Posts Tagged ‘personal Guarantee’

LIMITED COMPANY FAILING? – EXPOSURE?

Before we start this blog on ‘Limited Company Failing – What’s my personal Exposure?’, we are pleased to announce that we have settled for our client, Personal Guarantee at c25% of the amount Demanded by the Creditor. Our client was asset rich and when asked to comment he said “chuffed”.  A man of few words! 

If a company is approaching Insolvency, Directors can be faced with several issues on a personal level.

Firstly, there are fiduciary duties that an Insolvency Practitioner would need to consider in terms of the Directors conduct.  

To all intents and purposes, this blog is not considering these fiduciary matters. But concentrating solely on the monetary issues/exposure that could arise. These are: 

1) SECURITY OFFERED 

2) DIRECTOR’S LOAN ACCOUNT (DLA) 

3) WRONGFUL DIVIDENDS 

“Limited Company Failing – What’s my personal exposure and what should I do next?”

If your limited company is failing and one or more of the three points above apply to you (call Bell & Company!). 

It is imperative that you know your facts and we suggest the following as a basic plan of action:- 

  1. Do your own ‘housekeeping’. By this we mean look at your own Asset and Liability statement and be ruthless with it. To sum up, you should check your last couple of years of tax submissions to clarify your average income. 
  2. Ensure you have all the contractual documents required in respect of your PG’s etc. 
  3. Keep your management accounts for the business up to speed. This will particularly be relevant in terms of the fiduciary duty, but more importantly, establishing any correct DLA balance and or dividend exposure. 
  4. And finally, if any of the above are going to be ‘triggered’, determine the monetary amount and you need to settle these issues. 

 

Even if you do not call us, we implore you if you face such issues, to make sure you use third party representation.  

The reason for this is that you could try and do it yourself. However, you need to be fully versed with the facts and the tactics required.  Plus, you only get one chance…so do not mess it up! 

Are Directors personally liable for company debts?

Directors Personal Guarantee

Are Directors personally liable for company debts? To begin with, at the height of the business boom, banks were often very happy to provide loans to companies.

This agreement stated that in the case of the company being unable to repay these loans:

For instance, with Coronavirus and lockdown procedures:

What if I can’t pay?

Going straight to an Insolvency Practitioner, you will find they are legally obligated to get the best deal for your lenders.

What do I do next?

Most importantly, there are always options therefore you don’t have to face the stress and uncertainty of being liable for repayments by yourself.

In addition to the above, Bell & Company, as pre-insolvency consultants, specialise in helping people like you.

As an example, we have numerous success stories helping clients who were being pursued beyond aggressively by lenders and creditors start fresh.

To conclude this weeks blog, check out our latest webinar regarding the issues surrounding Personal Guarantees and the exposure to many SME business owners.

Especially now more than ever because of this current Coronavirus / COVID-19 pandemic.

Hosted by our Chairman Terry Bell who has provided:

CLICK HERE TO WATCH.

Are Directors personally liable for company debts

Business Planning During Coronavirus Pandemic

PART 1 OF COVID-19 PANDEMIC & PLANNING ABOVE…INCASE YOU MISSED IT.

Further to my video this morning – knowingly undertaken in the dark (my face for radio etc), I commented that we would give a quick insight into how we are trying to plan in the most uncertain of times = Covid-19. Our attitude is stay agile and get business planning during Coronavirus.

We as a management group are meeting every day via 3CX video conferencing at 7.30am, to keep up to speed on where we are as a business in today’s continually changing landscape.

Our current plan and daily review takes the following forms:

  1. Maximising Cash Flow – yes stating the bleeding obvious, but as my senior partner used to say ‘cash flow is the 8th wonder of the world’.

2. Review our marketing daily. Weekly and monthly plans have gone out the window. We have to be so sure we are on point with our message, especially when you of the type think the work we undertake, we will not be ghoulish in our messages.

Yes, we’re going into recession – but we fully respect all entrepreneurs struggling out there due to Covid-19. 

3. Being abreast of the facts at all times. Don’t look at all news feeds or it will do for you. I thoroughly recommend the FT and they will have a subscription deal on at the moment for sure. The FT continues to always offer succinct reliable reporting, such as Pilita Clark’s excellent piece from yesterday ‘No room for bullshit in this time of coronavirus’.

