www.company-debt.co.uk

[shaunp]

My business folded and the bank is asking me to arrange a personal loan to recover my business debt.

Is there any other alternative way to do this? I owe £7000.

thank you

[Derek Cooper]

Was your business a sole trading company or limited?
If you were a sole trade then you will be personally liable for the debt. If the company was limited than you are not liable for the debt unless you gave a personal guarantee.

Depending on the situation, there are various options you can consider.

Please reply with a little more info

[shaunp]

Derek
Thank you for your reply. I was a sole trader.

Yesterday I went to speak to the bank who tried to sell me a loan for £7000 over 7 years at 20%apr.
I discussed with them about going bankrupt but they said they could not advise me about that!

Do you have any other alternatives or suggestions. I look forward to hearing from you.

[Derek Cooper]

I would certainly not advise you to take a loan at 20% APR. That seems a laughable suggestion to me!

The solution you should use will really depend on how much debt you have, how much (if anything) you can afford to pay back and whether you are a home owner.

If you have little or no income, bankruptcy might well be an option.
However, if your other assets are less than £1000, you might be better considering a debt relief order. If you can give me a little more information I can advise further.

[James00]

Well why bank asking for personal loan .I will not suggest you to take personal loan .Try to pay debt of your business by improving the condition of your business.