Business Recovery & Turnaround Solutions

Restructuring Your Business

2010-03-25T08:21:00.000-07:00

Restructuring Your Business

Restructuring your business could be the best thing you ever did, completely changing the fortunes of your company and allowing it continue trading successfully for many years to come. It could also be the final death blow to your business which sees you lose control of your finances and cease to be as successful as you were previously. It could make or break your business, which is why it should be approached with extreme caution and done in a professional and efficient manner. If your business has been struggling, a restructuring of your staff and financial situation could be the way forward which allows you to revitalise your company. It is a popular choice when there are clear inefficiencies in the business and some of the world’s biggest businesses would not be around today if they hadn’t made drastic changes in the early days.
It is absolutely vital that you take an objective view of the operation of your business. If you are swayed by relationships or personal pride, restructuring your business will only serve to worsen your situation. However, if you are able to look at things from a purely financial point of view, and work out how best to allocate your resources, your business could thrive. Clearly, if you are considering business restructuring, things are not going to plan. For whatever reason, your business isn’t being as successful as you know it can be, so it’s time to take a harsh look at the way your business is run and the people that run it.

Take a look at the people you currently employ. Are all of them absolutely necessary? Are there people in conflicting positions? There are so many ways in which you could be allocating your workers in the wrong way. Make sure you are putting people with the relevant skills in the best possible position to suit those skills. It is also important that those people are able to use those skills in their job, which is why assistants should be used when needed to stay on top of the admin work. If all of your main employees are using their skills to the full, your business will almost certainly flourish.

If there are positions that no longer appear necessary, it is time to get rid of them and decide on the future of the person currently filling that position. If they can offer something to the company in a different role, then by all means hire them in that position, but do not be tempted to keep them just because they have been with the company for a number of years. This is where things can get extremely tricky, but remember that your business is not working in the way it should be, and you really don’t have any choice but to do the best for the long term future of the business.

Once you have allocated all your employees to the correct roles, try to make sure they are all focussed on set goals that can be substantiated. If it helps, write a thorough job description and tell them to stick to it as well as possible. If people are not all working hard towards the same targets, your business will not progress as it should.

Take a look at the finances of your company, and decide whether you need to restructure some of your loans or look to consolidate your debts. Professional financial advice can help hugely in this case, and could ensure that in the future your business can see great returns. If you have a serious debt problem, it’s time to start cutting back and making some decisions about the future of your business, because you could lose it if you aren’t extremely careful.

Restructuring your business is a massive job, but it can be separated into a number of tasks to avoid any mass confusion and keep your business running smoothly throughout the process. The future of your business could completely depend on your ability to change the way it is run for the better.

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Personal Insolvency

2010-03-24T08:33:00.000-07:00

Personal Insolvency

Once someone has declared insolvency or bankruptcy they have very few options available to them. Insolvency essentially means that someone has no way at all of paying back the money that they owe as debt, so obviously it is extremely serious if someone is forced to declare themselves insolvent. One could file for bankruptcy, which would leave them with restrictions on their future employment and the stigma attached to this legal process, not to mention the various issues with banks and creditors that will continue into the future. For these reasons, many people look to an Individual Voluntary Agreement as an alternative to declaring bankruptcy.

Declaring insolvency isn’t easy, it is a legal process that requires professional advice in order to be completed successfully. The chances are that large sums of money are involved, so these processes are taken very seriously by all concerned. For this reason, hiring an insolvency practitioner could be the way forward in order to handle the process more efficiently and with the least amount of stress. A true insolvency professional will have years of experience handling situations like yours, and will know exactly how to deal with your creditors. He or she will conduct a full review of your personal finance situation, assessing the value of any assets you may have and trying to look for solutions to your problems. If there really is no other option but to declare yourself insolvent, the practitioner will be able to make the process as painless as possible.

There are many ways that you could avoid insolvency, such as some form of debt consolidation or renegotiation, but they are not always suitable and for this reason insolvency is sometimes necessary. One of the great things about hiring a professional to look at your financial situation is that they can make objective decisions based on the numbers they have before them; they will not be swayed by emotion. This means that they will stop you from continuing down a bad path simply because you hope that your financial situation will soon ease. In this way, insolvency practitioners can save you a great deal of hassle, and give you the motivation you need to improve your situation in the future.

Once insolvency has been decided as the only available course of action, the practitioner will begin talking to your creditors. They will be presented with full details of your finances and the reasoning behind your insolvency. If you own any assets, these will be offered to the creditors and can be liquidated if they so wish in order to try and reclaim some of the money they have lost.

This process is sometimes extremely complicated and can turn nasty, especially given that your creditors will be strongly affected by your inability to pay back the debt you owe. Therefore, it is always helpful to have a professional handle the process, so that you do not have to deal with the huge stress which accompanies it. The professional insolvency practitioner will also know your legal rights and be able to protect you from any legal attacks that may come your way from your creditors.

Insolvency is one of the worst things that a person can go through financially, but it doesn’t have to be the end of the world. Many people bounce back from insolvency to lead excellent lives and become wealthy again, since insolvency can represent a fresh start in many situations. It is important to learn the lessons of your mistakes, and know exactly why you were put into such a difficult situation in the first place. It may not have been your fault, or it could have been reckless spending on your part; either way, your financial stability depends on extremely good control of your personal finances, and so professional advice can go a long way to ensuring that you don’t make the same mistakes again.

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Liquidation

2010-03-18T05:46:00.000-07:00

Liquidation

If you’ve been running your business at a loss for some time, it’s highly likely that you’ll be facing mounting debts and potentially seeing your business fail. This is not something people like to face up to but unless you act fast, these things will happen and you won’t have anything to hold on to in the future. If you seek professional help instead of watching your business fail slowly, you can save your business and revive your fortunes. One solution to extremely difficult financial problems in the business is liquidation.

Liquidation isn’t particularly hard to understand, it just means that the company is shut down, all assets are sold, and all trading is ceased. The type of liquidation that happens is highly dependent on whether the company is solvent or insolvent. If the company is completely unable to pay back its debts, then it is insolvent. Also, if the value of the assets is not enough to pay back the debts, the business is insolvent. If the company is able to pay back its debts in some way, it is said to be solvent.

With a solvent business, the liquidation process is called “Members Voluntary Liquidation” (MVL), basically meaning that the liquidation has not been forced to take action by their finances. MVL involves the directors of the company making a legal declaration that the business is solvent, and that the debt can be paid back within the next 12 months. The whole process of MVL should be relatively straightforward, with all creditors receiving full payment and the business simply ceasing to trade. Anything remaining in the company, such as assets or cash, is handed over to the shareholders or owner.

It may seem strange for a solvent business to suddenly stop doing business, but it is surprisingly common. MVL’s often take place because of personal reasons on behalf of the owner, or it could be that the business is felt to have fulfilled its potential and is no longer making any profits. By going through liquidation, a company can start afresh under a new name and begin trading again relatively quickly, so it can be useful.

The liquidation of an insolvent business is altogether more complicated. There are two possible liquidation procedures, one of which is a Creditors Voluntary Liquidation (CVL) and the other is called Compulsory Liquidation.

CVL is generally an option chosen by the shareholders or owner of the business; they will hire an Insolvency Practitioner who will inform the company’s creditors that the business has become insolvent. The creditors are then given the option to choose a liquidator who will sell the assets of the business and distribute the takings among the creditors. This type of liquidation strongly favours the creditors and gives them a chance to earn back the money they lost on the business in the first place.

Compulsory Liquidation is initiated by a creditor wishing to end the business. This is a complex legal process whereby the creditor will have to start legal proceedings against the business in question. If the business is still unable to pay their debts, a court ruling will appoint receivers to liquidate the company, sell off any assets and raise as much money as possible from the business.

It is almost impossible to give a fair review of each possible solution without knowing the specific circumstances of your business. You should seek professional help to decide which course of action to take. Bear in mind that each will have their own disadvantages, none of them will be completely perfect especially if you are in financial difficulty. It is important not to make any rash decisions, and that you aren’t simply keeping the business alive because you enjoy it; if a business is losing money and is heavily indebted, there is not much you can do to save it.

see also What is liquidation?

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Insolvency Services

2010-03-17T03:18:00.000-07:00

Insolvency Services

Mounting debts, rising expenses, and a decrease in sales; any one of these things can cause your business to go into financial meltdown. Unfortunately, once you’ve reached a certain point, your business is no longer viable and you need to consider how best to cease trading. In much the same way as an individual declares bankruptcy, a business can declare insolvency. Insolvency can come about for many reasons, but once you’ve reached a point when it becomes necessary, you have to act fast to ensure your business doesn’t go further into debt.

Insolvency essentially means your business no longer has the ability pay back the debt they owe to their creditors. Even by liquidating all their assets, the business will never be able to recoup enough cash to pay back their debts, so there really is nothing that can be done to save the business. The creditors will probably have been harassing you because of missed payments, and you may be sick of the constant pressure they are putting you under, so in many ways, declaring insolvency can be a huge relief in the short term. Declaring insolvency is a legal process and requires professional advice to be understood fully, so as soon as you have made the decision, look for an insolvency practitioner who can handle the process for you.

An insolvency practitioner is ordinarily part of a larger firm of corporate lawyers, and will handle any insolvency cases that come their way. These are specialists who probably have years of experience in these situations, so you can trust them to be able to handle the process with minimal hassle and in a professional manner. An insolvency practitioner will make a complete review of the finances of the company, and will want to know many of the inner workings of the business. Although highly unlikely, it is possible that the insolvency practitioner could find a way for the business to avoid insolvency, either by some form of debt consolidation or a closer inspection of the finances. If this is possible, he or she will fully explain the course of action you must take in order to keep your business alive. That is, of course, if you still want to keep your business alive. It is important to consider the long term future of your business, rather than simply trying to keep it afloat. If your business is failing for a reason, such as falling demand, it may be the right time to cease trading so as not to prolong its downfall.

If no solution is possible, the insolvency practitioner will be forced to call a meeting of the creditors. At this meeting, he or she will explain the predicament of the business and tell the creditors the bad news, that their debt cannot be fully recovered. The creditors are then given the choice of liquidating the company, which they will likely choose. By doing this, the creditors can try and recover as much as possible from the liquid assets still in the possession of the business. Any funds recovered will be distributed among the creditors and the liquidation process will take place.

An insolvency practitioner will allow you to keep your distance from your creditors, making the whole process much easier to handle. The practitioner will also fully understand any potential solutions, such as debt reconstruction, refinancing, or consolidation in order to avoid declaring insolvency. Hiring professional help, therefore, could completely save your business and allow you to continue trading. The professional will also be able to take a more objective look at your business in order to decide the best course of action; it can often be difficult not to become emotionally involved when you own a business, which is why professional help is always advised.