James Bell, Noel O’Hare & Angela Thorpe sign up please to any entry-level for the FT.

Also, a man who speaks a lot of sense is Luke Johnson who writes in The Sunday Times and is on twitter.

4. Working on different timeline and plans.

We have a one week, two week and five-week plan here during Covid-19. As things evolve/change we will look at things accordingly. As I said in the video piece I need this for my wee brain but we need to plan at least for some light at the end of the tunnel, as day to day existence is no good. We all need purpose here.

5. Ensure we are smarter in our work.

Lockdown gives us more opportunities to consider options, tactics and approached on cases.

6. Making sure and it’s cliché but…think outside the box.

For example, we have today developed another way to attack our work in Spain merely by taking some time out to consider the detail of what we do.

It will be a game-changer – hopefully.

7. Ensuring our team is motivated on a daily basis.

Remote working and managing bring their own challenges.

We have the benefit of an established team here. If you are alone or not able to talk to a peer or someone else conversant with the pressure so business before the COVID-19 landed. It’s tough out there as we all know so keep talking.

Tomorrow we are going to relay a few types of stances we should approach when faced with financial adversity. Business planning during Coronavirus is critically important as the regulations from the powers that be will change rapidly. Stay agile, stay on top.

As ever good luck and keep fighting

BAD DEBTS – CASH FLOW PROBLEMS

Bad debts can very often cause a perfect storm for any SME business owner, especially those which are totally unexpected i.e the client was ‘good for it’.

This will be a relatively short blog but what we will do is comment on our viewpoint on bad debts here as:

  1. We are at the front end of business issues and find ourselves receiving increasing enquiries across the board, and
  2. Being a business owner is a lonely carry-on and hopefully, this will show its not just you struggling with this issue.

Typically, bad debts arise in a range in differing forms:

The bad debt situation causes real knock-on problems across the board with:

Bad debt wallops cash flow as we all know. My senior partner, when training to be an accountant, said: “CASH FLOW IS THE 7TH WONDER OF THE WORLD”

He added even Robert Maxwell had cash flow, only it wasn’t his, as he pillaged the Mirror Group’s, Pension Fund.

If you are suffering from cash flow issues or looking to avoid customer issues, we would offer the practical tips in terms of assessing someone’s credit risk and or viability:

  1. Always use a credit agency on the person and or company,
  2. Push for PG’s, and
  3. A big one for us is what information is out there using:

So that’s this week’s blog…we would implore you, if you are suffering alone here, Bell & Company are here to help.

Personal Guarantee Settlement £175,000 – £32,000

We recently had a Personal Guarantee Settlement £175,000 – £32,000 for our client.

£175,000 Personal Guarantee called upon by the Bank and proceedings were underway.

If there was a Judgement secured, then our client’s personal assets, including home, could be under serious threat.

We met with the lender. Questioned the validity of the Personal Guarantee and started to negotiate with the legal proceedings held.

Eventually, after full representation the lender accepted full and final payment of £32,000.

Personal Guarantee Settlement £175,000 – £32,000.

HAPPY CLIENT!

If you or anyone you know is facing these issues, don’t hesitate to get in touch with our specialist team who will provide you with the best options available to your specific situation.

If our initial review indicates you have a sound case, and we agree to move forward together, then you are in remarkably safe hands with Bell & Company. We are proud to say that we have the highest success rate in our industry, a record we intend to keep.

Your first consultation with us is completely free and you are under no obligation to proceed with us. However, it involves a thorough financial review and a tactical assessment of your various alternatives. We can assure you, you will leave the meeting with a clear understanding of your options and possible outcomes.

Personal Guarantee Exposure – Savings of £300K

Building Industry Client with Personal Guarantee Exposure – Savings of £300K.

Clients, operating within the Building Industry, instructed Bell & Company regarding their Personal Guarantee Exposure of £350,000 – Savings of £300K.

At the time of instruction:

The health of our Clients and their partners had been affected.

This held serious consequences and so the case was sensitive because of this.

