Property repossession guide
If you have fallen into arrears with your monthly mortgage repayments, there is a real risk of repossession. Repossession occurs when a mortgage lender reclaims a house and sells it to make back the money loaned against the value of the property.
Borrowers face having their house repossessed if they miss mortgage repayments and cannot make up arrears. In times of economic slowdown, vulnerable borrowers such as first-time buyers or sub-prime borrowers face a greater risk of repossession.
Repossession is a last resort for mortgage lenders, and the majority of mortgage arrears do not end up in repossession. Some lenders may reach an agreement with the borrower to pay off money owing.
Please call our hotline for urgent advice: 0800 800 6096
Earlier this year John Stepek of MoneyWeek speaking to BBC News 24 on February 8, 2008 discused the rise in numbers repossessions in 2007 and 2008 as the property market declined and also the collapse of buy-to-let market. During the later months of 2008 we have seen the deeping global financial crisis in the U.S. and here in the UK.
Please call our hotline for urgent advice: 0800 800 6096
SAVING YOUR BUSINESS GUIDE (Facing Financial Difficulties or repossession of Business/es and/or assets)
Although the DTI have recently published a report exploding the myths about some of the risks business face (revealing that over 80% of new businesses survive their first year), it is still true to say that many businesses don't last much longer.
Running a company is risky and running into financial difficulties is a common problem.
Bankruptcy applies to people such as sole traders and those that have given personal guarantees for loans. Winding up and liquidation apply to companies.
As a director of a business in trouble, it is up to you to decide whether your business should continue trading or cease trading. If you do not, you may end up having to pay for the company's losses from your own pocket while being investigated by the DTI.
If a director is aware that the company is going to become insolvent but continues to trade anyway, by law the director must cease trading and liquidate the company. If a director trades insolvent, they could be liable for wrongful trading and can only escape liability if they can prove they took steps to minimise the loss to creditors as soon as they were aware of the insolvency. Ultimately, as a director, you can only decide to trade on if it is likely that the business will avoid insolvency.
So how do you decide whether to trade on or not?
Assess the daily and weekly cash flow of the business and keep an eye on the finances. Record or note down minutes from meetings about financial issues. Review any decision to continue trading periodically. Get help if financial issues swamp the day to day trading of the business. If your business is in trouble, please get in touch and our advisors will help you plan your next steps. We can discuss and advise on all aspects including:
Business failure: Preventing Business failure.
Business failure: Arranging Business closure: Business failure
Business failure: How to reduce business risk
Business failure: Reasons for business failure
Business failure: Rescue company
Business failure: End company
Business failure: What are a directors responsibilities
Business failure: What happens to your assets and employees
Business failure: What about bank debts and other creditors
Business failure: What about Inland Revenue and VAT debts
Please call our hotline for urgent advice: 0800 800 6096