M Transport SERVICES:The partnership lost a major contract and utilized reserves to pay wages in the hope of finding new business. Six months later they had to pay off staff, closed the doors and had accrued business debts of £156,000. Personal debts owed by the partners stood at £95,000. A creditor had issued a 21 day Statutory Demand Bankruptcy notice on the Partnership for £29,000. Both partners had found employment elsewhere.

Solution: Immediately the 21 day notice expired a petition was raised to sequestrate the partnership and an Insolvency Practitioner was appointed. To alleviate pressure from the personal creditors both clients signed Trust Deeds. The clients paid £560.00 a month between them for three years and the remaining personal debt was wiped out. An agreement was reached with the Trustee on the family homes whereby family members redeemed the Trustees interest and the houses were not sold.

AC Contracts: Asked about Bankruptcy due to cash flow problems. Our initial meeting showed a substantial amount of unpaid accounts that could help resolve the situation. There was no effective credit control system in place.

Solution: A debt collection programme was instigated which produced an immediate and substantial result. Client then capital raised to pay off existing debts and instigated a proper credit control system.

R&G Builders Ltd: The Directors had signed personal guarantees for several suppliers who were threatening to close the company if they were not paid in full. Company debts stood at £150,000 and the Bank had suspended all facilities.

Solution: Creditors were invited to liquidate the Company and rely on their personal guarantees. Fearing they would lose all monies due the creditors agreed to postpone further action and accept a lump sum pay off. The Bank agreed to restore facilities due to the reduced debt levels of the company.

J M Engineering SERVICES: A sole trader with £120,000 of unsecured personal debts that he could not afford plus a substantial secured loan on his home. The underlying business was healthy but unable to support the level of personal debt owed . Premises and overheads were too costly and draining resources.

Solution: Property was re mortgaged to reduce the cost of secured borrowings and smaller, more affordable premises secured. Having ceased trading temporarily, the client signed a Trust Deed payable at £500 a month for three years to obtain relief from pressing creditors. An agreement was reached on the matrimonial home and vehicles.