The subject Bank had been ruthless and their pursuit continual.

The Clients feared that they would lose the assets they had remaining which had equity associated

We came on record immediately upon appointment and soon after concluded the matter with a settlement payment of £50,000

Personal Guarantee Exposure – Savings of £300K

Call us today if you or anyone you know is experiencing financial issues | all our initial consultations are free of charge.

Your first consultation with us is completely free and you are under no obligation to proceed with us.

We are confident you will leave the meeting with a clear understanding of your options and possible outcomes.

If our initial review indicates you have a sound case, and we agree to move forward together, then you are in remarkably safe hands with Bell & Company.

We are proud to say that we have the highest success rate in our industry, a record we intend to keep.

Your steps to a debt-free future

Personal Guarantee – I’ve received a Statutory Demand!

 

Personal Guarantee – I’ve received a Statutory Demand!

A call on a Personal Guarantee can be stressful. Although, if managed with meaningful, professional engagement can be dealt with.

Statutory Demand?

If a Statutory Demand is ignored or the wrong representation is made, the situation can quickly deteriorate. Moreover, a Statutory Demand will lead to Bankruptcy proceedings. Bankruptcy Petitions will be issued within 18-21 days if the Statutory Demand is not engaged with.

Seeking correct advice

Owning assets in excess of the value of the Personal Guarantee will likely have to be entertained in full.

The key point in such cases is to minimise the costs, as the issue of a Bankruptcy Petition will see costs escalate very quickly. However, offers to resolve the situation can still be made but, need to be supported by full representation.

Alternatively, if you cannot honour the Personal Guarantee. Engagement coupled with correct professional advice is important. There are many instances of ‘professional advice’ given by advisors, who aren’t debt specialist.

Who to seek advice from?

Presentation is the key, as you don’t want to create any misconceptions at this stage. It’s all about engaging with the creditors and managing their expectations through effective communication.

Above all, we would suggest that you that nobody should rely on the ‘family friend/good old’ accountant or solicitor. This is a pressurized debt situation with defined time constraints. Strategy and its application are vital. In other words, seek debt strategy specialists

For further Information or guidance on Personal Guarantees, a Statutory Demand or Bankruptcy Petitions – Call Bell & Company on 0330 159 5830

 

Who the hell are Bell & Company?

 

Who the hell are Bell & Company?

At Bell & Company, we help People who are experiencing personal or business debt. We provided individual, tailored solutions specific to the individuals’ needs. Our advice is impartial, fair and always in the best interest of our clients.

Our team works with individuals and businesses across the UK and Ireland who need assistance with Personal Guarantees, Debt restructuring, Loan sales, unsustainable debt, mortgage regulated debt, and personal debt.

We specialise in a variety of debt areas, including:

We advise and assist in anyway way we can, to benefit our clients. We act on your behalf and present your case to lenders or acting third parties in a way that is representative of your current financial situation.

When you first contact us, you can arrange a free, no-obligation consultation with a member of our skilled debt strategy team.

During the initial consultation, we will discuss your current situation I, financial and personal. We will give you impartial advice tailored to your needs and guide you on the appropriate path to becoming debt free.

What we are not, makes us unique

Bell and Company are not Insolvency Practitioners, we are debt strategists. We provide you with solutions to your issues regarding personal or business debt, which are outside the territory of Insolvency Practitioners.

Rest assured, you will receive our honest opinion and the correct advice, which is always tailored to your situation, acting in the sole interest of you, our client.

For instance, the below case study required full in dept financial reviews, liaising with legal parties and also dealing directly with the Lender on the outstanding debt. We executed a timely and detailed strategy which delivered the best outcome for our client.

Case Study

A client with a personal guarantee of £6.5million in the UK came to us with the threat of Bankruptcy looming.

Since the 2008 crash, the Client had lived with this debt and saw no way out. He hadn’t heard from his Bank in several years and had hoped that the debt would one day go away.

After years with no word from the Bank, the Client received a Statutory Demand –potentially leading to Bankruptcy.

If the Statutory Demand was left ignored it would result in a Creditors Petition for Bankruptcy.

Bell & Company were instructed to negotiate a settlement of this debt with strict time constraints imposed by the issuance of the Statutory Demand.