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Debt Consolidation and Your Credit Report

2010-03-16T07:47:00.000-07:00

Debt consolidation and your credit report

In these difficult economic times, more people than ever are struggling to pay back the debts that they owe. With skyrocketing unemployment and the high prices of commodities such as fuel, people are simply unable to control their finances in the way that they used to. This has meant a growing need for successful ways of tackling this debt, on the side of both the borrower and the lender. Thousands of people have various forms of debt that they owe to various sources, from household bills to credit card debts; because of this, debt consolidation has become the popular choice for many of these people looking for a stable financial future and an end to the pressures of debt. Debt consolidation does not simply wipe away the debt, but it can make it more manageable and therefore allow you to continue living your life with freedom from debt collectors and harassing creditors.

One of the primary concerns people have about debt consolidation is the affect it will have on their credit report. Because of this, many people avoid acting fast enough and simply end up in an irreparable situation. Debt consolidation will allow you to make one monthly payment instead of the various bills that had previously been pushed upon you. Therefore, it is easier to handle and budget for your repayments. It has also been shown that having one single monthly payment is mentally much more motivational than various smaller bills, so it can affect your future in many ways. The debt consolidation procedure will also allow you to pay back your debt over a longer period of time, giving you more financial freedom in the short term. Obviously, this means that you will have to remain stringent financially for a longer period of time, but it should make your debt much more manageable.

With regards to your credit rating, the debt consolidation procedure should not have any effect at all. If you keep up to date with your new loan, and do not put yourself into debt again with other companies, your credit rating should not be affected. Of course, as soon as you start missing payments, your credit rating will suffer, and because you will be paying over a longer period of time you will have to be extremely careful.

The key to successfully completing a debt consolidation process is having a good handle on your finances. You have to understand what got you into the debt in the first place, and be able to change your situation in the future. It could simply be that you were overspending on your credit cards, with money you didn’t have, which is reckless and must be stopped if you are not to sink into bankruptcy. It could also be that you suddenly became unemployed so need the loan temporarily, remember though that you will need to gain another source of income as soon as possible if you are to pay back your new monthly loan, and the debt consolidation firm will expect you to do so (they will often look at the skills you have and your plans for finding employment before agreeing to work with you on your debt. Whatever the reason for your financial difficulties, you need to change your fortunes sooner rather than later if you are to pay back the new debt. Debt consolidation should not be seen as the easy way out, because it will take a long time to repay and will require a great deal of self control. However, if you are motivated enough, and seek professional advice tailored to your financial situation, you should be able to achieve long term financial stability.

There are many ways to tackle the mounting debts you may be facing, with debt consolidation just one of the tools at your disposal. Each different option will have various advantages and disadvantages, depending on your personal situation, so seeking professional help will allow you to make your decisions based on solid advice.

see also credit checks
see also credit search

www.tenable-solutions.co.uk
www.pure-financial-management.co.uk

Credit Card Debt Avoidance

2010-03-10T07:48:00.000-08:00

Credit Card Debt Avoidance

Credit card debt is possible the biggest cause of bankruptcy in the UK, it is one of the worst forms of debt and has left thousands of people with only the option of becoming bankrupt. The worst part about credit card debt is that all it takes is one slip and it can become a huge problem; it can be anything from losing your job to struggling with illness. Most people live within their means, neither overspending nor saving great deals of cash; they pay their bills at the end of the month and usually have just enough cash to pay their credit card bill. Unfortunately, as soon as you lose any amount of income, or you are forced into spending more than you have, your credit card bill will begin to mount up. Once this debt starts to build, it will only continue to get worse unless you are able to return to your original financial stability. As you can probably already see, things like the financial crisis have left thousands of people suddenly facing unemployment, which will plunge them head first into credit card debt.

Simply understanding the way your credit card works can be a fantastic way of beating away debt. It is amazing how many people are unsure the exact rate of interest they pay, which is a sure fire way of getting yourself into trouble. Even if you know all the terms and think you understand everything, there is bound to be some small print that you have overlooked, so take a good hard look at the terms and conditions which surround your credit card so you know exactly where the pitfalls are. Credit cards sound great until you realise the many ways that you can rapidly end up in debt; one of the biggest problems is that every card has its own terms and ways of catching you out, which is why using multiple credit cards can be treacherous.

Credit card debt should be seen just as any other form of loan, and should be treated seriously because of it. If you’re spending too much and seeing your debt rise, you simply have to cut your spending in as many ways as possible. The banks won’t encourage you to stop spending, because they are perfectly happy for you to carry on moving into debt, so you have to take action yourself.

If your debt is beyond repair, there are still options available to you. Just because you are unable to pay back the huge amounts of debt that you are facing at the current time, doesn’t mean that in the future you won’t be able to. If you appoint a debt settlement or consolidation firm, you could see that huge credit card debt changed into something more manageable. A debt settlement firm will liaise with your bank about your financial situation, and will try to come to an agreement with them about the terms of your borrowing. The settlement firm will explain your financial situation and try to get the level of debt reduced to something that you can manage in your current financial situation. Banks will often agree to this reduction because it simply makes more sense for them to regain some of the money they are owed, rather than none of it when you declare bankruptcy. They will also want to ensure that you continue to use their credit card in the future, which would almost certainly not be the case if you declared yourself bankrupt.

A debt consolidation firm is best used when you have multiple different sources of debt which you are unable to pay. In this instance, the consolidation firm will pay off all your debts, and turn them into one monthly payment which you will generally have to pay over a long period of time. They can turn your debt from being completely beyond repair, into something which you are able to keep under control.

In many cases where credit card debt mounts, professional help is always advisable. However, don’t be afraid to talk to the credit card company about your financial problems and the reasons that your debt continues to rise. It is in everyone’s interest that your financial position remains strong, so trying to reach an agreement with your lender can save you huge amounts of stress.

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Consolidating, Refinancing and Restructuring Corporate Debt

2010-03-09T01:46:00.000-08:00

Consolidating, Refinancing and Restructuring Corporate Debt

If you’re facing financial difficulties, with mounting debts and a long term losses becoming highly likely, you’ll need to take action before things get worse. This is even more so the case in these difficult economic times, where every second counts and thousands of businesses are struggling financially. It is very possible that your business becomes insolvent if you aren’t very careful with your finances, so if you are seeing mounting debts then you need to do something about this before it is too late. If your creditors appear to be getting concerned with your activity (for example, missing payments), there could be increased tension between your business the people that you owe large amounts of money to. If you want to maintain a good relationship with your creditors, refinancing, consolidating, or restructuring your debt could be the way forward.
Debt consolidation is when the business takes out a loan with a debt consolidation company, who will provide you with a loan to cover all your existing debts. This means essentially that you no longer have to pay various different creditors; instead you are paying one lump sum at the end of each month. Debt consolidation can reduce the amount of interest you are paying on your debt, whilst also allowing you to spread your loan out over a longer period. This can help massively in easing some of the pressure from your creditors whilst still allowing your business to continue. You’ll need to negotiate well with the consolidation company to create a solution that protects both parties; after all, the consolidation firm has to feel that they will recoup all the money they loan to you with interest by the end of the loan cycle. If the consolidation firm is concerned that your business will never be able to pay off these debts, it is unlikely they will do business with you.

Debt restructuring deals directly with the creditors as you try and work out a way that allows you to pay off your loan more securely. This helps both parties since it ensures that all the money gets to the creditor in the end, while the business can continue to operate without such high monthly payments. The restructuring will generally take the form of increasing the length of time that the loan lasts for, and could see a reduction in the interest rate you are currently paying. This is where a strong relationship with your creditors can help greatly, as they will be unlikely to negotiate with you if your business has not cooperated previously. Refinancing works in much the same way, and is often seen with mortgages on property.

Any consolidation, restructuring or refinancing must be carefully planned; to do this you will need an extremely accurate set of finances for your business. It will help greatly if you have accurate forecasts for the future of the business. Make these forecasts based on previous growth, not on huge leaps that you think might happen. It is important in these situations to be very conservative with your estimates, because mistakenly believing that your business will thrive in the future, could be very costly. You will need to look at your assets very carefully, and see if you could potentially liquidate any of them without damaging your business too heavily. Anything you can do to reduce the amount of debt you have, whilst also maintaining the health of your business, should be done.

Seeking professional advice is the best way to deal with mounting levels of debt. It can be very hard to look at your own business from an objective point of view, but this is an absolute necessity. A professional will be able to see the weaknesses and tell you clearly how to get yourself out of the situation you are in.

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Consolidating Credt Card Debt

2010-03-05T01:28:00.000-08:00

Consolidating Credit Card Debt

It’s very easy to get yourself into a tricky situation when it comes to credit cards. They are so readily available that many people get drawn into the trap of drawing up huge amounts of debt on various credit cards. Reckless spending is practically encouraged by credit card companies, who can charge through the roof on interest and other fees. If you get caught in this trap, then you’re not alone and there are plenty of people in similar situations, the important thing is what you do now going forward. If you dwell on your past, and don’t change your ways, you’re never going to get out of the financial trouble you are in now. One solution to your problems could be a consolidation of your debts into one payment that is made every month, instead of the multiple payments you may be making at the current time.

As with anything when it comes to personal finance, there are advantages and disadvantages to choosing debt consolidation as a solution to your troubles. It is important to check whether you are even eligible to receive debt consolidation, since if you are currently in legal proceedings with credit card companies, it is unlikely to be an option for you.

Ultimately, debt consolidation means to take a loan out to pay off all your existing debts. This loan then becomes the only debt you have, so all your debt is, in theory, much easier to manage. Generally, people look to try and consolidate their debts so that the single monthly payment they are making is smaller than the various payments they were making before, it is also possible to reduce the interest you are paying on your debt by consolidating your credit card debt. Debt consolidation can also let you off the hook from the credit card companies; when you start missing payments, it is normal practice for a credit card company to start harassing you with letters and phone calls. With debt consolidation, you only have to work with one company which will normally understand your situation much more.

Finding a company to consolidate all your debts is a tricky process, and it is important not to make any rash decisions. You can compare any number of companies online, but the best thing to do is actually talk to someone who can advise you properly about the best way forward. Debt consolidation companies will sometimes have little caveats that may catch you out unless you are extremely cautious, so seeking professional advice could help you make a more informed decision. Also, make sure the debt consolidation company is offering a complete service, which will continue throughout the loan process. The best debt consolidation companies will guide you through everything, and even give you advice on how to avoid falling into the same financial difficulties in the future.

