Archive for July, 2017

Will I lose my job if I go bankrupt?

Will I lose my job if I go bankrupt?


Declaring bankruptcy is not an easy step, but unfortunately, the stress of taking such a step doesn’t end when the papers are filed and the court grants your petition. Going bankrupt could have a substantial impact on your work, your home, and if you run a business, your company, assets and employees.

So, will you automatically lose your job when you go bankrupt?

Generally, the answer to this question is no. Most of the time you’re not legally obligated to tell your employer unless your employment contract says you must. However, there are exceptions to this rule.

If you do lose your job because of the bankruptcy and set out to find another, places that perform background checks like security firms, the police or the civil service might not want to employ you, or if they do they can stop you handling financial issues.

If you’re employed in a role handling financial matters, such as working in a bank, you may have to inform your employer if you go bankrupt. Your employer may have the right to end your employment if this is the case. If you work as an insolvency practitioner you would be banned from working in the role.

If you’re employed in regulated professions that require you to be licensed, going bankrupt could disqualify you from remaining in the professional body. This affects people like accountants, solicitors, as well as certain financial professions.

You’ll also be banned from working as a company director, charity trustee, judge, registrar, MOT examiner or credit licence holder until your bankruptcy comes to an end. However, if the official receiver extends your restrictions, you can’t hold office in local or national government, become a magistrate or school governor.

If you’re specialised to work in the gambling industry, your licence will automatically lapse. However, you may be able to reapply to the Gambling Commission for another.

If you’re not sure if your line of work would be affected by bankruptcy, check with your employer. This especially applies if you’re in the armed forces, you work in medicine, as a pub licensee, in cash handling, or you can check with the government to find out what happens if you’re self-employed.

Applying for bankruptcy is a tough choice, so you should arrange a consultation with specialist and impartial debt strategists. Bell & Company are easy to get in touch with and will endeavour to answer your questions fast and provide advice on what avenues are best suited to your needs.

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.

Insolvency – What to do when the worst happens

Insolvency - What to do when the worst happens

Insolvency – What to do when the worst happens:

If your business is facing insolvency, it can seem like there’s no way out. You may be kept up by anxiety over what’s going to happen to you, your staff, your professional reputation and your assets. Although the stress might be overwhelming, you have time to sit back and look at your options. Rushing into any official agreement can do you more harm than good in the long term, and you could end up paying more than you can comfortably afford. There is even a risk that insolvency could strip you of a license you need to work.

Alternative Solutions to Insolvency

You might be surprised to learn that there are other ways to resolve your situation before taking a formal insolvency route. Your creditors might even prefer that you face pre-insolvency. There is often more flexibility in negotiations, plus reduced costs on both sides. Ask our team what this entails.

Instead of dealing with an Insolvency Practitioner, who is legally obligated to get the best deal possible for the creditors chasing your debt, working with pre-insolvency consultants like Bell & Company mean they will try and get the best outcome for you. This means they’ll spend time understanding your circumstances as well as the particular challenges your business faces.

Our Work

Bell & Company’s strategies include reworking existing financial agreements within the company and with creditors, advising on the best ways to restructure your business to reduce costs, as well as exploring alternative cash streams. They stand between you and your creditors so that you can make the best decisions for your company without the stress of being hounded by collectors.

Pre-insolvency doesn’t have to mean the end of your business. Taking the right steps and considering what’s truly best for your company can often help get it back on track. Bell & Company’s track record in securing Full and Final Settlements can help satisfy creditors, allowing you to start fresh. These settlements mean that creditors still receive a sum from you, but they agree to accept less than the full debt and agree that they will not take action to recover the rest of the money from the debt.

It can be daunting to confront the full scope of your debt, but the best time to act is as soon as you notice there’s a problem with your business solvency. Pre-insolvency offers you more options and freedom than formal procedures, with expert consultants who will work for you and not your creditors.

Call Bell & Company on 0330 159 5820

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