With the assistance of a third party, the Client raised funds and was able to settle this debt for £200,000.

Above all, this meant that the pressure himself and his family felt from the debt was cleared.

Therefore, savings of £6,300,000 were achieved on the initial Bank demand for repayment.

Our client could restart his life without the burden of debt hanging over him and his family.

Contact us

Call 0330 159 5820 for a free consultation

For more information on our services, view our brochure.W

 

£6.5million Personal Guarantee exposure settled at £175,000

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.

For expert advice on Personal Guarantee exposure, or any material debt issue –  Call us now on 0330 159 5820 or read our brochure

Personal Guarantees are Evil

A Personal Guarantee is used by the lender or financial institution to secure a loan or lease.  A Personal Guarantee is used to protect the lenders and financial institutions when providing a loan or lease. When signed by the company director, a Personal Guarantee waives the limited liability of the company during the debt recovery stage…. Basically, it is a promise to pay the debt.

Securing loans or leases can be essential to the growth of any business. They will aid the growth of the business, the lender will not dictate how the loan is spent, they can be easy to access and currently, interest rates are low.

Although, all is not what it seems. In securing a business loan or lease the lender or financial institution will require that in the case that the loan cannot be repaid, whether that is that you fall into arrears, enter insolvency or have not followed the terms and conditions of the agreement, the lender or financial institution will secure the loan against your assets. To Secure the loan, most lenders or financial institution will utilise a Personal Guarantee.

Current climate

Although interest rates are low, and insolvency rates are lower in quarter 1 of 2019 than quarter 4 of 2018. There are still factors for concern for businesses, especially in todays climate.

Understanding different factors of Personal Guarantees

Secured or Unsecured – Personal guarantees can be secured or unsecured.

If unsecured, the lender can act quickly in securing via fixed or floating charge, or a fixed second charge on personal assets e.g. your family home

Are they enforceable? – YES.

Standard practice would be for the creditor to take the debtor to court.

Scary? Yes, Evil? Absolutely, End of the World? NO.

Informal arrangements can be made through negotiation with the creditor before legal action Is enforced. If informal arrangements cannot be made then, specialist advice and liaising with third parties such as Bell & Company are available options.

How can Bell & Company help?

Bell & Company are receiving more and more inquiries from people regarding PGs. We have honed our skillset and coupled that with a proactive strategic approach to assist people through the PG process.

  1. Lenders are more likely to engage with Intermediaries – We have experience in dealing with personal guarantees and lenders will recognise our submission. Our proposals and collation of data carry weight.
  2. We provide impartial advice – The advice we provide will always have your best interest in mind
  3. Provide a strategy– We recognise that each case is unique. We create strategies suited to each client’s wants and needs
  4. WE GET RESULTS.

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 saw 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.

For expert advice on Personal Guarantee exposure, or any material debt issue – Call us now on 0330 159 5820 or read our brochure

A Guide to a Directors Personal Guarantee

What is a personal guarantee? Why would I need one?

At the height of the business boom, banks frequently provided loans to companies. But, banks often required that the directors of these businesses sign an agreement, A Personal Guarantee. If the company is unable to repay these loans, the signer, or guarantor, would be personally responsible for the repayment.

A Personal Guarantee is only problematic if the business has breached the terms of agreement of the loan. Although, they have become more of an issue since the 2008 financial crash. Therefore, companies now find themselves in difficulty, and lenders are entitled to pursue bankruptcy against the guarantor if… the guarantor cannot repay the terms agreed when the original agreement was signed.

Limited company vs. sole traders/partnerships

Personal Guarantees are generally signed by directors of limited companies. Sole traders or those who work in a business partnership will often have been issued loans in their names. These loans can put individuals at risk of losing personal assets or even being declared bankrupt if repayment fails.

What if I can’t pay?

If you signed a Personal Guarantee for your limited company and you fail to keep up with repayments, your lenders will pursue you, to recover the outstanding debt. If you go straight to an Insolvency Practitioner, you will find they are legally obligated to try and get the best deal possible for your lenders. Moreover, if your bank account is overdrawn, your creditors can take legal action, and you could potentially be investigated.

