Debt Solutions for Residents of Nottingham

Nottingham is one of the three main cities in the East Midlands alongside Leicester and Derby. The advice from Help With Debt advisors is free to anyone within Nottingham. If you have a debt issue that is worrying you, call a debt helpline today and take the first steps to becoming debt free.
Due to the credit crunch the usual methods of obtaining credit have ceased to be available and unemployment is on the rise nationally. The amount of debt that the average person in Nottingham has who is contacting us is in the region of £30,000. Via our solutions we can help clear that debt.
Help With Debt advisors expect tens of thousands of individuals will need assistance with debt in Nottingham over the next year as unemployment bites and credit supplies are squeezed still further.
Help With Debt advisors offer a full range of debt products and services including consultancy, advice and practical help whatever your situation. The debt advice services are free and prides itself on always providing best advice for clients seeking debt advice
• IVA – The IVA is well used alternative to bankruptcy which was brought in in 1986. The IVA allows a person to propose a settlement to those he owes money to. It is based upon what he can afford not what he is obliged to pay. The IVA once accepted binds all parties irrespective of whether they voted in favour of it or not and prevents any further action such as bankruptcy.. In most cases an IVA will last for 5 years. The IVA has had a bad press over recent years as too many companies sold them for profit and not because they were best advice. We only recommend and IVA where it suits you to have one. Debt Management – A good Debt Management Plan will again allow someone to repay their debt at a rate they can afford for either a short time or for longer, as the situation determines. If your debt problem is temporary and your situation is likely to improve then a debt management plan could be the best solution. It should be noted that while the debt management company will attempt to get the creditor to cease interest and charges, these may continue thereby increasing the debt level over a period of time. A Debt Management company will tell you that they can reduce your debt payments and they will deal with your creditors for you. Most debt management companies will charge you anything from 15% to 20% of the amount you pay to your creditors as a fee. This is pretty standard for the industry.
• Bankruptcy - Bankruptcy is an option for someone who is insolvent and maybe who has a lot of debt but no assets. The Bankruptcy proceeding has two aims; To free the individual from the pressures of creditors (people they owe money to) to enable him or her to make a fresh start. Bankruptcy only lasts for a year and you will be debt free the moment the order is made. If you have disposable income, you may need to make some payments to the Official Receiver for a maximum of 36 months. These are called income payment agreements. A Debt Help Advisor can advise on how best to minimise these and also help you fill out the large and complicated forms that are required.

I've been away, but it's good to be back.

It seems ages since I updated my blog with any relevant info. I had a bit of a week working with the other half, but now I'm back. Check out the latest peices of information.

Bankruptcy advice for those who need help with debt in the UK

There are a number of questions that people ask when seeking advice on going bankrupt in England and Wales. For people seeking help with debt, going bankrupt is a big step and here you will find the most the advice most commonly given.
How Long Will I Be Bankrupt?
The usual length of a bankruptcy in England and Wales is just a year. The vast majority of people will be automatically be discharged after one year. Those who have been culpable in their bankruptcy, for instance through gambling, can expect to see their discharge suspended for between three and fifteen years.
Can I Keep My Car?
The Official Receiver will allow you to keep a motor vehicle if it is required for work, with a value of up to £2,000. The vast majority of those going bankrupt will have a car valued at less than this. Others may have a car on finance. The Official Receiver will often not interfere in a situation where the car is on finance and the finance company is happy for payments to be kept up. If a vehicle is owned which is valued at more than £2,000 the OR will take a view as to whether he can realise its value and of so will expect it to be delivered up to him and in return he will provide £2,000 in cash.
Can I Keep My House?
This is usually the main question that people ask. For some of course, the chance to allow the house to be re-possessed and any negative equity written off in the bankruptcy is a good option. In times of falling house prices such as we are experiencing at present, negative equity can present itself very quickly. If bankruptcy has been brought on by unemployment, it can be impossible to keep up repayments on the mortgage in any event.
The share of the house belonging to the bankrupt will vest in the OR on the making of the bankruptcy order. If there is no equity in the property, the OR will be happy to transfer it back to the bankrupt or another named person for £1 plus his costs. If there is a little equity, the house can be transferred back for the payment of an agreed figure.
It should be noted that whilst the bankruptcy will probably end after one year, the OR will have up to three years to deal with the property so it is best to get any issues with the property dealt with immediately.
Will I have to Pay Income to the OR
If you have disposable income this will need to be paid to the OR for a period of three years. If you engage an expert he will be able to show you how to best deal with your income and expenditure so as to produce the best disposable income situation.

