Overdrawn Directors’ Loan Account – AVOIDING Bankruptcy.

We’re embracing positivity and remembering that every business debt-related challenge has a solution. This recent success story highlights our dedication to achieving positive results, even in the most challenging financial circumstances.

Case Overview

Our client and his wife had been pursued for an Overdrawn Directors’ Loan account totalling c£275,000 since the liquidation of their business in July 2018. The case was particularly complex, involving multiple parties and prolonged litigation. The liquidators had initially made little progress, leading them to sell the debt to the litigation funder, who subsequently secured a Judgment in November 2022.

Despite attempts at mediation involving solicitors, no resolution was reached, leading the litigation funder to initiate bankruptcy proceedings against the client.

Our Approach

Faced with the imminent threat of bankruptcy and its severe consequences, the clients sought assistance from our experienced team in early 2023.

Given the situation’s urgency, we swiftly secured a 6-month Moratorium, halting the proceedings and providing a window for negotiation with the litigants.

We provided comprehensive legal representation, presenting a transparent assessment of our client’s financial situation. Through skilful negotiation, we successfully convinced the litigants to adopt a commercial and pragmatic approach.

Our efforts culminated in a favourable settlement of £150,000, representing a significant saving of £125,000 compared to the original debt. Additionally, we secured a 14-month payment plan for our clients, providing them with a manageable path to financial recovery.

The Outcome

At Bell & Company, we pride ourselves on our ability to navigate complex negotiations and deliver results that protect our clients’ interests. Browse our TrustPilot reviews here and see how we’ve helped others.

If you or someone you know is facing financial challenges, we are here to help, don’t navigate these complex situations alone.

We provide tailored solutions that protect your interests and help you achieve the best possible outcome. Contact us today for a free case review on 0330 159 5820 or email us at [email protected]