What do I do next?

There are always options and you don’t have to face the stress and uncertainty of being liable for repayments alone.Bell & Company are pre-insolvency consultants who specialise in helping people affected by Personal Guarantees.

If a loan has been sold off by your original lenders to a ‘vulture’ fund, the ‘vulture’ fund will pursue debt repayment aggressively. However, Bell & Company’s involvement will help, when dealing with ‘vulture’ funds.

Call Bell & Company on 0330 159 5820. Alternatively, read our brochure or visit our website

Personal Guarantee – Now I’ve received a Statutory Demand!

Personal Guarantee

Personal Guarantee

A call on a personal guarantee can be very stressful but it may be managed with meaningful, professional engagement with the creditor.

If it is ignored or the wrong representation is made, often by ‘misplaced help’, then the situation can quickly deteriorate.

Statutory demand

Very often the creditor will issue a Statutory Demand, the precursor to potential Bankruptcy proceedings.

If a Statutory Demand is not engaged in any way within 21 days, the creditor can move to next step and a Bankruptcy Petition may be issued.

Stating the obvious, this brings everything into focus and everyone pays attention!

Seeking expert guidance

If you have more than enough assets to cover the personal guarantee, it should be entertained in full. The integral point in such a case is to minimise the costs, as the issuance of Petitions will see costs ‘mushroom’. Offers in this instance can still be made but need to be supported by full representation and detailed explanation, the presentation is crucial.

Alternatively, if you cannot honour the personal guarantee in full, engagement is as important coupled with correct professional advice.

This seems a very logical thing to say, but we have seen many instances of ‘professional advice’ given by an advisor, who does not have expertise in this niche field of work.

Reiterating presentation is the key as you don’t want to create any misconceptions at this stage. It’s all about engaging and managing the creditors’ expectations. Delivery of the information that will facilitate a decision is imperative.

We would respectfully suggest that you do not rely on the ‘family friend/good old’ accountant or solicitor here. This is a pressurized debt situation with defined time constraints and the strategy and its application is vital.

We are experts in this niche!  As ever we offer a free initial consultation, so we know that the cases we take on can be successful.

Call Bell & Company today on +44 2895217373.

The Benefits of Debt Strategists


THE BENEFITS OF DEBT STRATEGISTS

WHAT ARE DEBT STRATEGISTS

Debt strategist might sound like the job title of the bulge-bracket merchant banker in the Square Mile – but that’s not right. A good debt strategist is the vital problem solver every entrepreneur should have in their contact book.

But whether it is business collapse with a personal guarantee attached or household debts that have become unmanageable, a debt strategist can guide you through the minefield of competing claims. Creditors will try to claim there is no way to avoid a wholesale liquidation of assets.

THE NEED FOR DEBT STRATEGISTS

Working without an expert, debt situations can seem impossible. But with the right advice, there are simple steps that can minimise the long-term impact of a crisis.  The reality is that different types of debt can be treated in very different ways – accountants and lawyers have argued the technicalities through the court system for years so knowing having someone on your side who knows how the system works is crucial. We can untangle property debt on homes and break through the negative equity spiral and minimise our clients’ exposure.

WHO ARE THE EXPERT DEBT STRATEGISTS

Bell and Company has been working as specialist debt strategists for more than 25 years and we are the experts in this niche field. No matter how bad your individual situation its team will almost certainly have sat beside professional people and businessmen with worse problems. Our track record stands for our ability – we have saved our clients more than £100 million in settlements in the past 8 years. Why not avail of a free financial health check from our strategists.

HOW WE CAN HELP YOU

From the outset, the team will take a calm overview of both the debts being claimed and the assets available. The roadmap will take the situation from the absolute worst case and work back toward a settlement that will put a debtor in the best position they could reach. Key elements will include assessment of property debt and examination of potential negative equity resulting from the claim.

Bell and Company can take the strain of every business debt negotiation – long experience of such debt negotiations mean they can tackle lenders in a professional manner with a case that will convince creditors that the settlement offered is the best way forward.

