Examples of Debt Problems
Mr. X
Mr. X owns a limited company that borrowed from the bank to invest in working capital and property. The loans were secured against property and by a personal guarantee from him.
The company has been wound up and the property sold but the sale failed to clear the loan and now the guarantee has been called by the bank. He now works full-time and has a mortgage on his family home.
He also bought a commercial property. There is 7 years left on this loan, it has been vacant for 12 months and he is unable to make loan repayments. He has 5 years personal tax unpaid.
The bank has demanded repayment and foreclosure and possible bankruptcy are concerns.
Mrs. Y
Mrs. Y set up as a newsagent many years ago as a sole trader. During the tiger times she assembled a property portfolio here and in Spain. The borrowings were repaid by rental income and partly from her news agency income.
Her business has decreased and she has been unable to pay creditors and the Revenue. Some of the properties are not let and she is unable to repay some of the loans. Foreclosure on the properties and on her home is her concern.
Mr. & Mrs. Z
Mr. and Mrs. Z invested in a portfolio of residential properties financed by a mix of repayment and interest-only mortgages. Some properties are currently let but the rental income does not cover the loan repayments. They bought an apartment in Spain secured against their residence. Rental income here has also dropped.
They are both salaried and their income covers home mortgage repayments. Foreclose on the properties and their home is a major concern to them.
