My wife and I are mid 60’s and ran a successful business for over 30 years. About 8 weeks ago we decided enough was enough, we have ploughed most of our savings into the business over the last few years trying to stay afloat and could not afford to continue. We called in our Accountant and the receivers were brought in and we ceased trading. We have walked away with nothing. We own our semi detached bungalow outright and have not great pensions to now live off.

We have a personal guarantee with the bank for the business, we owe them 35,173.00 pounds, they have said that they want us to repay at 480.00 pounds per month, we just cannot afford this. They have suggested that we make them an offer of a lump sum settlement. The only way we can do this is by selling the house, but then we would be homeless.

What do you suggest would be a reasonable amount to offer, if we sell one of our cars and just have one, we may be able to raise in the region of 10,000 to 12,000. Do you think that they would accept this sort of amount from us ??

Any advise would be greatly appreciated

The bank cannot take anymore than you can afford to pay each month. Perhaps contact the Consumer Credit Counselling Service and they will advise you on your situation. However, if you need actual financial advice relating to equity release or mortgages, then please let me know. Try not to worry.