie, will be in touch when I have some valuations and other details, hopefully in the next two weeks. I feel so much better knowing that I have some options. Appreciate all your time, v.w

[MelanieGiles]

Any time - I am aware how stressful this must be for you.

[wen]

Hi v.w, I ran my own business and for one reason and another we had to give up our lease, and lost everything. We are now bankrupt, and while with the figures you are quoting I am sure Melanie will work her magical powers and get an IVA sorted, I just wanted to wish you well! [:)]

[Viki.W]

ah thanks wen, it must have been awful for you. I thought of bankruptcy too but my dad is guarantor on the lease so I didn't want it to affect him. Hopefully I'll get a decent price for it and start over. Can't imagine not being there, I suppose I'll have to re-invent myself! Kind regards v.w

[Viki.W]

Hey all,

Just after some advice again please. I am waiting for valuers to come out this week to value my restaurant so until then I feel I can't move forward regarding a formal debt agreement. I have had a look at the letter templates on this site and would like to send letters out to all my creditors offering them token payments and asking them to wait for the sale of the business. I have a business bank account with tsb who I also have 6000k o/d, 18k bus loan, 23k pers loan and 13k credit card, I don't want them to shut my account as I use tsb cardnet to accept credit and debit cards in the restaurant.

My questions are:
1) If I send them this letter, do you think they will panic and probably take steps to shut the account.
2) Should I open a new business account with someone else before I even tell tsb, as I am worried that if I tell them they will put something on the credit file so it will be impossible for me to open a new account with someone else!
3) Whatever the business sells for, will I have to give it ALL to creditors? I realise that I have used the credit to fund the business and live on, as the business was making a loss, but what will we live on until hubby and I get jobs? We can't even apply for jobs yet as I don't know when it will sell!

At the moment we have never missed a payment to anyone as we have used credit to pay credit but that is why I realise I need to sell up and actually get a paying job.

Any advice would be appreciated, I love this forum, I kind of feel safe here, sorry if that sounds a bit mushy. [:I]

[Viki.W]

oh, if I can just add another little question, would I have to include my trading suppliers in an iva? I always owe them all a months payment but that is the terms so I am not behind with payments. Thanks v.w

[MelanieGiles]

I personally would look at offering all of your other creditors something on a regular basis until the position regarding the sale is more certain. You will need to include trading suppliers in an IVA, and as you have already recognised that you are presently insolvent, you should not order any further goods on credit that you will not be able to pay for. If you keep the accounts under normal trading terms this will be fine.

You must keep the cardnet service in place, as the withdrawal of this facility will directly affect the business, but make sure that you do not draw further monies on your overdraft that you will not eventually be able to repay.