If in doubt about how you may be affected, make sure that you take professional debt advice.

Car Sales in the Recession

A car is the second largest purchase that many families make. Most people cannot afford to make a payment for a new or second hand car out of cash and credit will be required. So what do you do then if your line of credit has dried up.
This is a problem being faced by very many car dealers at the moment. Industry figures reveal that new car sales in the UK have fallen by 15.7% in June this year compared to June last. In May fall was 25% year on year.
In the month of June some 176,000 units were sold across the UK. Many of these will have been sold to industry, with the private buyer sector really struggling to purchase due to a lack of credit around for them to utilise.
The Government scrappage scheme which came into effect on 18th May has had some effect with nearly 30,000 vehicles over 10 years old being cashed info £2,000 against the price of a new car. At this rate the scheme which was due to last a year will have exhausted its funds by October. The Government has said it will not be extended.
The problem may then re-occur that the market starts to contract yet again.
I am hearing problems from second hand car dealerships that they simply can’t move older cars. If you had a chance to purchase a second hand car for £10,000, or a new car for the same amount, with a five year warranty, what would you do?
This means that there are a number of dealers in the market who have stock that they have tied up, but which they can’t liquidate.
These businesses have rents to pay on the units that they keep. They have wages to pay, and possibly finance charges for borrowings they have which they may have used to purchase stock.
If you run a business such as this, you may be needing to take stock of your current situation. If you are struggling it may be possible to take steps to, extricate yourself from debt, and re-start in a debt free company.
A professional advisor, will be able to offer advice on something called a pre-pack administration, or liquidation. This will enable the debt to be left behind and the stock and lease and employees to be transferred to a new company.

My Company Is Bust

This is a phrase that we hear everyday. It is uttered by businesses large and small. Every sector of the economy is now encountering problems as access to funding has dried up and the consumer spending boom ratchets back in. People who are afraid of their own debt levels, and employment prospects, decide to spend less on impulse purchases and instead consolidate their finances, by paying down debt or saving.
The effect of this is that sales on the high street suffer. This exacerbates the problem, by meaning that these companies suffer a down turn in profits which results in them having to shed jobs to maintain profitability.
Everyday in the news another High Street chain closes or files for administration. Each one of these takes its supplies from British companies who either manufacture themselves or import from abroad.
From textiles to estate agencies, from mobility scooters to dyers, everybody is having to tighten their belts.
For many there is nothing left to tighten. For others the time they have to react is just too short.
However for everybody there may be a solution. As with all things insolvent, timely intervention is the key. The earlier a solution is explored the better chance it has of being successful.
There are a range of solutions which include non insolvency turnaround, through dividend returning CVA’s and Administrations to pre-pack sale administrations and liquidation to the straight forward liquidated closure.
The fact that the limited company shell may have to close does not mean that a business dies. If you have a company that is bust, you need to take professional advice and take steps to minimise losses to your creditors. Failure to do so may cause problems for you in due course if you cause additional loses. This may result on personal liability for the directors as a result of wrongful trading.

Business Club

I told you it was a busy week. On Monday, I got myself down to Leicester Tigers Rugby club for a meeting of the Leicester Business Club a group of people with businesses to mpromote and ideas to share and learn.
The evening was about websites, both design and SEO and hardware. I was particularly interested in this as I am trying to get my site, which is hosted and was created on a platform, ranked better in google. Obviously I blog, you know that as your reading it, but I also create articles for the web, but I need to know more.
Anyway the presentations were good, but the opportunity to meet and sell was great as well.
I'll be joining as I think that it will be a good source of leads and revenue streams in the medium term.