You shouldn’t consider debt consolidation to be the end of your financial troubles, because you are still probably in large amounts of debt. You’ll be paying off that debt for a much longer time by consolidating; this could suit you if you are able to keep a good lid on your finances throughout that time, but if you don’t feel that you can then consolidation might not be for you. Once you have taken out a loan with a debt consolidation company you are under a lot of pressure to ensure that you keep making the payments and stay on the right track. However, it can be a huge relief in comparison to the stresses of dealing with credit card companies.
It is important to remember, however, that debt consolidation companies are profit making businesses, just like credit card companies. As much as they will help you, they will also expect you to pay back your loan to the best of your ability. Choosing debt consolidation is not an excuse to fuel your borrowing in the future, it is a warning sign that your financial situation is very bad indeed.

see also IVA
see also bankruptcy
see also bankruptcy or IVA

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Business Credit Card Debt

2010-03-04T03:54:00.000-08:00

Business Credit Card Debt

The very beginnings of a business are an exciting time for entrepreneurs, but they are also an expensive time and funding is almost always needed before the business can start trading in earnest. Some businesses receive investment from private equity firms, but many take out loans from their bank. A loan may not suffice and may only cover the major costs that your business incurs; therefore a small business credit card is often used for running costs.

Many people are wary of taking out a credit card for their business rather than for personal use, because it can potentially lead to high levels of debt and unnecessary amounts of spending. However, many small businesses benefit greatly from using credit cards; for example, they can be used to separate your business and personal spending, especially on small purchases. You can also monitor your expenditure and spend money based on future income rather than needing money at the time. This is ill-advised if you cannot be absolutely sure that you will be able to pay back the money you owe, but it can be extremely useful if your business has lump sums of income.

It is absolutely vital that you stay on top of your credit card payments, and that you pay the bill in full every month, rather than simply carrying the balance over. If you can pay your payments in full, then do so in order to be able to budget properly for the next month. Leaving small amounts left on your balance can add up rapidly and you can soon find yourself in no small amount of debt. Small businesses are often susceptible to high rates of interest and small debts will mount rapidly if this is the case, unless you have a strong hold on your finances these problems will almost certainly occur.

If you do get into a heavy amount of credit card debt, there are still options available to you, but it is important that you decrease your spending as much as possible in order to accommodate the larger amounts of debt you have ended up with. If you do not do this immediately, your debt will continue to spiral out of control and there will be no way back for your business.
Debt consolidation can be a great help if you have large amounts of credit card debt; the consolidation will turn your various debts into one single monthly payment which will generally stretch over a longer period of time. The advantage of this is that the monthly payment will often be smaller than you had been paying previously and so should allow you to continue trading and maintain some financial stability. You will however have to be much more vigilant financially, and for a much longer period. Debt consolidation isn’t necessarily an easy option, but if you are confident in the long term financial prospects of your business, it could be a revelation.
You could also sign up for credit card with a low interest balance transfer option, allowing you to pay back your debts at a lower rate of interest. These deals can be extremely useful, but it is important that you pay back the debts quickly. If you do not, the rate of interest will quickly rise to higher than you were paying on your previous card, so you could be in a worse situation than before.

Debt renegotiation or refinancing can be another option for saving your business from rapidly rising debt. So as you can see there are plenty of options available to you if you are falling fast into the red. If you talk to a professional financial adviser, you will be able to understand fully the various options available to you and he or she will help you make the best decision possible. Having professional help can be massively important to the long term stability of your business, so don’t be afraid to spend some money in the short term in order to save money in the long term.

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Avoiding Personal Debt

2010-03-03T07:09:00.000-08:00

Avoiding Personal Debt

Nearly everyone who struggles with personal debt problems had no intention of ever overspending on their credit card; as humans we like to think we have a great deal of self restraint, but in reality this is sometimes not the case. We’ve all seen it happen to people, so don’t make yourself the next victim. The best way to do this is by preventing yourself from ever getting into debt in the first place; much in the same way as medicine, prevention is better than cure. It’s very difficult, and sometimes impossible, to get yourself out of debt once it has begun to mount up. However, it’s not all that difficult to keep yourself away from it if you plan correctly.

It’s now very easy to get your hands on a credit card, or take out a loan (or at least it was until the credit crunch hit). It is still relatively easy to get a credit card providing you don’t have a poor credit history, but this doesn’t necessarily mean that you should get one. Decades ago, no one even touched a credit card, people still got into debt but never on the sort of levels that we see today. Some people just keep spending, putting everything on credit and eventually having to declare themselves bankrupt or consider and IVA when they finally run out of credit and their debts have become too high. This is primarily because of the “now” culture that has been created, instead of saving up to buy something, people just put it on credit and hope to be able to pay it back in the future. This is a dangerous game to play as the future is never certain, who knows what financial situation you are going to be in six months from now? Things can change very quickly and running up big debts because “you can” is a very bad idea.

You don’t have to rely on a credit card if you have solid control over your finances. Sit down and make a personal budget, covering all your monthly income and expenditure. Once you have some idea of how much money you have coming in overall, set aside some of it for emergencies (10% is generally a good amount) and some for savings. Once you have done this, you should have some idea how much “disposable” income you have left. It may surprise you just how little you have, which can be depressing in and of itself, but instead of ignoring this problem, look for solutions. Try to cut down on your expenses; even just saving some money on your phone contract could help you save over £200 a year. You may have originally thought that the amount you spent on food could not be cut, but start looking around for offers in the supermarkets and you’ll be amazed how much you can save. If you think you are wasting food, try to figure out what is being wasted and cut back on that.

Sticking to your budget can be just as hard as drawing it up in the first place. Try to make sure you stay on track at all times, even if that means writing out any expenditure at the end of each day. Make sure you not any unplanned expenditure or income so you can adjust your budget accordingly. It is absolutely vital that you don’t become complacent, so try to think of the advantages of staying within budget; even just keeping good control over your finances can be a joy in itself.

If you really must make use of a credit card, make sure you choose one which will suit your financial situation. Avoid any hidden costs that often come with low interest cards, and make sure you compare various cards online before you dive in and get one. Read all the small print so you know exactly what you’re getting involved with, if it sounds too good to be true, then it probably is. Also, seek advice if you need some help with your finances, don’t be afraid to ask a professional if you feel overwhelmed.

see also debt management plan.

see also bankruptcy or iva.

Contact us

www.tenable-solutions.co.uk
www.pure-financial-management.co.uk

Avoiding Bankruptcy

2010-03-02T03:02:00.000-08:00

Avoiding Bankruptcy

Bankruptcy used to be a horrible word; it struck fear into businessmen and the general public whenever it reared its ugly head. In recent times, this concern has lessened somewhat as bankruptcy has become more common than ever, and is even seen in some situations as the most constructive course of action. These situations are rare but sometimes bankruptcy can take a huge weight off your mind and allow you to make a fresh start, albeit with many restrictions that come with declaring yourself bankrupt. Many people have simply had to accept that the only way they can rid themselves of the horrible pressures and huge debts they have is to declare bankruptcy, which is why in such a difficult economic climate bankruptcy has become more common than ever. For many people who have become unemployed and are no longer able to pay back their debts, bankruptcy is simply a way to get out of a vicious cycle and start again; however there are alternatives that could suit you much better than bankruptcy.

It is surprisingly easy to run up high levels of debt if you’re not extremely careful, especially if you lose your main source of income. Many people are currently struggling because the house market has taken a huge hit, leaving their houses worth less than the mortgage they have taken out. The biggest problem with debt is that once you get behind, it is almost impossible (especially if you are unemployed) to catch up, and the debts will simply continue to mount. If you’re extremely careful with your finances, and you have a stable job, these things never really enter your mind; however, when the world economy very nearly collapsed, thousands of people that were previously positioned well financially were thrust into difficult in a matter of days. Thousands of people rapidly became insolvent, meaning that they were no longer able to pay back their debts when needed to. These debts could be anything from credit card loans to simple household bills. Insolvency leaves you with very few options, but it certainly leaves you with more prospects than some people would lead you to believe. Some advisers would tell you that declaring bankruptcy is the immediate solution, but there is another option.

You need to get in touch with a professional debt consolidation firm, who will be able to tell you whether you can restructure your debt payments into something more manageable. In general, a debt consolidation will take your multiple monthly payments and turn them into one smaller lump sum which is payable to the consolidation firm. This lump sum will usually be smaller than the overall payments you used to make, but the loan will often take longer to pay off. Therefore, you are effectively putting yourself into debt for a longer period of time, but in many ways this is a better option than bankruptcy.

If the debt consolidation believes that in the long term you will be able to recover financially and pay them back in full, they will advise you to restructure your debts. They will not advise you to do this if they think that you are going to struggle to pay back their loan, so it is often a good guideline of your situation if a debt consolidation company is willing to work with you. Obviously, they will take a good look at your financial situation to decide whether you are a good investment, and they will take into account whether you are employed, unemployed, or you have good prospects of becoming employed in the near future.

Debt consolidation is generally considered to be the hard way out of financial difficulty, but at the end of the day, it has many advantages over bankruptcy. For starters, once you come out of your debt consolidation and you have fully repaid the loan to the debt consolidation firm, you are free to do whatever you want. There are pretty much no restrictions as to what you can do in the future, whereas when someone declares bankruptcy, there are instantly many restrictions especially with regards to future employment.

Obviously, there are situations when bankruptcy is the best option, but it totally depends on the type of person you are, and your future prospects. If you talk to a professional financial advice company, they will be able to explain all your options to you and give you a solid understanding of the potential paths you can take.

see also IVA

www.tenable-solutions.co.uk
www.pure-financial-management.co.uk

Advantages of an IVA

2010-02-25T08:57:00.000-08:00

Advantages of an IVA

An IVA is an Individual Voluntary Agreement, which is one of the only alternatives to bankruptcy and, depending on your situation, could be a preferable solution. Ultimately, an IVA allows the borrower to spread the debt which needs to be paid, over the period of five years. This can often allow a business to keep running so that it can grow to bring itself out of debt, but it is possible that it just prolongs the inevitable. Following the Insolvency Act of 1986, an IVA became something supported by the government in a bid to keep as many sole-traders afloat as possible, whilst wishing to reduce the amount of consumer bankruptcy.

There is a great social stigma attached to going bankrupt, but this is nothing compared to other problems that you could face once it actually happens. You can’t, for example, join the armed forces or work in positions of the state, whereas if you hold an IVA you can hold any position you want. You can keep your job, or continue running your business, with an IVA, but this is nearly always impossible if you are forced to declare bankruptcy. Most IVA’s won’t even specify that your employer need know you are having such difficulties, and in generally you can keep an IVA much more low key than bankruptcy. The newspapers won’t catch wind of your IVA, and your friends won’t have a clue, so it can often be much less stressful than bankruptcy.

If you’re lucky, or you weren’t too reckless with your debt, five years will seem like a long time to pay it back, so if you have confidence that you can pay your debts back given time, then an IVA is almost always preferable to bankruptcy. It is important to remember that bankruptcy is very “final”, that is to say that once it has happened, there really is no going back. You could lose friends, family, and everything around you if you go bankrupt, whereas five years of heavy budgeting and financial constraint under an IVA will seem like nothing in the bigger picture of your lifetime.

