April 2013 eBulletin
GOING THE EXTRA MILE!
I recently had a call from Sue, who was director of a company with financial difficulties. I was aware that Sue had seen two insolvency practitioners before contacting G&K.
I met Sue who introduced me to Eileen, the bookkeeper, to help with any financial questions. Sue explained the background to the problems and with Eileen's help went through the assets and liabilities of the company. I was careful to quiz the director whether personal guarantees had been provided. There were quite a few.
The company was clearly insolvent, had no future and I recommended should enter Creditors Voluntary Liquidation as soon as possible.
Then I asked Sue if we could discuss her personal financial position. Sue looked surprised and said “but none of the other IP's went into this?" "but isn't this what you're most worried about?" I responded.
Sue agreed and she went on to tell me about the negative equity she had in her house, credit card and personal unsecured loans, in addition to those debts that had been personally guaranteed through the company. The total of Sue's unsecured debt came to around £90,000. Sue had very little income, no prospects of this changing and she and her partner were struggling to keep up the mortgage payments together with all the unsecured loan payments. My recommendation was that Sue went bankrupt, lost all the unsecured debt and concentrated on keeping the mortgage payments up to date.
Sue was mighty relieved; she could now see a way through her debt problems. Needless to say, we were appointed to deal with the liquidation of the company and we helped her, without charge, through the bankruptcy process.
If you hear of anyone with financial difficulties please ask them to call us. Our initial meeting is always free and I'm sure we can help!
For more information about Creditors Voluntary Liquidation please click here.