Utility Warehouse

What a busy week so far and it's only Wednesday. Last night a pal of mine took me to a very inspiring presentation from the folks at Utility Warehouse. They are an Aim listed company which essentiallly buys utilities auch as gas and electricity, phone and broadband and them sell it on to it's members. The brilliant thing is that the sell on price is less than the price of buying off of the utility companies themselves and they guarantee this.
Not many people have heard of them as thye do no marketing, and instead use multi level sales which rewards individuals who sign up other members.
The key point for me was that commissions were earned for life so someone you sign up esarns a commission albeit a small amount for the life of their membership. The key then is to get lots of members to join and also get some of those members to also be agents. This is what I did.
A pal of mine is an agent and he asked me if I wanted to be one, and so I paid my fee and now I am.
The great news for someone taking teh services is that over the course of the year savings of £800 can be made and it costs nothing to join as a member.
What would you do with £800? Why would you not take up this offer.
Anyway of you are interested please drop me an email, you could be a click away from saving £800.

Alliance and Leicester PPI mis-selling

I met with a chap yesterday who came to me with a debt problem after a little chat I was about to send him on his way, but we drifted on to what he did for a living. He said he worked for Alliance and Leicester as a contractor in the PPI department. he said he spent his days agreeing to pay back PPI commission on loans that people had taken out where the PPI was a pressurised sale. In two years between January 2005 and the end of 2007 some 210,000 loans were agreed with PPI on them , where the sales staff were encouraged to persuade anybody who questioned the inclusion of PPI to take it.
The cheques being sent out ranged from anywhere between £60 and £3,000 depending on the amount of the loan and the time over which it was being paid.
This struck me as quite astounding, and after a little reading I found that Allinace and Leicester has been fined £7,000,000 for this mis-selling. As well as them fines were also heaped on Liverpool Victoria in the amount of £840,000 and £1 million for The HFC.

I'm going to try to find out who else has been fined and post the information up here so those who have suffered understand they can claim.

Credit Card Companies Falling Down on Data Protection Requirements

One law for one and one law for another. That's how it seems to me today. I try to help people understand whether or not they have a credit card agreement which complies with the strict requirements of the Consumer Credit Act. To so this I do a Subject Access Request, under the Data Protection Act 1998. It is s simple request and the obligations likewise are simple. Make available what you have that relates to me.
So now in relation to SAR's for Credit Cards I am getting back a file of charges that have been levied. If I am lucky I get a pile of statements three inches think. What I seek and what I don't get is a copy of the original agreement signed (presumably) by both parties). Now why might that be? Perhaps it's because the agreement that exists (if indeed it exists) is not enforceable.ie it doesn't contain precribed trems as required by the CCA 1974.
If it doesn't have those terms it is not enforceable. Simple. So by not supplying a copy of this document by way of a subject access request, they give the applicant no chance to assess if he has to worry about the card being enforceable.
To counter this I now send each case that doesn't have an agreement sent within 40 days, to my solicitor who makes and application to court for an order that the agreement be supplied.
This causes the card company a problem as they have to comply or they can't enforce the agreement, but if they do try to comply they will be shown as not having an enforceable agreement.
If you have a problem getting your agreement. Call me and I'll set my lawyers on the case.

Why an Administration might be right for your business

The company administration is now an extremely popular method for a company to deal with its financial problems. In the last quarter of 2008, some 2000 companies took advice and opted for the administration solution.

When an administration is proposed, it is generally with the intention of saving the whole or part of the company as a going concern, proposing a CVA or achieving a better realisation than might be achieved if the company does not enter into an administration.

