How We Turned a £300,000 Debt and the Threat of Bankruptcy into a £30,000 Settlement 

The Fading Family Legacy 

Our clients – a husband and wife who operated a builders’ merchant specialising in providing plastic components for the construction industry – came to us with a serious problem. Open since 1991, their family-run business was under threat from mounting debts. The market turbulence that defined recent years hit them hard. Like many, they could no longer afford to buy stock, forcing them to delay repayments – a clear sign of a business struggling for air. 

They weren’t alone. Industry data shows that 12 to 15 builders’ merchants nationwide slip into insolvency each month, with construction overall accounting for a staggering 17% of all UK business failures in the year to mid-2025. This was a sector in freefall – and our client’s business was teetering on the edge. 

While our clients faced the emotional turmoil of letting go of a business they had poured their lives into, they turned to Bell & Company for help with personal guarantee exposure of £300,000. The business may have closed, but the debt remained – a threat hanging over their personal lives. 

Protecting The Family’s Assets 

When the creditor moved to enforce the guarantee, our clients were staring directly at personal bankruptcy. Their primary asset, the family home, was valued at £600,000 with £440,000 equity, and a pending inheritance added further risk. This combination made them a prime target for creditors seeking aggressive recovery. 

Our client’s goals were clear and urgent: 

• Resolve the personal guarantees without undue cost. 

• Avoid personal bankruptcy and the consequences it would bring to their life. 

• Protect the equity in their home, a critical personal asset that needed safeguarding. 

Negotiating A Commercial Solution 

With £440,000 of equity on the line, the creditor viewed recovery as straightforward. Our role at Bell & Company was to demonstrate that pursuing bankruptcy would be commercially unwise, and to guide discussions toward a solution that made financial sense for all parties. 

We presented a detailed balance sheet and a compelling argument focused on speed and guaranteed return: 

1. Shared Proceeds: Any forced sale of the home would require sharing the proceeds among all creditors, meaning the guarantee holder would recover only a fraction of their debt. 

2. Formal Costs & Delays: Formal bankruptcy proceedings would incur significant costs, including trustee fees and legal expenses, drastically reducing any eventual payout. A drawn-out process could take 12–18 months to resolve. 

3. Guaranteed Immediate Cash: We positioned our offer – a Full & Final Settlement – not as a concession, but as a superior business choice. It offered immediate, guaranteed cash that significantly exceeded what a costly, delayed, and uncertain bankruptcy process could deliver. 

The Outcome: 90% Saving & Total Security 

Through meticulous negotiations, our team secured a £30,000 settlement, delivering a life-changing 90% reduction for our clients. More importantly, bankruptcy was avoided, and their family home, the very asset they feared losing most – was protected. 

The joint personal guarantee was permanently cleared, giving the family a fresh start and peace of mind. 

Our clients described the outcome as “absolutely unbelievable, not even for a second did we think all of this would be possible.” After the collapse of a 30-year business, they could finally look forward to rebuilding their future with security and confidence. 

Facing Insolvency? Your Confidential Next Steps 

We’ve seen the impact of turbulent markets firsthand, helping hundreds of business directors navigate challenges including personal guarantees, bankruptcy, and HMRC disputes. If you’re facing a seemingly impossible situation, we can help. 

Your first call is completely confidential. We understand the sensitivity around personal guarantees and family assets, and we begin with a discreet, no-obligation assessment of your exposure. We work with creditors every day, protecting the things that matters most – including your family home. 

Call us today for a confidential conversation and discover how we can help you safeguard your future. 

📞 0330 159 5820 or 📧 hello@bellcomp.co.uk