It is actually surprisingly costly for bankruptcy to take place (Ironic in many ways), so it is often preferable for the banks to accept an IVA instead of going through the legal procedures of bankruptcy. The IVA is very easy to agree once your bank has accepted your situation, and doesn’t involve anything like the legal processes that plague bankruptcy proceedings.
If you successfully complete an IVA, your credit rating won’t be completely shattered, as it would be if you had gone bankrupt. Once you’ve come out the other side, there is a world of opportunities available to you and you’ll probably have learnt some harsh lessons without losing too much of your life.

By entering into an IVA, you are no longer being forced to do anything in particular; you are simply required to pay back the debt in instalments. Bankruptcy may require you to sell your house or other assets, whereas an IVA leaves you to decide the best way to pay back the debt you are in.

As with many things, it is better to prevent yourself from ever getting into the situation where you need to choose between an IVA or bankruptcy, however, once you are in this situation then it is important to make sure you make the right decisions. Bankruptcy may seem like a quick fix, but it has a huge number of lasting factors that will hinder you for a lot longer than five years An IVA, though, may not suit you and there may simply be no way for you to pay back your existing debt. Obviously both options have their advantages and disadvantages, so make sure to weigh them up before making any rash decisions. Seek professional help if you are particularly concerned, and make sure you have the support of your family and friends before trying to solve the problem all by yourself. Making financial decisions based on emotion is a bad idea, so surrounding yourself with good advice will help you a great deal.

what should i do? bankruptcy or IVA
bankruptcy FAQ

www.tenable-solutions.co.uk
www.pure-financial-management.co.uk

About Bankruptcy

2010-02-24T02:07:00.000-08:00

About Bankruptcy

Small business owners are extremely susceptible to bankruptcy these days, primarily because they put a huge portion of their savings or income into the business, and if the business doesn’t give them a return on that investment, they are left with nothing. These are prime examples of people making financial decisions based on emotion rather than hard facts. You simply can’t keep pumping money into a business that isn’t certain to make money, no matter how much you want the business to survive. Many entrepreneurs are given the choice, either lose your business or lose your home and any assets you have. Obviously, most people ultimately choose to sacrifice their business instead of their lives, but it is nonetheless a very difficult decision to make. To liquidate a business that you have spent years of your life working on can be crushing, and we don’t want to see people having to make this sort of decision, which is why we believe that prevention, not cure, is the best way to fight financial problems.

If your business appears to have been hit hard by the financial whirlwind which has swept across the country, all is not lost. Despite what Gordon Brown promised, boom and bust phases of the economic cycle still exist, it is purely a matter of riding them out. Very few people predicted the collapse of the banks and the huge credit issues which most businesses now face, least of all small business owners, but these periods are almost inevitable. Many businesses survive through these periods, possibly because their business does not suffer when luxury spending decreases, or because their business has enough financial clout to be able to withstand some temporary losses. Small businesses are very rarely in this privileged group however, and so they must look to different and creative ways of avoiding spiralling levels of debt.

Temporary loans, debt refinancing, debt consolidation; any of these options could give your business the chance to survive the storm and continue trading. Which option you choose - there are many – largely depends on the type of business you own and the future of your business. If you are experience high levels of debt already, you will need to look at refinancing or consolidating your debts so as to make them more manageable. It is highly likely that you will be able to work out a deal with your creditors that will allow you to pay back your loans over a longer period of time, for a smaller monthly payment. These types of deals are great ways of ensuring that your business doesn’t simply go further into the red every month, but the also require a great deal of financial restraint and a strong plan of action for the future. You will need to be able to convince your creditors that your business will bounce back from the difficulty it is in at the current time, which is no easy thing to do. Hiring a professional firm to handle the process of renegotiation could give you more of chance of reaching a favourable deal with your bank.

Taking out a temporary loan could allow you to continue trading through a difficult period; however, you will essentially be borrowing money in order to borrow money, meaning that your debts could mount up very quickly indeed. If you are going to take out a loan, you need to be absolutely sure that the loan will help rather than hinder your business. It is also important that you talk to the loan company about your situation, so they know exactly where the money is going. By explaining your financial situation, it may harm your chances of receiving a loan, but it could potentially make the bank give you a more favourable deal to ensure that you will be able to pay it back.

see also Bankruptcy FAQ
see also Bankruptcy or IVA
see also Bankruptcy
see also IVA
see also CVA

A handy list of helpful links on the Tenable Solutions website

2010-02-23T03:03:00.000-08:00

Site Map

Articles:
about Bankruptcy
advantages of an iva
avoiding bankruptcy
avoiding personal debt
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debt consolidation and your credit report
insolvency services
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Tenable Solutions XML sitemap

Contacting Tenable Solutions for our FREE advisory service

2010-02-19T03:50:00.000-08:00

Contact Us

Thank you for taking the time to read about our FREE advisory service.

No matter what problems you face today, we can help them go away with our unique one visit solution.

Acting quickly is the key to survival and the key to success: with us working together we can overcome any obstacles in your way

You are still in control: let's keep it that way.

Call today for a free chat with one of our advisors or alternatively email us or submit our callback form, and we will call you back at a time to suit you.

Call FREE 0800 4 96 95 94

CALL TODAY..WE ACT TODAY..THE WORRY STOPS HERE

Our sole aim is to put you back in a position where you can take your company to the next level and stop the worry of what you may be experiencing now.

You have nothing to lose by seeing us, and you will pick up information that will assist you in moving forward.

We can only help if you make the first move and call us, for our FREE advisory service, where one of our business rescue professionals sits with you and works out the solution's that is right for you.

Tenable Solutions Limited
Unit 3 Thornes Office Park
Monckton RoadWakefield
West Yorkshire
WF2 7AN

t: 0844 855 0 225
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www.tenable-business-support.co.uk
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Contact us

Help with utilities

2010-02-18T04:17:00.000-08:00

Utilities-Electric-Gas

Problems with Power?

Help is Tenable – whether disconnection is pending or immediate, you have to contact our dedicated team TODAY.

We’re here to help, and IT’S NEVER TOO LATE! We will source you the best price, get you reconnected or keep existing supplies on.

The continuous rise in prices for gas and electricity, and more pressure being applied to businesses it means your supply is constantly at risk.

Whatever your need or situation – Help is Tenable

Call 0844 855 0 225

VAT Services

2010-02-15T01:24:00.000-08:00

VAT Services

VAT Health Check

We can provide a VAT health check to pinpoint potential problems before they have the chance to cause you real difficulties.

Have you any VAT debt at the moment, is the VAT bailiff due, or could one be calling soon?.
The VAT will not go away if they are owed any money, unless we help you to make the VAT bailiff go away!.

Having looked at your VAT affairs we can recommend a diagnosis to improve your efficiency, cash flow thus creating savings.

VAT Returns

VAT returns late?Under pressure to submit them?We can help by completing all your vat returns within 7 days, and start negotiating with the VAT regarding any outstanding liabilities you may have.

VAT Assessment Help

If you're unlucky enough to fall foul of the HMRC and receive a VAT assessment, we can bring our wealth of experience to bear to equip you with the know how on how to mitigate penalties and interest, reduce assessment, or have it completely withdrawn.
VAT Planning

When undertaking new business ventures, trading overseas or becoming involved in property transactions or share issues, timely planning advice can save time and money and avoid the pitfalls associated with such transactions.

VAT Appeals

If HMRC will not initially withdraw an assessment or contest a ruling our expert advisor will assist you with advice on how to appeal and carry it forward to the VAT Tribunal. In addition we can advice and assist on how to proceed with cases involving surcharges, penalties, nterest and both civil and criminal fraud.

EC VAT Refund

We can obtain refunds on VAT incurred within the member states of the EU

CALL TODAY WE ACT TODAY:
Call Now for Instant help & advice.
0844 855 0 225

FREE CCJ Help Line

2010-02-11T01:24:00.000-08:00

CCJ Free Help Line

Over the past six months we have seen a significant increase in the number of companies* who have been issued with County Court Judgments (CCJs) – some of these may be valid and others may be because of a dispute.

To help companies* who may find themselves in this situation we have set up a dedicated FREE CCJ HELPLINE; this is a completely free service and we have a team of people who are fully trained to deal with all aspects of County Court Judgments (CCJs). They can help with matters such as:-
· Completing your claim form
· Offering a payment plan
· Getting a judgment marked as “SATISFIED”
· Getting a judgment removed from your credit file
· Advising what your options are
· How to buy more time

Whatever your questions our team of experts will be able to guide you in the right direction.
If you would like to have a friendly, informal chat please call Andy on our FREE CCJ HELPLINE on 0800 4 96 95 94.

*In this instance the term “companies” does not solely mean Limited, we can help Sole Traders and Partnerships alike.

www.tenable-solutions.co.uk

Debt Advice For Scotland

2010-02-03T01:29:00.000-08:00

Scotland

Debt Advice for Scotland.

Tenable Solutions Limited are now able to offer advice for companies / individuals in Scotland. There are small differences in the law that covers Scotland and these affect the solutions that you are offered for your problem.

It is uncommon for a company to offer advice to Scotland as well as England and Wales but we have a qualified and dedicated team who can provide expert debt advice for Scotland as well as England and Wales. We understand the differences in the law and can advise the best possible route for you based on your personal circumstances.

LILA.

LILA is similar to the Debt Relief Order which came into force in England & Wales in April 2008. In a nutshell it is a new route to bankruptcy for people who have a low income and negligible assets and reside in Scotland.
LILA is a solution for people who are unable to clear their debt because they are unable to repay their debt within a sensible timescale this being because they are on a minimal income and have no assets.

LILA is granted by the Accountant in Bankruptcy if you meet the strict criteria. The current cost to apply for bankruptcy via LILA is £100.

The current determining criteria for LILA is:-
• Earning less than £229.50 per week for 40 hours (if you receive income support, job-seekers allowance, working tax-credits then you will be treated as meeting the low income text even if your weekly income is more than £229.50)

• Do not own one single asset worth more than £1,000 and total assets worth no more than £10,000

• Not able to meet your current repayments and charges

• Have debts over £1,500
As with everything relating to debt there are pros and cons – everyone’s situation is different. If you would like to find out more about LILA then please do not hesitate to get in touch.

Protected Trust Deed.

A Protected Trust Deed is similar to an Individual Voluntary Arrangement (IVA) in England & Wales. Unlike many other financial solutions it offers flexibility, affordability and protection from your creditors.

If you enter into a Protected Trust Deed, you make one affordable monthly payment to an Insolvency Practitioner (IP); they then distribute this to the creditors. The IP also deals with the sale of any significant assets that you may have and again this would be distributed to your creditors.