If the company has a trading business that would be affected by any cessation in trade, then an admin must be considered. Any closure of stores, or for instance a public house, may lead to loss of confidence, and a resulting loss of trade.

If the company is a people business and relies on its staff, then it will want to protect those staff and the relationships they have. A liquidation may cause a people business to lose staff, and contracts before a rescue package can be put in place.

It would also work for a business that deals with perishable items and this can be combined with a centre-bind which would help the administrator sell these items before they spoiled.

The proposed administrator will prepare his proposal, and present it to court. If the court thinks that there is merit in the proposal, time will be given to see those plans through to fruition. The administrator will then have three months to complete matters before the order expires. He may apply for more time if required, but he must show a reasonable chance of success.

In the vast majority of cases a proposed administrator will have an exit route in mind and move very quickly to put that in place, before those deals expire.

If you have a business that is in trouble, but you think that it can be saved. You need to call an insolvency practitioner now, so they have the best chance of getting maximum value from what is left.

Why a small business man should close an insolvent business

Company Winding Up A company winding up is the mechanism by which an insolvent business legally ceases to trade with the help and assistance of an insolvency practitioner. It is often called a creditors voluntary liquidation. As a company director you need to be constantly aware of the financial position of your business, and take steps, if you conclude that the company is insolvent, not to increase the debt levels. If you conclude after a review that the company can be turned around, then you are allowed to trade it, but such decisions need to be minuted at meetings and evidence of the steps taken documented. A failure to do this can later result in an action against a director for wrongful trading. If you conclude that whatever steps you take the business will still ultimately fail and may increase in losses, then as a director you are obliged to take steps to close it down. For many the route taken will be the Creditors Voluntary Liquidation. If the company has an underlying good business, but will not trade through its problems then the business should be closed, but it could continue in another guise, with a pre-pack sale to a phoenix company. The liquidation is begun by directors reporting to the shareholders, that the company should cease to trade. They will then generally approach an insolvency practitioner to help prepare a statement of affairs and call a meeting of creditors, who will ultimately vote to liquidate the company. If you are unsure of the procedure take advice from some one such as an insolvency practitioner who will be ideally placed to help you take the first steps, which will include preparing the necessary paperwork, and also getting the finance in place for a pre-pack if so required. It is generally thought advisable for directors to take the bull by the horns and begin the winding up process themselves as it is a clear sign of corporate responsibility. This will go to your favour on the report that a Liquidator must prepare for the Secretary of State. The winding up process is not difficult but it is understand that it can be emotional. It is common place to have feelings of guilt about closing down a business. If you have dealt with suppliers for many years you will feel bad about not paying them. I suspect that for too long many of you have even paid suppliers out of your own pockets. That is not the point of a limited company enterprise, It exists to protect personal liability. If you continue to trade whilst insolvent, you risk wrongful trading as I outlined above. It is better for all to take steps to close down the insolvent business and if appropriate pre-pack the sale of the going concern to a clean company, that way jobs are saved, no further losses are incurred and your suppliers can trade afresh with a solvent entity. Remember you do not have to face this alone, but by delaying making the call, could make matters worse for your creditors, and ultimately that may reflect upon you.

Factoring- It could be for you.

As I write this the most almighty storm is raging overhead. The internet is intermittant and the sky is very dark. It could be an analogy for your business. However, if you have a ledger of invoices then you may be able to release the funds help up in those for instant cash flow. Read the following and contact me if you need any further assistance in this area, or you would like to talk to someone about how factoring may help you.

Factoring

Factoring: Is it for your business?

Factoring can be a great way for some companies to raise finance and shift borrowing off of their balance sheet. It is an alternative but similar to invoice discounting. It has its pro’s and con’s. If you are closing one business and maybe looking to pre-pack the solution into a liquidation or an administration, then we will be able to finance your wishes.

Advantages:
It is among the quickest way to get advance cash. - Overhead charges get automatically reduced with the cut in invoice processing activities.

Getting cash with factoring helps in eliminating the risks of bad debts as these can be insured against.

