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Can my house be repossesed |
Submitted on: 24th Jan 2010 by Non-Member | Total Answers: 1
We are a ltd company with 2 vehicles on finance. Work has gone down and we can now only run one vehicle due to the work volume. The problem we have is,
if we give the vehicle back to the finance company or sell it our self , we will owe the finance company the difference, which is about £35000. We have very little money in the buissines and no assets at all. The bank will not give us a loan, so can the finance company reposses our houses?
Although we did sign the finance aggrement, neither of us had used our houses as guarantee.
Re: Can my house be repossesed
If the company is limited - your liability for the debt is usually limited to personal guarantees you have given.
Really you need business advice - and you need to make a decision as to whether the business will be viable. Trading a company while it is insolvent can have serious consequences. Perhaps you should get some advice from Business Debtline www.bdl.org.uk.
It it turns out you owe debts personally give us a call at Debt Advice Foundation
http://www.debtadvicefoundation.org/talk-about-debt
Creditors do have the option to obtain a judgment against you and can then apply for a charging order against your property. They may also consider bankruptcy .
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