THROUGH THICK AND THIN

But the team’s work does not stop there. No strategy which is not completely delivered is a good strategy so the conclusion of terms is the start of the implementation.  As Bell and Company have worked with more than 400 clients handling cases with millions of pounds of personal assets such as property at stake, it’s professionals are never taken by surprise by the twists and turns that always occur in any deal. That is why we offer a free initial consultation, so we know the cases we take on can be successful.

Able to react quickly to changes in circumstance or new developments, we will be able to predict the reaction of creditors and so manage their expectations.

ADVICE FOR ANYONE AND EVERYONE

In their first five years of existence, four in ten small businesses will cease trading. And looking across the wreckage of the British High Street where household name after household name has seen its shop sign consigned to the skip of history, it is pretty clear that even getting a business to scale is no defense against the disruptive nature of markets today.

Some entrepreneurs are lucky -or skillful – enough to see the writing on the wall and put the shutters up on a failed idea in an orderly manner- suppliers and staff paid, the stock sold and shareholders’ funds shared out.

Alas, it is not always the case in business or in family life that a shock to financial health is anticipated and handled calmly. Resist the all too common urge to freeze like a rabbit caught in headlights and contact our professionals. You do not have to face your debt crisis alone – call Bell & Company today on +44 2895 217 373

A Guide to Director’s Personal Guarantees

 

A Guide to Director’s Personal Guarantees

A Guide to Director’s Personal Guarantees

What is a personal guarantee? Why would I need one?

At the height of the business boom, banks were often very happy to provide loans to companies. They often required the directors of these businesses to sign an agreement, stating that in case of the company being unable to repay these loans, the signer, or guarantor, would be personally responsible for the repayment.

Although these agreements are not a problem as long as the business is repaying its loans under the agreements agreed by the lender, they have become more of an issue since the 2008 financial crash. Suddenly, companies have found themselves in difficulty, and lenders are entitled to pursue bankruptcy against the guarantor if they cannot repay the terms agreed when the original agreement was signed.

Limited company vs. sole traders/partnerships

Personal guarantees were generally only signed by directors of limited companies. Sole traders or those who work in a business partnership will often have been issued loans in their names.

Both kinds of loans put individuals at risk of losing assets or even being declared bankrupt if repayment fails.

What if I can’t pay?

If you signed a personal guarantee for your limited company and both the company and you fail to keep up with repayments, your lenders will pursue you to recover the outstanding debt. If you go straight to an Insolvency Practitioner, you will find they are legally obligated to try and get the best deal possible for your lenders.

Even if your bank account is overdrawn, your creditors can take legal action against you, and you could even find yourself under investigation.

What do I do next?

There are always options. You don’t have to face the stress and uncertainty of being liable for repayments by yourself. Bell & Company, as pre-insolvency consultants, specialise in helping people like you. If your loan has been sold off by your original lenders to a so-called ‘vulture’ fund who aggressively pursue debt repayment, Bell & Company’s involvement can help take some pressure and strain off your shoulders.

Bell & Company are fully informed of the most effective methods in order to get you the best possible outcome. They have numerous success stories, helping clients who were being pursued aggressively by lenders and creditors start fresh, without the threat of further repayments hanging over their head.

Contact Bell & Company here to see what they can do for you.

Personal Guarantee Exposure – Savings of £300k


Building Industry Client with Personal Guarantee Exposure

For more information on Personal Guarantee exposure read our recent blog below.

Read more here.

What Are Debt Strategists?

We Are UK & Ireland’s Leading Debt Strategists

Bell & Company are Debt Strategists and that simply means we develop a strategy to best eradicate a client’s debt. We are approached daily, by people with personal or busines debt and tailor our advice to their individual circumstances to ensure there is a realistic option for them.

Our Experience With Lenders

Given we deal with debt issues day in day out. We understand how most lenders operate, the processes which they use, which departments can assist and their level of empathy or aggression. With our expertise in this field we offer advice, tailored to circumstances and not generic sales talk.

Sometimes the news may not be what the client wants to hear but our mantra has always been honesty. The landscape we work in continually evolves. We keep abreast of changing attitudes and trends. We find that being honest about options and worst case scenarios allows clients to consider what strategy to implement and follow.

Who Are Our Clients?