The business owner becomes free of various other obligations connected with the invoice processing like depositing cheques and entering payments.

The task of debt collection is undertaken by the factoring company and so it helps the company by releasing time for it to concentrate on value added activities.

It gives an opportunity to offer credit terms to customers without hindering cash flow.

Factoring brings no extra liability in balance sheet and hence does not result in creating hassles while obtaining other types of financing.

Early payment discount is another benefit of factoring. Payment of bills before the scheduled time brings in many benefits in the form of discounts.

It is an easy way to have an access to unlimited capital as with an increase in sale more money becomes immediately available to business owners.

Some other benefits include building credit, quick and easy process, concentration on marketing and securing new accounts and no long-term obligation.

Disadvantages:
The biggest disadvantage is it makes the process complicated as it acts as an extra link in the process. However we have good links with a number of companies and can advise at the outset whether or not we can your deal away.

It is useful for companies with disputes and queries to hold up payment which may result in claw backs.

The ambit for borrowing gets narrowed, as account receivables will not be available for security. Many banks often require this to be available for them to add onto other borrowing.

Factors may want to get your customers examined and may have influence over your ways of doing business. This is usually the case where there are few customers of high value.

In case the customers do not repay the money, you have to pay their amount entwined in factoring. It can lead to the inability to draw down full amounts each month.

It is costlier than other sources of finance though it is competitively priced.

Few customers don’t want to deal with a third party and are not interested in factoring.

Business Liquidation - a fresh start

I get a lot of calls from people asking what the personal affects of closing down their company will be. Everybodies situation is different and a bit of time spent with someone can help tremendously. If you liek what you read on the blog and you want your own persnal chat, feel free to contact me.

You are here because you know that your business is in trouble and you want to know what your options are. Bottom line is you want to know what you can do to make this thing work and if it can’t what it will cost you.
Let’s start with you first. If you have personal guarantees and the company is going to fail, unless you can roll these across into a new co, then these will fall on you to discharge. That can be managed, as you can either negotiate full and final settlements, you can debt manage these or ultimately pop them into an IVA.
In most cases, if you are talking to a professional early enough, they can convince any bank that the solution lies in taking this business forward in another guise, not with the same limited company shell but in a new fresh business created out of the old with no debt, fresh ideas, a new impetus and without any of the baggage that encumbered the last company.
A liquidation may be seen as a death of one business, which is true, but it can also a birth of a new business, with a clean start, with no anchor to hold it back. It will have a chance to thrive, and grow. Professionals will help it source its finance, they will help it cut it’s cost base and with their guidance it will enter the most challenging corporate environment that many of our generation will ever have known.
This is not a moment for the timid, but then only the brave ever put their head above the parapet in any event. Do you still have that drive that you had when you first went into business, and can you still rise to the challenge that faces us all out there? Mostly can you work for someone else? No, I thought not. So if you have a business that is failing and yet you still have the zeal that first made you want to set up in business on your own in the first place, consider closing the old company and phoenixing with a new company. You can have the same ideas, same workforce, but without the debt that crippled the last business. If you have no-one who you can turn to follow the links at the base of this article..

http://www.helpwithdebtuk.com

An Introduction to Bankruptcy

An Introduction to bankruptcy

Bankruptcy is often seen as the last resort in solving any debt issues, but I do not subscribe to this. On this site you will find the pros and cons of bankruptcy, and the myths of an IVA. Please read these and it will become apparent that bankruptcy has been and remains a far more utilised debt solution than the IVA.

The consequences of becoming bankrupt may mean you lose your house, it could prevent you from pursuing certain careers and, for example, prevent you from becoming a company director for a period of time. Having said that, the severity and stigma of bankruptcy has lessened over time and it is now far more acceptable than it used to be. This year some 80,000 individuals will become bankrupt.

