Cant keep up repayments....

my_pie

hello there.
im hoping someone here could give me some advice on an issue that keeps me awake.

i am one of 4 directors of a small company that isnt able to maintain payments on a vechicle that was purchased in january 08. there is still some 22,000 left to pay off with the bank.

there is approx 19,000 paid off the vechicle already.

this van is the only real asset the business owns.

the company is the business side of a musical group

its becoming clearer to me at least that it is impossible to keep payments up as the company isnt making a cent and everyone is worried about maintaining healthy credit ratings with the bank.

what options exist for a small company where one of the director is the guarantor.

isnt there some rights in place to project us that wont affect credit rating?

have we some comsumer rights that specify that once at least half of an item is paid for it can be returned?

if more information is required please ask.

thank you

Abelloid

I don't think the 'half rule' applies to commercial vehicles.

http://itsyourmoney.ie/index.jsp?pID=665&nID=771

91011

The van is probably a liability in the company's books as the finance on it is probably in excess of the current value.

You really only have 2 options.

1. Agree a longer time frame to pay the finance thus reducing the payments

2. selling the van and agreeing a payment schedule for any balance left owing to the finance company.

There's nothing to protect either the company or the guarantor from negative credit rating if the finance company is not paid. However it will not affect the guarantor until the finance company calls in the guarantee. - And this is usually only done after all other avenues are exhausted.

The sooner you talk to the finance company the better as its easier to get an arrangement when the account is not too far gone bad.

dudara

Firstly, you are a company, so consumer rights don't apply here.

Better moved to the Banking & Insurance & Pensions forum

dudara