I recently had a call from Sue, who was director of a company with financial difficulties. I was aware that Sue had seen two insolvency practitioners before contacting G&K.
I met Sue who introduced me to Eileen, the bookkeeper to help with any financial questions. Sue explained the background to the problems and with Eileen’s help went through the assets and liabilities of the company. I was careful to quiz the director whether personal guarantees had been provided. There were quite a few.
The company was clearly insolvent, had no future and I recommended should enter Creditors Voluntary Liquidation as soon as possible.
Then I asked Sue if we could discuss her personal financial position. Sue looked surprised and said “but none of the other IP’s went into this?” “but isn’t this what you’re most worried about?” I responded.
Sue agreed and she went on to tell me about the negative equity she had in her house, credit card and personal unsecured loans, in addition to those debts that had been personally guaranteed through the company. The total of Sue’s unsecured debt came to around £90,000. Sue had very little income, no prospects of this changing and she and her partner were struggling to keep up the mortgage payments together with all the unsecured loan payments. My recommendation was that Sue investigate the bankruptcy process which would help with all the unsecured debt and then concentrate on keeping the mortgage payments up to date.
Sue was mighty relieved; she could now see a way through her debt problems. Needless to say, we were appointed to deal with the liquidation of the company.
What to do if you experience financial difficulties
Griffin & King Insolvency Practitioners are Business Rescue Specialists and offer no-nonsense, clear advice to business owners and individuals who are in financial difficulties.
If you hear of anyone with financial difficulties please ask them to call us on 01922 722205 ask to speak with Tim, Mark, Emma or Janet or one of the team. Our initial meeting is always free and I’m sure we can help! Take a look at our testimonials and see how we have helped others.