Archive for June, 2019

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

Fill in your contact details for free advice:

By accepting you agree to Bell & Company contacting you to discuss debt solutions