Bankruptcy can be a daunting experience. Taking customers through the bankruptcy process, even attending court with you if necessary, is a particular area of expertise within Help With Debt UK. We have handled the bankruptcy process for a huge number of customers and can make it a quick and painless process, providing it is the right solution for you.

How do I know if I need to pursue the bankruptcy option?
The easy way to find out is to call one of our expert debt advisors. They will, very quickly, get to understand your current financial position and advise the best way to solve your situation. The conversation is completely confidential, free of charge and without obligation. We are just here to help.

What is bankruptcy?
Bankruptcy means that all your debts (subject to a very few minor exceptions) are written off on the instant you are made bankrupt. If you have disposable income you may be required to pay this to the Official Receiver for a maximum of three years. However as part of what we do we configure your disposable income to reduce as much as possible the potential of having to make income payments. You will generally be discharged from bankruptcy in a year or less. If you have equity in your property or valuable assets you may have to release these to the Official Receiver.

How to Defeat a Statutory Demand

How to deal with a Statutory Demand.
We get lots of calls to the office from people who have been served with statutory demands via the post from debt collection agencies, such as 1st Credit, Connaught, Lowells, Robinson Way and Cap Quest.
Many are confused as to what they should do as the the Demand will mention that if the document is not dealt with within 18 days then after 21 days a petition can be presented. We can suggest that from experience this will not happen. The demand is being used as a debt collection tactic, and the Debt Collection Agency really has no intention of spending it's money on the considerable costs of petitioning for your bankruptcy.
We would advocate using the credit card write off service as a cost effective way or a) dealing with the demand and b) dealing with the debt. It will have the effect of putting the debt collection agency to proof that they have the right to collect the debt. In our experience they will be unable to comply with our requests for evidence of their right to enforce payment which will then lead to our ability to get this debt written off.
So if you have been served with a statutory demand from a debt collection company, such as 1st Credit, Connaught or Lowell, please contact us and we can use our skill and experience to bring an end to your worries.

PPI reclaim nets £2800 from Halifax

We are delighted to announce our latest victory which is a £2800 cheque for a client from Halifax in respect of PPI on a credit card which was mis-sold. There are many companies out there who have mis-sold PPI and getting compensation off of them is necessary to make them change their selling methods and realise that they can't simply tie a loan up with a lucrative insurance, just to earn commission.
If you have a PPI probelm you maybe need to look at the website, helpwithdebtuk. www.helpwithdebtuk.com.

Is Factoring the boost your business needs

Factoring: Is it for your business? I often get enquiries from businesses who are struggling for cash flow, but who have a good ledger of sales that are not delivering immediate cash. As cash can help a business expand it makes sense to release this if possible. Factoring can do just that, as can invoice discounting. These are known as cash flow solutions.

Factoring can be a great way for some companies to raise finance and shift borrowing off of their balance sheet. It is an alternative but similar to invoice discounting. It has its pro’s and con’s. If you are closing one business and maybe looking to pre-pack the solution into a liquidation or an administration, then we will be able to finance your wishes.

Advantages:
It is among the quickest way to get advance cash. - Overhead charges get automatically reduced with the cut in invoice processing activities.

Getting cash with factoring helps in eliminating the risks of bad debts as these can be insured against.

The business owner becomes free of various other obligations connected with the invoice processing like depositing cheques and entering payments.

The task of debt collection is undertaken by the factoring company and so it helps the company by releasing time for it to concentrate on value added activities.

It gives an opportunity to offer credit terms to customers without hindering cash flow.

Factoring brings no extra liability in balance sheet and hence does not result in creating hassles while obtaining other types of financing.

Early payment discount is another benefit of factoring. Payment of bills before the scheduled time brings in many benefits in the form of discounts.

It is an easy way to have an access to unlimited capital as with an increase in sale more money becomes immediately available to business owners.

Some other benefits include building credit, quick and easy process, concentration on marketing and securing new accounts and no long-term obligation.

Disadvantages:
The biggest disadvantage is it makes the process complicated as it acts as an extra link in the process. However we have good links with a number of companies and can advise at the outset whether or not we can your deal away.