Some of the advantages of a Protected Trust Deed Include:-
• Interest and penalty charges will be frozen.
• Repayment is set at what you can reasonably afford and this is all you will pay.
• All correspondence and queries from your creditors will be dealt with by your Trustee (IP).
• All pressure from your creditors will stop.
• After completing a protected Trust Deed (normally 3 years), you will be ready to start afresh financially.

If you would like to discuss Protected Trust Deeds then please do not hesitate to contact our experienced and knowledgeable staff.

Sequestration.
Sequestration is known as “bankruptcy” in England & Wales.

It is imperative that prior to Sequestration you seek advice; sometimes another option may be better suited to your situation such as LILA or Protected Trust Deed.

The key advantages of Sequestration are:-
• Income and benefits will be yours to keep.

• Your creditors will no longer be able to pursue you or take action against you to recover what you owe.

• You will not have to make further payments to your creditors BUT you will have to pay any surplus income to your Trustee.

• You can expect to be discharged after 3 years.
With everything there are disadvantages. The disadvantages of Sequestration are:-

• If you acquire any money (wages and pension proceeds excluded) or property after the dates of your Sequestration and before the date of your discharge, you may have to surrender these to your Trustee.

• If you are in paid employment, you may have to make a regular contribution for more than one year.

• If you own any valuable assets (including endowment policies) these will have to be sold.

• It is deemed unlawful to incur credit of more than £500 whilst Sequestrated unless the lender is aware that you are an undischarged bankrupt.

• You are not allowed to start up or be involved in the day-to-day management of a Limited company.

• You are not allowed to act as a Member of Parliament and there are certain other restrictions, such as acting as a member of any school board or local council etc.

• Sequestration will be advertised in the Edinburgh Gazette and may be noted by credit referencing agencies.

• You may have difficulties in obtaining credit after your discharge.
Everyone’s individual situation differs and so does our advice. With a few simple questions we will be able to advise you on the best option to suit you.

If you would like to discuss Sequestration please do not hesitate to contact us.

Debt Management Plan

A Debt Management Plan is the same in Scotland as it is in England & Wales. It should be viewed as a short-term debt solution and is an informal arrangement with your creditors.

It is an ideal solution for someone who needs to reduce their monthly repayments in order to get their finances back on track. The Debt Management Process begins by assessing your income and expenditure – once this has been done it then becomes clear how much money you have “spare” each month to pay your creditors.

We then negotiate on your behalf with your creditors to accept a lower monthly payment. Once this has been done you pay your monthly payment to us and we then distribute it to your creditors on your behalf.

The advantages of a Debt Management Plan are:-
• Relives creditor pressure

• We manage your monthly payment therefore you pay one simple, affordable payment

• In many cases your interest can be frozen or reduced

• There are no penalties for cancelling the plan at anytime

If you feel that you would benefit from a Debt Management Plan or would like to discuss your options then please do not hesitate to contact us.

Tenable Debt Recovery

2010-01-14T01:27:00.000-08:00

Tenable Debt Collection

The words “debt collection” comes with a lot of stigma. Over the past few years this industry has been tarnished due to unlicensed companies. This makes it difficult for people to know where to turn when they need to collect a debt. Tenable Debt Collection is a subsidiary of Tenable Solutions Limited and we hold a fully up-to-date consumer credit license; this allows us to legally collect debts.

We are proud to say that we use effective AND lawful techniques to collect debts whether they are commercial or personal. Many debtors are using the current economic climate as an excuse for the debt and on the back of this are offering token payments in respect of their debts. We work solely for you and we will work with you to find a repayment that suits you – if this cannot be adhered to there are other options available which you may not have considered. If the debt is owed to you by an individual you could have a charging order placed on their property – this would mean that you hold a charge on their property and it would need to be paid prior to the sale of a house in the same way their mortgage would. Another option could be issuing a Stat Demand for bankruptcy; this is a very, very effective way to collect a debt especially if the debtor has assets or is afraid of the publicity that bankruptcy brings! You could even do both – this would mean that if the bankruptcy was granted you would still hold a charge on the debtor’s property. If the debt is owed to you by a company then there are also various routes you can go down, a petition can even be issued to “wind-up” the company.

Of course the above options are examples; your individual case would be assessed and then you would be advised on the best course of action. One thing is for certain though – we do not send numerous letters to the debtor in the hope that at some point they make contact. We use all our knowledge and facilities to get your money back and recover your costs.

We firmly stand by our company ethos to be honest with our customers, there are no hidden charges. Our experienced staff has a wealth of knowledge on all aspects of debt collection – they can be contacted during office hours to receive a no obligation quotation.

We have a unique way of collecting debts, without the strong arm tactics.

We enjoy a 98% success rate collecting debts within the first 21 days.

We have our own unique system for collecting debts, dont waste your money with companies saying they can collect debts by letter writing, and ploys to get your cash, this as you will know does not work.

We have the one stop solution, you will be amazed at our results.

So don't give up on those unpaid invoices or hope that they'll come through "soon". Eliminate the doubt and get your cashflow back! Please contact us today for more information.

Debt Problems
You may be in debt yourself because you are not getting paid ?
If you think you are in serious debt then it is always best to seek help at the earliest opportunity before it gets worse.

“Remember” a problem shared is often a problem halved and can soon help get rid of those sleepless nights and relentless creditor pressure. If you have already in your possession, CCJ`s, Statutory Demands, Petitions for Bankruptcy or Petitions for winding up of your business, we have the answers. Don’t delay; ring me (Andy) today 0844 855 0225.

PVA - Parnership Voluntary Agreement

2010-01-04T01:13:00.000-08:00

PVA's - Partnership Voluntary Arrangements

A PVA is a formal insolvency procedure enabling a partnership to make a proposal to its creditors regarding payment of debts, or a scheme of recovery for the business interests involved.

A PVA is similar to a Company Voluntary Arrangement in that it is a formal arrangement with the partnership's creditors for an agreed duration and under terms agreed with creditors. Should a partnership find itself in a position where it is insolvent or experiencing severe cash flow problems, but has a viable business which will generate profits by trading on, there are a number of options available to the partners and/or the creditors under the provisions of the Insolvency Act 1986 and the IPO, such as the formal winding-up of the partnership as an unregistered company (possibly in conjunction with the bankruptcy of one or more of the partners), a partnership administration order (which is similar in procedure and effect to a standard administration order) or a PVA (possibly in conjunction with interlocking individual voluntary arrangement's ('IVA') of one, some or all of the partners).

In the case of a PVA, if approved by creditors, the partnership will be protected from the actions of its creditors to allow it to continue its business. The PVA may be approved by creditors on basis that it gives the partnership a certain time frame to realize an asset and/or to make contributions from future profits for a set period, with a view to achieving a recovery to creditors, which may not be available in the case of a winding-up of the partnership.

In a PVA, (unlike the procedure for IVA's) there is no protective interim order so consideration should be given to first obtaining an administration order in respect of the partnership, to obtain protection from creditors prior to implementing a PVA. This would depend upon the level of creditor pressure at the time.

Implementing a PVA
The procedure for implementing a PVA is relatively straightforward, although the proposals for the arrangement can be detailed and, depending upon the partnership's affairs, may be complex to draft. The partners of the firm must propose the PVA and, dependent upon the partnership deed, it is likely that unanimous approval is required. A qualified insolvency practitioner is appointed and acts as nominee and will assist and advise the partners in completing proposals to creditors, which will include details of the partnership's and partners' individual financial affairs. The nominee will report to the court on the proposals and a copy of the report, together with the proposals, will be sent to all creditors, giving at least fourteen days notice for a meeting for creditors to consider and vote on the proposals.

At the meeting the proposals will be approved if 75% majority in value of the creditors present in person or by proxy vote for acceptance of the PVA. It should be noted that if more than 50% in value of non-connected creditors vote for rejection of the PVA, it will fail (connected creditors would include employees of the partnership, other partners and their relatives). Once the proposal has been approved, it becomes binding on all creditors who have notice of the meeting of creditors. Secured creditors will not, however, be bound unless they give their express consent. Preferential creditors will be bound if the proposal does not affect their priority or their relative dividend entitlement. The nominee, or another person appointed in his place, will then supervise the implementation of the arrangement.

Once the arrangement is in place the partners will retain management of the partnership and the supervisor will monitor the arrangement and ensure that the terms of the proposals are adhered to. It will also be necessary for the supervisor to agree creditors' claims and to distribute funds as and when appropriate.

PVA Pros and Cons
The main benefit of the PVA is that once it has been approved by creditors, and assuming the partnership complies with the terms of the arrangement, the partnership creditors are unable to pursue the partners' individual estates for payment of any shortfall under the PVA. Other benefits of this procedure are that in the cases of larger partnerships, implementing interlocking IVA's for all of the partners may be difficult or impossible to administer.

It is also likely that, particularly in the case of professional partnerships, in view of the fact that any value for goodwill will be tied up in the partners themselves and their ability to generate fees, trading on will probably enhance realizations. In addition, by avoiding bankruptcy proceedings from the partnership creditors, in the case of professional partnerships the partners may avoid expulsion from their recognized public bodies, which could result in an inability to continue working in their profession.

The disadvantages of an PVA; are that unlike an IVA there is no interim order so the partnership may be forced to consider an administration order to obtain protection from creditors, pending the implementation of the PVA. An administration order is costly to obtain and may only be appropriate in the case of larger partnerships. A further disadvantage is that the PVA will not protect the partners from the actions of their personal creditors.

Client Testimonials

2009-12-22T01:27:00.000-08:00

Client Testimonials

We take our clients views very seriously. Once a case has been completed we issue a questionnaire for our clients to complete. We encourage our clients to write both positive and negative comments as this enables us to improve our service – the below comments have not been amended, they have simply been copied direct from our clients words.

To protect our clients’ integrity all names have been removed, this is in accordance to the Data Protection Act. Original copies of the testimonials are kept at the Tenable Solutions Limited head office.