Bell & Company work with stressed heavily indebted clients every day and we can empathise with your situation, understand the circumstances behind your situation and ultimately deal with any issues arising.  Debt is emotional, and appointing an intermediary to act on your behalf removes the emotion (often anger) from the situation allowing clarity of thought to prevail and more often than not this arises in an amicable settlement with your lender.

Bell & Company remove the emotion from the situation, plan the best strategy, implement the strategy and liaise with your lender to achieve the outcome required.

Our Specialist Services:

1.       Corporate Debt Strategies

Many business owners have non-performing loan related to business operations. Often these are back up by Personal Guarantees bringing personal stress and anxiety.  Bell & Company work with most UK and Northern Irish lenders to ensure Corporate Debt issues are amicably resolved maximising realistic returns for all parties involved.

In an increasing trend, we also negotiate with Equity Funds who have purchased default loan books from Lenders.

2.       Negative Equity Strategies 

Our team work with core UK, Northern Irish and Sub-Prime lending institutions to assist borrowers in Negative Equity. We understand the processes involved and which lenders can be approached when a property is in Negative Equity.

Bell & Company regularly achieve open market sales and successful shortfall negotiations saving clients tens to hundreds of thousands of pounds.

3.       Personal Insolvency 

Often a last resort. Personal Bankruptcy is an excellent tool provide client circumstances fit. It “clears the decks” and can allow someone to rebuild their life debt free. Our expert team will guide you through the process and answer queries regarding a lot of mis information about Bankruptcy. We are there every step of the process providing emotional support.

4.       Dispute Resolution / Consultancy

our directors have assisted many cases which require dispute resolution and a level head to achieve a result all parties agree with. We also can offer Business Consultancy to SMEs looking for any form of business advice including restructure, expansion, debt issues, non-paying debtors etc.

5.       European Property Advice

Our affiliate company EU Property Solutions offer a range of European Property Services including Negative Equity solutions, Overseas finance and Spanish Deposit Reclaims. Have a look at www.eupropertysolutions.com

 

If you or anyone you know wants to attend a free initial consultation to discuss your debt issues then please call our team today on 0330 159 5820.

Alternatively, read our E-brochure to view our services. 

Can I be considered personally liable or be pursued for the Debts of my Business?

A primary question that many will ask as their Business beings to fail is, “Can I be considered personally liable or be pursued for my  business debts?”

SOLE TRADERS/PARTNERSHIPS
Many people in business will operate as an individual, Sole Trader or Partnership.
If this has been your chosen trading style, it is most likely that any borrowings from Lenders to support your Business will have been issued either in your personal name or that of the Partnership. That being the case, you will no benefit from limited liability status and, resultantly, are liable to be pursued for the full amount of the monies borrowed.

Where a secured business facility that has been issued to an individual(s) Partnership debt falls into difficulty, the subject Lender will work through the sale of any security held in order to seek to reduce the balance owing. Once this has been completed however, the individual(s) are fully exposed and can be pursued for the crystallised shortfall, up to and including Bankruptcy in which case personal assets can be at risk.

It is imperative that anyone in this position prepares themselves pro-actively in order to maximise protection as otherwise, home and other assets of importance could be materially exposed.

LIMITED COMPANIES AND PERSONAL GUARANTEES
If you operate as a Limited Company, then it is likely that any business debt will be taken out in the Company name, i.e. an entirely separate entity from the individuals operating the business

HOWEVER
In the event that you have signed a Personal Guarantee(s) on any facility obtained for the benefit of the Company, for example on a business loan or property lease, and the Company is rendered incapable of meetings its obligations under the terms of the agreement then you, as a Guarantor, will be personally responsible.
If you don’t meet the payment schedule/terms and conditions of the agreement, then the Lender, whether a Bank, Landlord or other, will pursue you personally for the debt and will take whatever action required to recover the full amount due under the Personal Guarantee.

OVERDRAWN DIRECTOR’S LOAN ACCOUNT WHEN COMPANY IN LIQUIDATION

If there is an overdrawn Directors’ Loan Account when a Company goes into liquidation, then the Directors will be held personally liable for repaying that loan. The IP appointed on the liquidation will demand and pursue repayment on behalf of the Creditors.