It is useful for companies with disputes and queries to hold up payment which may result in claw backs.

The ambit for borrowing gets narrowed, as account receivables will not be available for security. Many banks often require this to be available for them to add onto other borrowing.

Factors may want to get your customers examined and may have influence over your ways of doing business. This is usually the case where there are few customers of high value.

In case the customers do not repay the money, you have to pay their amount entwined in factoring. It can lead to the inability to draw down full amounts each month.

It is costlier than other sources of finance though it is competitively priced.

Few customers don’t want to deal with a third party and are not interested in factoring.

Partnership Administration

Partnership Administration

A Partnership Administration Order is similar in some ways to Administration for a limited company. It is a rescue vehicle often used by larger partnerships such as accountants, solicitors and architects. Many of these are now trading as limited liability companies, but many partnerships do still exist. For those running out of cash it is certainly something to consider.
All of the partners must be solvent. Effectively the partnership administration is to protect the partnership whilst a restructuring, refinancing or sale is considered.
The process is begun by preparing a statement of affairs which will show the true position of the partnership. The partners can then apply to court, and we would assist in this process as it can be daunting. An administrator will be nominated and again we will assist with this as that person needs to be suitably licensed for this type of work. It is usual for an interim order to be granted to prevent creditors taking any action against the partnership whilst the court consider matters.

At the hearing the court considers the application and whether it should allow the court to grant powers to the administrator to run the partnership affairs. The court may then grant the order which gives full protection to the partnership – a full moratorium providing all conditions are met and the rules observed.
The admin order is granted only when the one of three options is being pursued.
1. The proposal of a partnership voluntary arrangement
2. Survival of all or part of the business as a going concern
3. A more orderly realisation of assets than may happen in winding up (In other words avoidance of the meltdown of assets inevitable in liquidation.
The IP will over the next three months put his plans into operation for achieving one or more of the above three options
The benefits of Administration are
1. Protection of the partnership business from creditors

2. The IP has breathing space in which to develop and put in place the rescue plan.
3. It stops on creditor from exerting more influence on matters than others.
4. It generally leads to a better return for all creditors.
5. In the event that one or more partners is also suffering financially, it prevents an attack on partnership assets by a rapacious creditor.
The risks or downsides are:
1. It is necessarily costly, but maybe not as costly as the whole partnership failing.

2. The business world will know of the administration as all communications will record that fact.
3. There must be sufficient cash available for the partnership to trade through the administration process, however a good plan will factor this into the equation.

4. The individual partners may also depending on their personal financial situation, need to do simultaneous IVA’s

If you are in a Partnership that is struggling at present you should take urgent initial advice to see what can be done to ease your way through the financial difficulties you are in.

PPI - were you mis-sold it?

Have you been mis-sold Payment Protection Insurance? PPI (Payment Protection Insurance) policies were designed to cover the cost of loan repayments in the event that you were off sick or became unemployed. They were mainly taken out with loans, mortgages and credit cards.

The major problem with PPI is that most people who were sold the policy didn't really need the cover and in many cases the policies were sold to people who could never qualify for a claim anyway,eg retired, self-employed, unemployed etc. Also bad backs and stress " the main two reasons for being off work " are usually always excluded from the contract.

Some of the major banks have already been fined for mis-selling.
It is estimated that over £10 Billion of policies have been sold and as many as 30
million policy holders may have a claim for compensation.

Statistics indicate that as many as 8 out of 10 of these policies may have been sold incorrectly.

Some instances of mis-selling include
• You were told you had to take out PPI in order to get the loan or product.
• You were pressured into buying PPI.
• You were not informed you could buy PPI from an independent Provider 80% cheaper.
• You were NOT told about any exclusion’s.
• You were not asked whether you already had sufficient Insurance cover.

What can Payment Protection Refunds do for you?
Payment Protection refunds will establish whether or not you have a valid claim for compensation.

