Mr M, from Liverpool
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Mr M was the sole director of a building company we will refer to as A Limited. The company had traded successfully for 14 years and had a healthy portfolio of satisfied clients.
Within this unstable economic downturn, the construction industry has been one of the worst hit sectors. As a result A Limited's turnover dramatically decreased and the company started to struggle financially. To make matters worse, A Limited had to write off a book debt of £20,000 when the company owing was wound up. Mr M attempted to keep A Limited trading by way of personal borrowings using his credit cards. Eventually trading became impossible and A Limited was clearly insolvent. Mr M was experiencing severe pressure from both his personal and the company's creditors. A Limited had
liabilities of approx £70,000 of which £25,000 was personally guaranteed and Mr M also had personal liabilities of approx £20,000. Mr M didn't know where to turn as the debts were mounting up and the fear of the unknown was taking its toll.
After speaking to his accountant Mr M was referred to Oakdale Insolvency Services. After careful consideration we advised A Limited to cease trading as the company was no longer a viable operation. We advised that A Limited be liquidated. This meant that all liabilities (apart from the personal guarantee) would effectively be written off and the creditor pressure would stop.
With a huge weight lifted from his shoulders, Mr M found an income as a self employed sub contractor. Although he now had money to support his family, it wasn't enough to service the contractual obligations given to his personal creditors and the guarantee given on behalf of the company.
Whilst the liquidation was taking place, we proceeded to address Mr M's personal situation. Firstly, we had the interest on the personal credit cards frozen and then we negotiated more affordable monthly payment terms. We also negotiated affordable repayment terms on the personal guarantee with no interest.
As a result of our assistance A Limited was efficiently liquidated and Mr M's household expenditure including the terms agreed with his creditors has been reduced from £2,700 per month to an affordable and comfortable £1,300 per month.
Mr and Mrs O, from Durham
Mr O was employed as a joiner and Mrs O worked part time as a hairdresser. Mr O had loans and credit card borrowings of approx £30,000 of which he could comfortably afford the contractual monthly payments. The couple also owned their own home which was worth £130,000 and had a mortgage of £135,000. The home was in negative equity as a result of the recent slump in property prices.
Unfortunately after 11 years of employment, Mr O was made redundant and as a result could not meet the demands from his creditors. Neither of them had any disposable income and family members kindly offered to help out financially when they could.
As you can imagine Mr and Mrs O were severely distressed. They assumed the worst and thought that they may lose their home. After speaking to a friend they were referred to Oakdale Insolvency Services.
After an in depth assessment of their personal circumstances we identified the most appropriate solution to their financial predicament. In this particular case it was for Mr O to declare him bankrupt. We effectively held his hand through the whole process and our service included corresponding with creditors, preparing court documentation, attending court and attending the Official Receivers meeting.
Whilst assisting Mr O during the bankruptcy process we also made sure the family home was safeguarded. Because the property was in negative equity, Mr O`s equitable interest was effectively worthless. This meant with our assistance Mrs O could purchase this equitable interest from the Official Receiver for £1 and the family could retain ownership of their home.
All the loans and credit card debts were written off as part of the bankruptcy and the property was safeguarded. Mr and Mrs O's stress had been alleviated and they were able to return to enjoying their lives.
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