CLIENT TYPE: Sole-Trader
BUSINESS: Construction
AREA: South Yorkshire
TYPE OF CASE: Bankruptcy
COMMENTS: I was originally referred to Tenable Solutions Ltd through my accountant. Since I first called Tenable Solutions I have always found them to be very helpful – everything was explained in terms I understood and the length of time they took to complete my case was like lightening! I am over the moon with the whole service (especially the legal team) – everything worked out as they said it would and there was no nasty surprises. I would recommend their services to anyone in a heart-beat – everyone was so knowledgeable and approachable. I cannot honestly think of any improvements they could do to make to their services better!
DATE: April 2009

CLIENT TYPE: Sole-Trader
BUSINESS: Transport
AREA: Buckinghamshire
TYPE OF CASE: Bankruptcy (defending a petition)
COMMENTS: I would like to say a huge thank you to the team at Tenable Solutions Limited with the help clearing the bankruptcy petition which threatened me last month. I know that the team worked tirelessly for the outcome and I am hugely grateful for all the hard work and dedication that went into it. Tenable Solutions Limited dealt with my problem in a sensitive manor and addressed every issue with great care. My thanks are expressed with deep gratitude and I sincerely believe that they will no doubt go from strength to strength and have many more satisfied customers.
DATE: July 2009

CLIENT TYPE: Limited Company
BUSINESS: Care Home
AREA: Staffordshire
TYPE OF CASE: Business support
COMMENTS: I was originally contacted by Tenable Solutions Limited by letter regarding a CCJ my company had received, from the moment I called Tenable Solutions Ltd I realised that they were on my side. I was advised that as my company had just had a few problems (due to illness) that Tenable Business support Service would be the best thing for me. In such a short space of time my companies credit is improving (they have managed to get the CCJs marked as satisfied and the Winding-Up Petition removed). I found it really helpful and it was nice to speak with someone who understood my problems and had a personal approach. The service is excellent, the staff are professional and helpful I would certainly have no hesitation in recommending their services to my associates. On the whole the service has been fantastic and I really feel that Tenable Solutions Limited are part of my team!
DATE: October 2009

CLIENT TYPE: Limited Company
BUSINESS: Car part manufacturer
AREA: West Midlands
TYPE OF CASE: Liquidation
COMMENTS: I was recommended the services of Tenable Solutions Limited by a business associate. I was suffering major cash-flow issues and decided to give them a call to see if they could help. After investigating my situation fully it was decided that my existing company would be liquidated and a new company formed. This was done swiftly and I found all of their staff friendly, helpful and knowledgeable. I would have no hesitation in recommending their services.
DATE: October 2009

CLIENT TYPE: Limited Company
BUSINESS: Construction
AREA: Lincolnshire
TYPE OF CASE: Compulsory Voluntary Arrangement (CVA)
COMMENTS: I was originally contacted by Tenable Solutions Limited by letter due to several CCJ’s I’d received and a Winding-Up Petition. I called Tenable Solutions and arranged a free consultation. I have found that all of the staff at Tenable Solutions are helpful, knowledgeable and punctual – most of all the legal team! I was given regular updates on my case and was extremely pleased with the length of time my case took to complete. I would be more than happy to recommend the services to any business associates as I am so pleased with the way they have helped me turn things around.
DATE: November 2009

CLIENT TYPE: Limited Company
BUSINESS: Window firm
AREA: West Midlands
TYPE OF CASE: Company Voluntary Arrangement (CVA)
COMMENTS: I telephoned Tenable Solutions Limited after I received a fax; we were suffering from cash-flow issues which in turn had led to a couple of CCJs being issued against the company. From the moment we met with Tenable Solutions Limited we were reassured; we felt supported and gave us the confidence to want to survive. All of the staff at Tenable Solutions Limited were friendly and helpful but I found that they were very approachable. We have already recommended your services to some business associates and will have no hesitation in doing so again!
DATE: November 2009

CLIENT TYPE: Limited Company
BUSINESS: Security Company
AREA: South Yorkshire
TYPE OF CASE: Liquidation
COMMENTS: “A friend of mine recommended Tenable Solutions Ltd to us after we received a Winding-Up Petition. As we are quite local we visited their offices and from day one the service we have received has been Excellent; all of the staff were friendly and considerate and we were kept up-to-date on a regular basis. Any problems / queries we had were dealt with quickly and the whole process was handled very, very well and it cannot be faulted! I would happily recommend them!”
DATE: November 2009

CLIENT TYPE: Limited Company
BUSINESS: Textiles (buying & selling)
AREA: DerbyshireTYPE OF CASE: Liquidation
COMMENTS: “I was personally recommended Tenable Solutions Ltd after suffering with cashflow problems. The staff at Tenable Solutions were extremely helpful and they were always friendly. I also feel that the choice of Reciever was excellent.”
DATE: November 2009

Pure Financial Management - Debt Management Plan

2009-12-18T07:33:00.000-08:00

Pure Financial Management-Debt Management Plan

Offering you Pure impartial advice for a brighter financial future

Are you struggling to meet your minimum repayments to your credit cards, loans, catalogues or store cards? Call Pure Financial Management today. With one simple phone call we can offer you expert advice based on your situation that is impartial and covering a wide range of options.

What are the advantages of Debt Management?

ü You only pay one affordable monthly payment
ü You will have your own Personal Finance Manager
ü We will liaise with all your creditors
ü We will ask creditors to freeze interest and charges
ü We will pay your creditors on your behalf
ü We will help you to gain control of your finances

Visit Pure financial management NOW or call Andy on 0844 855 0 225 to see how we can help you.

Asset Protection

2009-12-17T02:19:00.000-08:00

Asset Protection

Worryingly the majority of the companies that we visit do not have the correct protection in place for their assets. They may have taken advice from their accountant or simply believe that a Directors Loan offers all the protection they need. What they don’t realize is that if the company closes (or is forced to close) the Directors Loan would not receive any preference over any other creditor.

Tenable Solutions Limited offers a proactive approach to protecting company assets; this can be done at any stage of business and guards against any action that may be taken. As companies tighten their belts to ride the financial storm, they are thinking of effective ways to collect their debts. This means that more companies are being issued with County Court Judgements (CCJs); these may be justified or may be part of a dispute. Even if the action taken is a dispute assets can be placed in jeopardy – protecting them correctly ensures that they cannot be taken.
Imagine the quandary if a bailiff walked into your premises today (if you premises are solely commercial they can enter without permission) – what could they take? In 99.5% of the cases they can take anything. There is a grey area in bailiff law which covers tools of the trade; it is a little known fact that when bailiffs refer to tools of the trade it only refers to one set. Therefore if for example the debtor runs a large hairdressers employing several hairdressers the bailiff only need leave one pair of scissors, one hairdryer, one set of combs etc. This was an amendment to the 1981 Supreme Court Act in 1996.

It states:-
“Section 138(3a)(a)(i) such tools, books, vehicles and other items of equipment as are necessary to that person for use personally by him in his employment, business or vocation”

Imagine how that could ruin the livelihood of a business; it could be costly and time consuming to purchase new “tools” in a short space of time.

Some companies we have visited have illegally protected assets, they have done this with information they have retrieved from the internet. Luckily, we have now ensured that they are protected within the law. Illegally protecting assets could be construed as misconduct and is viewed dimly by the courts and action could be taken on the Directors personally.
Tenable Solutions Limited specialize in legally protecting assets, this can be done quickly and conveniently and without disrupting trading.

It doesn’t matter whether the company has just set-up, been trading seventy years has £30million or £10,000 turnover. What matters is they have assets that need protecting, this could be physical assets or money personally lent to the company.
If you would like to learn more about protecting assets and how it could be of a benefit to your company, contact us for an informal chat.

All your assets can and must be protected, for your safety as well as your business.
Tenable Solutions Limited specialize in legally protecting assets, this can be done quickly and conveniently and without disrupting trading.

Get in touch today to see how we can protect your assets. Speak to Andy on 0844 855 0 225.

see also tenable business support.

Tenable Accountancy

2009-12-16T07:30:00.000-08:00

Tenable Accountancy

Tenable Accountancy Services offers a friendly impartial professional service to sole traders, partnerships and small limited companies.

Are you are struggling to keep on top of your business finances?

We offer a totally unique service that is tailor-made to suit your business’s individual needs. We pride ourselves in providing an efficient and affordable bookkeeping solution that takes the stress out of dealing with your finances and allows you to concentrate on what you do best, running your business.

Some of the many services we provide include:
® Sorting your paperwork and records (including inputting on to computer)
® VAT Returns
® Self Assessment
® Report producing

In addition we can offer advice on:
® Effective debt collection.
® Assistance on elegant exit strategies – do you want to sell?
® HMRC advice – to ensure you are being compliant and to solve any problems/queries.
® Advice on cashflow issues.
® Help raising finance.
® Financial planning advice – both short & long-term.
® Advice on legal matters.

Call me (Andy) today and see what a difference we can make to your business!
0844 855 0225

Tenable Business Support Service

2009-12-14T03:11:00.000-08:00

We don’t need to tell you that the past two years have been turbulent financially; so many businesses have had to sadly close their doors and cease trading. Some of those businesses may have had their borrowings drastically reduced or their creditors may have withdrawn their credit limit or more serious HMRC (Tax or VAT) may have issued proceedings! If only they’d had someone to discuss this matter with to get a different perspective on their situation - the outcome may have been different!

You may currently be a member of organisations such of Business Link or The Federation of Small Businesses – are they fulfilling your needs? Research has told us that the majority of companies feel that they are not getting the support required. Some companies also told us that they go to their solicitor when they have a query which the majority of the time can be costly and does not always solve their long-term problem.

We feel that the Business Support Service is a totally unique product; the package is tailor-made to suit your business’s individual needs. You will be given access to a personal account manager who will be on hand to provide support not just during office hours. We understand that most people in business do not work “9-5” therefore you can contact your personal account manager in the evenings and on weekends too. Whenever you feel you need some friendly, impartial advice.

We excel as a company because all of our services are in-house; we have a fully trained and experienced legal department as well as our own accounts department. Once you become a member of the Business Support Service you will be assigned your own personal account manager. Your account manager will oversee all of your queries and ensure that you have the answers quickly and in terms that you understand.

Whatever level you are at the BUSINESS SUPPORT SERVICE can help you, whether you are a sole-trader or a large Limited Company. We have a wealth of knowledge to assist and share with you.

Just some of the services included in our package are:-
• On site visit from your Personal Account Manager (if required).
• Access to your Personal Account Manager during office hours, evenings & weekends.
• Advice on all legal matters.
• Ensuring that your assets are protected correctly.
• Advice on effective debt collection.
• Assistance on elegant exit strategies – do you want to sell?
• HMRC advice – to ensure you are being compliant and to solve any problems/queries.
• Advice on cashflow issues.
• Help raising finance.
• Financial planning advice – both short & long-term.
• Assistance with CCJ’s, Stat Demands, Winding-Up Petitions, Writs of FIFA, Bankruptcy or any form of Insolvency.
• Monthly newsletter.
· FREE Credit Checks.

The above list is not conclusive; if you have a specific requirement that is not listed please do not hesitate to contact us for a friendly, informal chat.

Once you have joined the Business Support Service you will be issued with a membership card, this will hold your unique reference number and also the contact details of your personal account manager. From the moment you register with us you can begin to utilise our services and knowledge on the issues that concern you.

The Business Support Service is completely flexible; you can subscribe either monthly or annually dependant on your circumstances.

MONTHLY SUBSCRIPTION £25.00

ANNUAL SUBSCRIPTION £249
(a saving of £51!)

