True Story: Creditors Voluntary Liquidation / Individual Voluntary Arrangement by Janet Peacock
Earlier this year I received a telephone conversation from Fred asking for my help as he had just been told by his accountant that his company was insolvent. I asked for the company name so I could confirm the directors and shareholders details and said to Fred give me about 40 minutes and I will call you back. Before the call ended Fred advised me that he had already been in touch with another Insolvency practice in the area but after a face to face meeting with the gentleman he rang me as it just did not feel right.
I did the search via company’s house and established the director and shareholders details and whether or not there were any charges and scanned the last accounts filed.
I rang Fred back in 25 minutes, and asked him to explain the assets situation and to run through the liabilities that he had careful checked to see what personal guarantees he had, and there were a number, I said I would help him with those later.
After we discussed all the detail Fred asked for a face to face meeting which was no problem.
Fred said he was happy to proceed with putting the company into Liquidation – Creditors Voluntary Liquidation. Fred did say the demise of the company was because he just could not get extra funding.
But after going through things it became very clear that the company had been losing money for some time, and if further funding had been provided from anywhere all that would have happened is Fred would have merely made his personal guarantee greater as this company would still have gone insolvent simply further down the line. Fred’s wife Imogen also involved so simply lost both incomes over night.
When trying to get extra funding for your company prior to applying for it please please have a meeting with your accountant, make sure it is the right decision for you and the company.
Fred and Imogen will be fine, we have totalled their Personal Guarantees and other personal debts, and they have both managed to get employment and have entered an IVA – Individual Voluntary Arrangement with their creditors which Griffin & King assisted them with.
The names in this story have been changed to protect the individuals concerned.
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If you would like further information on business or personal debt solutions please contact Griffin & King Insolvency Practitioners on 01922 722205, and speak to Tim, Mark or Janet. You can also contact Janet by email on firstname.lastname@example.org, or by text or calling on 07545 806531.
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