A client had personal guarantee exposure of £6.5million after their business failed. He approached us with the threat of Bankruptcy looming over him.
The Client had lived with this spectre of debt since the 2008 crash and could see no way out.
He hadn’t heard from his Bank in several years and had hoped, in vain, that the debt had gone away.
After years of silence from the Bank, our client received a Statutory Demand ‘out of the blue’ from them – the start of the process, potentially leading to Bankruptcy.
If the Statutory Demand was ignored it could have resulted in a Creditor’s Bankruptcy Petition and the family home would have been under serious threat. The equity on the home of c£475,000 was at risk.
Bell & Company were instructed to negotiate a settlement of this debt, with strict time constraints imposed by the issuance of the Statutory Demand and any pending Bankruptcy Petition thereon.
With the assistance of a third party, the Client raised funds and was able to settle this debt at £175,000 on a Full & Final basis.
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