Call NOW on 0844 855 0 225 and ask to speak to Andy or email andy.walker@tenable-solutions.co.uk

http://www.pure-financial-management.co.uk/
http://www.tenable-business-support.co.uk/
http://www.tenable-debt-collection.co.uk/
http://www.tenable-solutions.co.uk/
http://www.tenable-accountancy.co.uk/

Liquidation

2009-12-11T06:26:00.000-08:00

What is liquidation?

Many people ask us this question every day and it's really a straight forward answer.
Liquidation usually means, the company's trading stop and its assets are turned into cash or "liquidated". All other possible liabilities, like employment or renting a property, are stopped.

There are four types of liquidation in the UK:
Creditors Voluntary Liquidation
Compulsory Liquidation
Members Voluntary Liquidation

Creditors Voluntary Liquidation
Creditors Voluntary Liquidation is started by the directors, they tell the shareholders the company is not viable, it is insolvent and they must stop trading. The shareholders then ask a licensed insolvency practitioner to call a creditors meeting as soon as possible (not less than 14 days notice is required). At this meeting the creditors vote to appoint a liquidator.
So, this is why it's called Creditors Voluntary Liquidation. It's very common, quick and a very powerful way to close a business and deal with things properly. You can get on with a new business or job, the company is closed, leases cancelled and all the staff made redundant.

What does a liquidator do?
He or she runs the liquidation, fills out all the forms, calls all meetings and investigates the conduct of the directors before the liquidation. He collects assets and turns them into cash. He then works out the debts and pays the creditors from the assets, if there were any.

What do we do?
The directors have to fill out a detailed questionnaire for the liquidator. They MUST provide all of the books and records to the liquidator. After this there is a creditors' meeting which a director must attend. After that, very little else usually.
Don't worry; you can be a director of another company! But always act properly, don't take chances and think you are a smarter than the law. You aren't, lots of people think they are and end up in trouble. Call us now, ask all the questions you want for free.

Compulsory Liquidation
This is a different type of liquidation. It is started by a creditor who has usually not been paid for supplies or services. He or she will ask the High Court to hear a "Petition" to wind the company up. If the Court agrees and or the debt is not paid; then a "hearing" is held in front of a High Court judge who then passes an order to wind the company up compulsorily.
This is a common tool for debt collecting; all the creditor has to do is have an overdue debt over £1500 and then ask a solicitor to start the winding up process.

Facing this threat? CALL NOW!
Tenable Solutions can always help. 0844 855 0 225.
We can use our huge knowledge of the law to stop this process, if you have a viable company.
Most often it is the tax man or the VAT that issues petitions, they simply want to get the taxes collected or stop you trading to stop the tax debt rising. Facing this threat? CALL NOW! 0844 855 0 225, ask to speak to Andy and stop the worry.

Members Voluntary Liquidation
This is used when a company has lots of assets but no further purpose. The company assets are liquidated and turned into cash; this is then paid to creditors and shareholders. In MVL every creditor has to get paid in full. Most often this is for rich companies with lots of assets.
Whatever problem you may face, we can help you NOW, but, only if you call us NOW 0844 855 0 225 and speak to Andy.

CVA
A CVA is similar to an IVA but for companies rather than individuals. It is a legal procedure that enables a company to make a binding agreement with its creditors and shareholders, describing how the company's debts and credit liabilities are to be managed, while allowing the company to trade.
see also liquidation

Call NOW on 0844 855 0 225 and ask to speak to Andy or email andy.walker@tenable-solutions.co.uk

http://www.tenable-solutions.co.uk/

CCJ's

2009-12-09T07:40:00.000-08:00

County Court Judgements (CCJ’s)

A County Court Judgement (more commonly known as CCJ) can be entered against you if you owe any sum of money. The person you owe money to (claimant) will contact the court or complete a “moneyclaim” online – once they have done this (there is a fee involved) a claim form will be sent out to the person who owes money (defendant) – it is imperative that this form is completed as soon as it is received. There are three options available on the claim form:-

1) Accept the full debt
2) Dispute all of the debt
3) Dispute part of the debt

The forms can be completed by hand or online by logging onto http://www.moneyclaim.gov.uk/ – there will be a specific password on your claim form which you will need to enter along with the claim number. Generally you have 14 days from the date of issue to respond (although it is possible to ask for 28 days by just completing the Acknowledgment of Service form if time is needed to prepare a defence).

The next steps are dependent on whether the debt is accepted or disputed. The steps are as follows:-

Accept the full debt

a) Pay the debt in full within 30 days
If the amount is paid direct to the “claimant” at this point then a “CCJ” will never be issued and this will have no effect on the “defendants” credit file. If the amount is not paid the “claimant” can then apply for judgment to be issued. Again if this is paid within 30 days then the CCJ will / can be removed and a certificate of satisfaction will be received. There is generally a small fee for this.
b) Pay the debt in full after 30 days
If the debt is paid in full after the 30 days then this will stay on the “defendants” credit file BUT they can request that the court marks it as “satisfied” – again there is a small fee for this and the “defendant” will receive a certificate of satisfaction.
c) Request to pay by instalments
If the Judgment has been ordered to be paid in full and the “defendant” cannot do this then they can apply for a Varied Order (form N245) – once completed this form gives an overview of the “defendants” financial position. It includes information such as income and expenditure, other debts and court fines etc. There is a section to make the offer of payment. The Varied Order is returned to the court who in turn send it the “claimant” for approval. If the “claimant” accepts the offer then the “defendant” will receive confirmation of this including the date the instalment should be paid and where the payment should be sent to. If the “claimant” declines the offer of payment the court will then look into the information that the “defendant” provided and then decide how much should be paid. At this point if the court decides an amount that the “defendant” does not feel able to pay they can ask the court to reconsider their decision but this must be done within sixteen days of the postmark of the Varied Order.

Dispute all of the debt / Dispute part of the debt

If the “defendant” disputes part or all of the debt the court will request that they attend a hearing. It is imperative at this point that the “defendant” fully prepares all of the evidence they have to enforce their reason for disputing the debt. Both the “claimant” and “defendant” should attend this hearing.

The Judge will then decide at this point, based on evidence provided what part of the debt will be payable. The steps will then be the same as above i.e. paying in full or paying by instalments

If nothing is done with regards to the CCJ then the “claimant” can request for a Warrant of Execution to be issued (please see separate section of this for full explanation).

The CCJ will be registered on the Register of Judgments, Orders and Fines and the majority of entries stay on the register for six full years. Organisations such as credit companies, bank & building societies use the information on the Register to decide whether to offer accounts or not. Having a CCJ can make it very difficult to obtain credit.

The Registered Trust is the place to check whether a Judgment has been issued against you or not. Generally there is a small cost to do this but it can be done online at http://www.registry-trust.org.uk/ or you can telephone them on 020 7380 0133. The information available is:-

· The amount and date of judgment
· The claim number
· The name of the court where judgment was issued

It can also be worthwhile checking your credit file. It is against the law for a company to check your personal credit file without your permission but this can easily be done online.

Limited Companies are different and anybody can check their credit file – it is public information. This is worthwhile thinking about if you wish to offer credit to any Limited Company (see separate section for information on how to do this).

Call NOW on 0844 855 0 225 and ask to speak to Andy or email andy.walker@tenable-solutions.co.uk

Winding-Up-Petition

2009-12-07T03:35:00.001-08:00

Winding-Up Petition

In effect any creditor owed over £750 can apply to the court for a Winding-Up Petition, in simple terms the petitioning creditor has had enough of false promises, broken payment agreements and bounced cheques and wishes to stop the company trading (compulsory liquidation). It is a costly action to pursue but very effective, especially if the company has valuable assets. Upon receipt of the petition the court will review the evidence supplied and decide whether the petitioning creditor has taken reasonable steps to collect the debt. In some cases the debtor may believe that a Winding-Up Petition has been issued unfairly and an “abuse of the court process”, legal advice must be sought at this point but it may be possible to have the petition rescinded if it is deemed by the court as an abuse. This would stop any action such as banks accounts being frozen or the petition being advertised. If the court does not believe it to be an abuse of the system then it will still stand and be advertised as normal.

The petitioning creditor has to allow seven full days after serving the petition on the registered office of the debtor company before it can be advertised, also prior to the High Court Hearing the petition must have been advertised in the London Gazette (Edinburgh Gazette for Scottish registered companies) and is usually done so seven days before.

Once the petition is advertised the bank will find out and will usually freeze the company’s bank account. This prevents any illegal actions of the Directors.

There are actions that can be taken to unfreeze the bank account but professional advice should always be sought on obtaining a “validation order”, of course this action is also costly as it incurs legal fees.

If the debtor does not pay the winding-Up Petition or if the petitioning creditor does not agree to any offers it generally leads to a winding-up order being issued and the Official Receiver or court appointed liquidator taking over the company.

At this stage the Directors will personally be investigated, this is to ensure that they did not trade whilst insolvent and acted properly according to their Director duties.

If the company is “wound up”, the Directors will be held personally liable for any debts signed for with a Personal Guarantee (PG).

Call NOW on 0844 855 0 225 and ask to speak to Andy or email andy.walker@tenable-solutions.co.uk

Insolvency

2009-12-04T01:28:00.000-08:00

Insolvency

You are not able to meet expenses as they become due for payment. You will also be Insolvent if your business assets are less than your debts outstanding. If you cannot find the cash to pay these debts insolvency will lead to bankruptcy.

Bankruptcy can apply to both individuals and sole traders that have given their personal guarantees for loans.

Liquidation and Winding Up applies to companies.

An IVA (Individual Voluntary Agreement) applies to individuals, sole-traders and partners. It normally lasts for 5yrs. An Insolvency Practitioner will calculate how much you can afford to repay each month. 75% of your creditors need to agree and once accepted by all parties payments can commence and creditors can take no further action unless the agreement is broken by you for non-payment. This is an alternative to Bankruptcy.

For more information on how we can help with these matters call Andy on 0844 855 0 225.

www.pure-financial-management.co.uk
www.tenable-business-support.co.uk
www.tenable-debt-collection.co.uk
www.tenable-solutions.co.uk
www.tenable-accountancy.co.uk

Bankruptcy

2009-12-03T01:33:00.000-08:00

Bankruptcy
This is always a last resort if you are in serious debt and no other debt solutions such as an IVA or debt management plan will help.

It protects you from your creditors and allows you to start afresh but you need to think about it carefully first.

A Statutory Demand is a formal document which can be issued to a debtor who has loan repayment arrears. This is the first step of the legal process a creditor may use to obtain a court order to get you to repay your debt.

If you do not repay your debts on time, your creditor may use the power of the courts to get you to settle the debt or start making reasonable payments.

A creditor has the option to try to bankrupt you, with a statutory demand being the first step of that process.

