Downturns in business are often most acutely felt by business directors, sole traders and self-employed individuals. Their business debt is often compounded by a personal aspect, as they have often personally secured financing loans to alleviate business cash flow problems and allow their endeavor to be launched successfully. For example, if you gave a bank or other financial institutional personal guarantee to repay debt on your business then you will most definitely be held personally responsible for that debt in the event that it cannot be repaid.
Similarly, if you took debt in your own name but invested it in keeping your firm afloat, then you are also liable. Self employed sole traders can also find themselves in hot water, as in most instances they are personally responsible for the debt which they accrue for their business in the event that it fails.
There are several options available for people in this situation, including debt consolidation loans, individual voluntary arrangements, debt management plans and even bankruptcy arrangements. At Cooper Matthews we know that a healthy work/life balance is often nigh on impossible for sole traders and company directors, due chiefly to the considerable personal pressures which they find themselves under as they strive to protect their business by accruing personal debt, and we are ready to help.
A vicious cycle often occurs as most sole traders rely on their company for wages, so therefore when the company is in debt, so too is the individual, making it impossible to match repayments. Cooper Matthews can help these individuals to avoid situations where their personal health is adversely affected by the strain of debt problems. The first step is to contact us today.