If you feel you were a victim of mis-selling then I can help you recover your premiums and interest .

The involvement of our solicitors on claims where the premium for the Insurance ( PPI ) was added to the loan will mean that they will be seeking settlement on the basis of , The Lump sum involved, Compound Interest and the refund of any secret or hidden commissions.

Don't delay of you have suffered from the PPI mis-selling scandal, contact me now.

The Pre-Pack Liquidation

While I've got a bit of time on my hands I thought I'd post up another few pages of advice that I've written about the company rescue regime in the UK. At these times many companies are struggling, often because their own customers are having a rough time. For many, it is the Limited company shell which is in trouble, as it may carry debt and not the actual underlying business itself. For these businesses the answer may be a prepack liquidation, whereby the business can be saved along with jobs but the debt can be hived off in the insolvent Limited company shell.

Contact me for more information

Prepack liquidation

A pre-pack liquidation is a favoured way for a company that is in financial difficulties, to properly and correctly close the loss making entity, so as to protect the directors from accusations of wrongful trading, but to enable the business and the employees to be transferred to a debt free company.
It is the view of government that it is better to preserve the business and let the legal entity fail, than let a potentially profitable business founder.
We have the expertise to help you set up a new company and with the blessing of the proposed liquidator of the insolvent company, conduct a sale for value of the on-going trading element of the insolvent business to new co and then close the insolvent company at a creditors meeting.
There has been comment recently that there are too many pre-packs happening now. However, with increasing failures of companies, this is to be expected. A lot of businesses that are experiencing financial difficulties, are on an underlying basis, sound trading companies. If you take away their debt, they will flourish and continue to employ staff and generate sales. It is vitally important in today’s economic climate, to keep people with skills in employment, and to get companies trading with each other.
We can help pre-pack such businesses so that they can continue to build on the wealth of the country.
If you would like to pre-pack your insolvent company and re-trade in a debt free new co, please call us for an informal conversation, on how we can assist, and the likely timescales.

The Company Voluntary Liquidation

As I post I will post up a series of helpful passages on various insolvency procedures with which I an familiar. As an insolvency solicitor I can offer help and advice on any personal or corporate problem you have. Feel free to post any question you feel you may need help with.

www.helpwithdebtuk.com

Company Voluntary Arrangement

The company voluntary arrangementis ofern referrred to as a CVA. It an alternative to the creditors’ voluntary liquidation. Both corporate debt solutions are made good use of, and have been on the statute book since the advent of the Insolvency Act 1986.

The CVA is available for those who have an insolvent business which can’t pay it’s debts as and when they fall due, but which, if giving some breathing space would be able to make regular monthly payments into a fund which could be distributed to creditors annually. In practice a company must be able to contribute at least £1,000 a month. For a business with a significant turnover, this should be easily manageable. It is often combined with sever cost cutting, which enables the business to re-structure itself and emerge leaner. On occasions it follows an administration, which may have first been used to protect the assets of the company from plunder from creditors taking enforcement action.

The creditors voluntary arrangement, can be used for a partnership, and will be known as a PVA, or partnership voluntary arrangement, and will be useful for accountants, solicitors and architects.

Most arrangements of this sort stay in place for 60 months and may also include lump sum payments at various stages, for instance if it is envisaged to sell property.

It is not to be undertaken lightly as to fail it would mean that all unpaid debts would still remain due. It is worth bearing in mind that business can change over time, and a commitment that is entered into this month, may not hold up 12 months later.

If you need advice please call Steve on 0116 2171406 or follow the link

Welcome

This is about the third blog I've started as I seem to keep losing my passwords. If you have found me, at least someone has. If I have written anything that has interested you, even better.
I'm a novice at this, but hopefully I'll get better as I go along.

Welcome

This is about the third blog I've started as I seem to keep losing my passwords. If you have found me, at least someone has. If I have written anything that has interested you, even better.
I'm a novice at this, but hopefully I'll get better as I go along.


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