A Statutory Demand requires you to settle the outstanding debt by either:-

Pay monthly/weekly payments
A lump sum
Secure it against a property or other assets.

Within 18 days of receiving a Statuary Demand, you may apply to your local County Court to set it aside under the following circumstances:

The amount of money owed is in dispute
The debt is not payable now.
You are prepared to secure the debt to the creditors satisfaction under the creditors stated terms.
The amount owed is less than £750.
The statutory demand has been issued in error or does not comply with rules.
You can and are about to repay the debt.
You have a counterclaim of more than the money owed.

Ignoring or failing to comply with a Statutory Demand entitles the creditor to present a petition for bankruptcy 21 days from the date of issue.

Some companies use statutory demands as a scare tactic. They know that when someone is unable to repay a debt, they generally have more than one debt and that whoever shouts loudest tends to get paid first. However, you should always take a Statutory Demand seriously.

If you have received a Statutory Demand, or have been threatened with one, then please call us for advice. You will have more options to repay your creditors than stated in terms of the demand.

Call Now 0844 855 0 225 and ask for Andy.

see also bankruptcy FAQ.

Types of Statutory Demand
There are 3 types:-

Demand for a presently due debt, but not currently subject to a court order.
Demand for a presently due debt, which is subject to a court order.
Demand for a debt which is due some time in the future.

A Statutory Demand can only be made for an unsecured debt. If the creditor holds some security on the debt, then that value must be stated so the unsecured portion of the debt is known.

For debts due in the future, the creditor must give reasons as to why it is considered that you have no realistic chance of making payments when they fall due.

The demand is normally issued to you in person by the creditor. It may be posted provided there is proof that you are aware of the demand.

If you are not contactable, then the demand can be issued by advertisement, however the creditor requires a court order to allow this.

Failure to comply with a statutory demand is seen as proof you are not able to repay the debt and as such, the creditor is entitled to serve a bankruptcy petition to the court.

What to Do Next
If you have received a Statutory Demand, or have been threatened with one, then please Call Us for FREE advice. 0844 855 0 225

We can offer a solution that will be affordable to you and acceptable to your creditors.

Bankruptcy Petition
How does someone become bankrupt? Under UK Bankruptcy law, there are 3 ways.

The 3 routes to Bankruptcy.

Creditor application to the court (Creditor Petition).
Debtor application to the court, i.e. applying for your own bankruptcy (Debtor Petition).
IVA Supervisor application to the court in the case where the debtor has defaulted on the IVA and alternative arrangement can't be agreed.

Debtor's Petition.
Debtor Bankruptcy Petition form (6.27)

Statement of Affairs form (6.28)

Statement of Affairs Guidance
Petitioning one's own bankruptcy requires the debtor to complete a bankruptcy petition form (called form 6.27) and a statement of affairs form (called form 6.28).

Advice on Completing Statement of Affairs form
The Statement of Affairs form requires detailed information; including valuation of assets which may not be knonw without seeking professional help. Information here is in addition to the Official Statement of Affairs Guidance Leaflet as provided by the Insolvency Service.

Q1.14 does not required details of informal negotiation attempts with creditors.

Q1.15 requires details of impeding court action, including magistrate courts.

This section is only relevant to those self employed at some point in the past 2 years.

Section 3 is about value of assets. Approximate values only should be given, based on sale at auction, not what they we cost to replace from new.

Section 5 asks for details of past and present bank accounts. Any money in these accounts should be withdrawn prior to the bankruptcy application. These accounts will be frozen and provisions need to be made to allow for payment essential living expenses.

Section 6 is about employment and income. Include only regular income and that of other household members as this impacts how much is needed to maintain basic domestic needs. Include all state benefits entering the household, even though the claimant is not the person petitioning for bankruptcy.

Section 7 includes a standard list of household and personal outgoings. Details of all outgoings should be detailed in addition to the standard list.

Section 8 concerns property. Those applying for bankruptcy should be aware that in the case of owner-occupation, where the property is solely in spouse's name, then the applicant may have a claim on part of the property, therefore this will be considered as an asset in the bankruptcy. Specific professional advice should be sort on this matter.

Section 9 concerns property sold in the past 5 years. If it is considered that the asset was disposed of for a less than its true value, the Trustee has the option to reverse the transaction.

Section 10 covers details of dependant children, spouse/partner and other household members. This is to be taken into account by the Trustee when deciding value of income payment orders (payments from income the bankrupt is required to pay until discharge from bankruptcy.

Section 11 covers reasons for bankruptcy. Details of when difficulties were first experienced. Extreme care must to take in completing this section as instrumentation of the facts may lead to a Bankruptcy Restriction Order.

Application for court fee exception (ex160)
For residents of England and Wales, both forms are to be completed and presented to the most local court with bankruptcy jurisdiction. For those not living or domiciled in England or Wales, the forms are to be presented to the High Court in London.

Court fees of £185 and a deposit of £325 must be paid by the debtor at this point. Court fees can be waived when the debtor is on benefits and total income does not exceed £15,050 per year. Also, the fee can be waived if undue financial hardship can be proven. Fee wavier is by application via form ex160.

Depending on local practices a hearing may be immediate, later same day or by appointment at a later date.

The Court may refer the case to an Insolvency Practitioner in the case where the possibility of an IVA being a more appropriate course of action needs consideration.

Creditor's Petition
For a bankruptcy petition to be presented to the court, 3 conditions must be satisfied.

The debtor must be domiciled or resident in England/Wales or be active in business in England or Wales, on the date of the petition, or at any time in the previous 3 years.

The debt must be at least £750 to the creditor petitioning for bankruptcy.

The debtor must not have realistic ability to repay the debt, or refusing to pay the debt. This is proven by the debt being served with a statutory demand, which has not been set aside or complied to.

Failure to comply with a statutory demand, debts payment currently due/overdue.

Failure to comply with a statutory demand, debts payment due in the future.

A court order execution returns unsatisfied. (Eg bailiffs were not able to seize items of value)

Default in connection with an IVA
Two or more creditors may jointly petition.

Secured creditors may petition for the part of the debt that is not secured, or risk forfeiting their security.

The creditor's petition must state:

The amount owed, and if interest is owed how it has been calculated and the justification for this.

That the debt is for a liquidated sum payable now or at a specified future date and that the debtors have no realistic chance of making payment on time.

That the debt is unsecured.

If the petition is based upon a Statutory demand, then only that debt, plus interest accrued since the date of the demand was issued can be included.

If the petition is based upon an unsatisfied execution of a previous court order, then full details must be given including the value of any sum raised by the Court's sheriffs or Bailiffs. It is not good enough reason that the bailiffs visited the property and were unable to gain access; they would have to have been refused access.

IVA Supervisors' Petition
If you are currently within an IVA, your supervisor may petition the for your bankruptcy on the grounds that:

You supplied false or misleading information on which the arrangement is based.

You have failed to maintain the terms to the arrangement.

In this case, the IVA Supervisors can become the Trustee in the bankruptcy.

Issue of the Bankruptcy Petition
A Bankruptcy Petition must be served in person. A Bankruptcy order may still be prevented but you must give at least 7 days notice of your intention to oppose it. You may not use any reason for which a ruling has already been made against, unless there has been a change in circumstances.

What to Do Next
If you are considering petitioning for your own bankruptcy, then you must also consider whether a IVA is a better alternative for your circumstances. This is especially the case if you own your home or have other high value assets you want to keep.

CALL US for Immediate Free Advice. 0844 855 0 225

Bankruptcy Hearing
At a Bankruptcy Hearing, a district judge considers the bankruptcy petition to decide whether or not to make a bankruptcy order. Once a bankruptcy order is made, you are then officially bankrupt.

You (the debtor) and the Official Receiver attend the Bankruptcy Hearing. Creditors or their representatives can attend if they wish.

In order for the judge/court to make a bankruptcy order, it must be satisfied that the debt is proven and that either:-

The debtor can't repay the debt.

OR

In the case when payment is not yet due, that the debtor has not realistic chance of being able to repay the debt when it is due. When the petition is served by a creditor, they must prove that a corresponding Statutory Demand has been brought to your (the debtor's) attention.

If you have already repaid the debt in full, then the case will be dismissed, but you may still have to pay the creditors costs. It is more than £750, then pursuit of these costs could result in fresh bankruptcy proceedings.

Reasons why a Bankruptcy order may not be made
In the court's opinion, the creditor has refused to accept reasonable payment by instalment or a reasonable reduced full and final payment to settle the debt.

You have reduced the debt to under £750 in between date of petition and date of hearing.

An agreement is reached at the hearing for the repayment of the debt. When the bankruptcy order is made, there are normally 3 elements.

A bankruptcy period of 12 to 36 months.

Lump sums to be raised by the sale of assets (for example home, car).

See Your Assets & Bankruptcy for details.

Monthly Contributions from income.

Call NOW on 0844 855 0 225 and ask to speak to Andy or email andy.walker@tenable-solutions.co.uk

Tenable Solutions

2009-12-02T02:17:00.000-08:00

Tenable Solutions
Total Business Recovery & Turnaround
Expert Help When You Need It Most

We are dedicated to help businesses throughout the UK, to deal with and move on from situations in which they may face financial difficulties.

No one likes to think about the possibility of things going wrong, if and when the worst does happen, it`s reassuring to know that Tenable Solutions with its team of professionals are perfectly qualified to help you get through it.

Our team has a unique combination of commitment, professionalism, expertise and attention to detail and are only interested in you and your needs, not that of your creditors.
This means we can deliver a solution that will always be best suited to your specific needs and circumstances.

When you are under growing pressure from the Banks, HMRC, (Tax or Vat issues)Creditors and possible house repossession, it can sometimes seem as if there is no way out.
However, Tenable Solutions can show you many practical alternatives and options by drawing on our unrivalled knowledge and experience, carefully co-ordinating each separate element to deliver a fully integrated, timely and above all, effective solution.

There is very little help out there for businesses; Accountants and Solicitors often do not understand your needs and indeed in some cases, “company law”, so invariably you get steered down the unnecessary path of Insolvency.

We at Tenable Solutions are committed to working in your interests and no one elses, to protect your assets and minimize your liabilities.

We have a network of professional lawyers, barristers, Insolvency Practitioners, Accountants, High Court Sheriffs and business angels that assist us in orchestrating the best possible course of action. By drawing on our unrivalled knowledge and experience, you will find that a problem shared is often a problem solved and those continuing sleepless nights will go away.
As many of our clients have found, with Tenable Solutions on their side, not only has their business fully recovered but subsequently gone on to enjoy sustained success. We very much welcome the opportunity to assist and play a part in helping achieve the same for you.

Call NOW on 0844 855 0 225 and ask to speak to Andy or email andy.walker@tenable-solutions.co.uk

You Call Today, We Act Today, The Worry Stops Today.