85% Debt Reduction: The Strategy that Secured a £90,000 Settlement and Ended the Threat of Bankruptcy 

A Client in Crisis  

The construction industry remains one of the hardest-hit sectors for company insolvencies, with 3,973 firms becoming insolvent in the 12 months to July 2025. This represents 17% of all cases where the industry was identified – the highest share of any sector. 

Cash-flow pressures, rising costs, and delayed payments often leave construction businesses particularly vulnerable. Many of these cases sadly end in liquidation, with valuable assets lost and livelihoods affected.  

Our client’s construction business had failed, ending 10 years of hard work and leaving him with a feeling of emptiness and isolation. After all it was his livelihood – a business he had built from the ground up. The reason his financial situation took a downturn wasn’t through neglect or incompetence, but a series of unforeseen circumstances that led to a crippling debt of over £600,000, which the client was unable to repay.  

What made matters worse was that the client had been struggling in silence for a long time. Creditors were unaware of the company’s insolvent position, as he had avoided raising the alarm – fearful that doing so would “poke the bear” and cause the security on his loans to be called in prematurely. Like many business owners facing financial distress, he had buried his head in the sand, hoping for a turnaround that never came. 

But the biggest worry wasn’t the debt – it was the family home. 

With the creditor closing in on a £600,000 personal guarantee, our client feared the worst – the loss of his family home. Facing the threat of a forced sale, he felt isolated, terrified, and out of options. At one point, he admitted, he was ready to hand over the keys and walk away. 

That’s when he turned to us – with one urgent goal: to protect his assets, avoid bankruptcy, and save the family home.  

The Strategic Defence  

From the moment we reviewed this particular case, we knew that a simple settlement wasn’t going to be enough. This case required a robust, tailored defence – and fast! Working against the clock, our team took a deep dive into our client’s situation and immediately identified a key issue – the valuation of their home. 

The lender’s recovery team was initially operating on a valuation that would have demanded a settlement far higher than the client could afford. We had to prove that figure was unrealistic. To do so, we adopted a strategic, evidence-based approach – but just as crucially, the creditor engaged constructively throughout.  

Recognising that our proposals were commercially viable and underpinned by sound legal reasoning, the creditor took a pragmatic approach and worked with us to keep the process moving to avoid unnecessary delays. 

As a result, we were able to: 

• Demonstrate that accepting a lower settlement was more commercially viable than the cost and delay of pursuing bankruptcy and enforcement. 

• Use our deep understanding of insolvency law to strategically and legally minimise the client’s exposed equity position, directly challenging the inflated valuation. 

• Work collaboratively with the creditor, whose willingness to engage helped ensure the matter was resolved efficiently – with a full and final settlement reached within just five months of our appointment. 

Avoiding Catastrophe and Exceeding Expectations 

We understand deeply that debt often isn’t just a business loss, but a personal one. In this case, our client had an original debt amount of £600,000 relating to a personal guaranteed exposure following their business failure. 

Initially, we aimed to negotiate a 70% reduction – a significant saving by any measure. But our team overdelivered. We secured a life-changing 85% reduction, with the creditor agreeing to a Full & Final Settlement of just £90,000. That’s a saving of £510,000, and the difference between bankruptcy and a second chance. 

Crucially, the threat of bankruptcy was eliminated, and our client’s family home was safe. 

The client’s relief was palpable. They recalled the moment they received the final confirmation: ‘I was ready to lose everything, but this result exceeded every expectation. The weight lifted was immeasurable.’ 

How We Can Help You 

If you’re faced with the threat of losing your home due to personal guarantees, you don’t have to face this threat alone. Our team understands what matters most and can help protect it. We can offer a commercial solution through: 

• Taking a proactive approach to ensure we get ahead of the issue 

• Having a deep knowledge of insolvency law to ensure you’re protected from all angles 

• Removing the stress and taking full responsibility for all communication with the creditor 

Don’t allow your business issues to cost you your family’s future. At Bell & Company, we specialise in providing a strategic defence to protect your assets. 

Contact us confidentially today to discuss your personal guarantee and explore your path to settlement and peace of mind. 

📞 Call us today: 0330 159 5820 
📧 Email us: hello@bellcomp.co.uk 

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