i am closing a small business, do i have to pay back my suppliers and bank overdraft without being penalised i

Question

i have being paying them all small amounts as im worried about future credit ie new mortgages with my partner and family commitments.

Answer 1

Unless your debt has been discharged by a bankruptcy, you still have to pay your debts. Make arrangements with your creditors to pay them back at a rate that you can afford. At this point, most of your suppliers will accept the money over time if they are assured they will eventually be paid.

Once your business debt is paid and you have a couple of years of employment history, you should be able to qualify for a mortgage.

Answer 2

Yes you do have to pay them back. I am assuming you are closing the business as you're losing money and are paying them only small amounts as this is all you can afford ? If this is the case then talk to them and explain your financial circumstances-they may agree to a smaller settlement figure or agree to a repayment schedule. As long as you stick to any agreement your credit rating shouldn't be affected.