The IP is fully entitled to take legal action against the Director(s) personally which could, once again, lead to Bankruptcy if repayment cannot be facilitated.

Having an overdrawn Director’s Loan Account in a liquidation situation can also lead to personal Revenue liabilities and investigation if over a certain level.

MOVING FORWARD 

The expert team of Corporate Debt Strategists here at Bell & Company can provide Impartial and tailored advice to suit your needs. Contact us today for a free consultation on 02895 217 373 or contact us  where we can quickly review your case and point out your options.

I am a company director of a limited company with personal Guarantee. How will this effect me?

I am a company director of a limited company with personal Guarantee. How will this effect me? More often than not where a Lender is offering loan facilities to a Company, they will, by way of security, require a Personal Guarantee to be offered by the Director(s) of same Company. This will essentially provide the Lender with the reassurance that, even in the event of the Company becoming insolvent, they can pursue the Directors directly and personally in relation to monies owing. It provides them with an extra layer of cover so to speak…

Directors (especially in the past) will have seen this as a risk worth taking, particularly as it could massively influence the Lender’s decision as to whether to approve/deny a loan application submitted on behalf of the Company. This is all very well when the Company is performing however where a Company begins to experience financial issues/is showing signs of being in a position of financial distress, Personal Guarantees can have serious and hard hitting consequences for the obligated Director(s).

In some instances, Personal Guarantees will be capped at a specific amount and the amount will have been influenced by the overall, net worth of the Director(s) at that time. In other instances however, Guarantees will be somewhat open ended and will be as wide as to cover all debts owing by the Company to the subject lender. Negotiating in relation to a Personal Guarantee is most definitely possible, when broached in the correct way and with the right presentation, however is not straightforward.

The subject lender will analyse the position in an in-depth manner and conduct a high level of due diligence, often engaging specialist professionals, in order to determine what can be recovered thus it is imperative that positioning and approach is concise and watertight. Creditors will look at various aspects of the Director(s) position, not least, to include asset/monetary position and a number of documents, reports and evidence will be required to be submitted in order to support any submissions made. There are central in the context of negotiations.

Once again, the importance of obtaining the correct advices with regards how to communicate/approach must be stressed here as this can very often mean the difference between losing and retaining livelihood/home etc. The importance of being pro-active cannot be emphasised enough as failure to do so will often result in Judgment/Statutory Demand, both of which can be avoided when the correct steps are taken.

To conclude, we would state as follows:

Whilst Personal Guarantees do not very often impact/feature in the thought process of Directors at the time of loan application and where the Company is performing, other than to be considered the determining factor re sanctioning/rejection, they can have serious, personal consequences where the Company becomes insolvent and the debt is called in. The Lender is entitled to explore all surrounding property, the equity therein and the financial well-being of the individual and can pursue up to and including Bankruptcy in which event there is often a lot at risk.

This can be avoided in its entirety if the correct line of communications are adopted from the outset and with the right advice, guidance and representation. There are significant savings to be achieved if handled in the correct way – We have achieved savings at 0.6% of overall debt owing however each case will be circumstance dependent. Why take the risk caused by delay…?

Act now and protect what is important.

Personal & Cross Company Guarantees

Savings of £1,500,000.00 & Settlement at 4.2% of Borrowings

-A local family, working in the construction industry, attended our offices, utterly distraught at the level of debt at which they were exposed by way of both Personal & Cross Company Guarantees

-Their original borrowings had been obtained via their Limited Company however same Company had been liquidated and there had been insufficient assets to cover the liabilities

-As a result, our Clients’ Personal Guarantees were called in as well as the Cross Company Guarantees for the Company they were currently dependent on for trading

-They were personally exposed to the amount of £1.2m

-Their homes, which had equity therein, were at risk and the lender had initiated aggressive  action seeking Judgment against our Clients

-The services of Bell & Company were promptly engaged and immediate contact was made with both the relevant lender and their instructed Solicitor

-Within a period of a mere several months, a full & final settlement agreement had been reached at £50,000

-This resulted then in savings of £1,150,000

-Our Clients’ homes were secure & they were free to carry on with their new business without any further pursuit