| T O P I C R E V I E W |
| nicola123 |
Posted - 19 June 2008 : 15:48:33
My partner has just phoned me in a panic. A debt collecting agency called him a few weeks ago and he made a credit card payment. They phoned him back to say the payment didn't go through - so he called his bank while still on the phone to the agency who said there was sufficient funds. The agency said they'd try to take the funds later but would call him if any problems. He's just received a call from them yesterday and called them back today. They say that payment didn't go through and they've been unable to contact him. If he doesn't pay £3,500 by 3pm tomorrow they will start the process of making him bankrupt on Monday (on instructions from the creditor). My partner can't be bankrupt or he'll lose his job - but he can't afford the £3,500 by tomorrow either. Any advice please? He's up to his eyes in work and can't take time off to sort this out :-(
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| 15 L A T E S T R E P L I E S (Newest First) |
| pix1 |
Posted - 30 August 2008 : 10:55:22
Hello,
It may be that the letter (it was a letter, not a phone call, wasn't it?) stating that the debt company were going to take your partner to court was simply a threat to induce action on his part. I used to get letter after letter threatening court action and ccj's. i only ended up with one ccj and went BR soon afterwards and the amount concerned was then written off. My guess is that your partner will not be taken to court just yet and that he has time to negotiate a satisfactory monthly sum to pay the creditor - this depends on the debt amount which I don't think you have stated in this thread. Obviously, the lower the amount the less your partner should pay per month. If it is over £750 (min. to make you BR, anyway) but under £5000 I would suggest he sohuld offer no more than £30 per month to be reveiwed at a date in the future.
Debt companies love to put the pressure on and the people who send the letters (if they are not automaitcally generated by computer) are under pressure themseelves to put the debtor under pressure!
I think no BR for your partner and probably no ccj unless he does not set up any kind of payment arrangement (better, by the way, to request a payment booklet or plastic card from the debt collector as this will take a couple of weeks t o send and will not leave you open to bank problems of dd's being missed, etc. |
| nicola123 |
Posted - 29 August 2008 : 18:33:20
Just an update - thanks to your help my partner contacted England, Jackman and Spacey - and feels that the help/assistance they are giving him is great. In the meantime, my partner said he saw on your website templates to show you what to write to your creditors when they start chasing you for money (I appear to have an old debt which I don't know what for and have just received a letter from a company called Lovells who say they purchased the debt from Lloyds). Is there particular wording you should use when asking to see a copy of the original agreement you signed? thanks Nicola :-) |
| JulianDonnelly |
Posted - 21 June 2008 : 14:22:58
Hi Melanie,
Thanks for getting us back on topic. It's easy to go off at a tangent when a thread becomes this long!
Regards
Julian Donnelly
Spokesperson for www.Bankruptcyhelp.org.uk |
| melanie_giles |
Posted - 21 June 2008 : 00:07:43
We may be missing the point here. The corporation tax is owed by the company and not your partner personally, and has to be paid by the company. If the company cannot pay, then it may have to cease trading and enter liquidation proceedings. The implication of this will be that your partner will have an unpaid directors loan for the money taken out to fund your house deposit, and the liquidator of the company will need it to be repaid - which puts pressure on your partner personally.
I suggest advice from an insolvency practitioner who can talk to you about the company and your personal affairs would be a sensible first step.
For an informal chat about any financial difficulties, or advice as to the options available, I can be contacted via my website - www.melaniegiles.com |
| JulianDonnelly |
Posted - 20 June 2008 : 12:07:58
Glad we could help :)
Regards
Julian Donnelly
Spokesperson for www.Bankruptcyhelp.org.uk |
| nicola123 |
Posted - 20 June 2008 : 12:05:22
Thank you Julian and Suzanne. I'll speak to my partner and get him to do as you suggest. I can't believe the support that i'm getting from you guys - what a wonderful forum. Our stress levels are being severely minimised thanks to your input. Nicola xxxx |
| JulianDonnelly |
Posted - 20 June 2008 : 11:40:08
Hi Nicola,
Interestingly enough, HMRC are one of the most cooperative creditors out there. As long as you are talking to them, they will hold off legal action for as long as possible. Brett England of england, Jackman & Spacey does excellent work with HMRC, as does Paul Johns of Reviva. You can contact them through they websites (links on the experts page).
Regards
Julian Donnelly
Spokesperson for www.Bankruptcyhelp.org.uk |
| Suzanne |
Posted - 20 June 2008 : 11:37:52
Inland Revenue do recognise IVA's so they must write some debt off, and probably quite a lot in the grand scheme of things.
I don't think prison would be likley for £40k, it's not really that big an amount when you think of other cases that have been in the news.
I do think he should get some good advice sooner rather than later as the Inland Revenue are very pro Bankruptcy and seem to use it to clear cases from their desk periodically.
Suzanne Stocker
Bankruptcy Manager
Jones Giles Ltd
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| nicola123 |
Posted - 20 June 2008 : 11:30:16
Thanks Suzanne. I'm sensing we're really in a pickle now. Does the tax man ever write off a debt? or will my partner have to repay every penny? Do they still send debtors to prison? is it open prison if so? Nicola xx |
| Suzanne |
Posted - 20 June 2008 : 11:26:57
Nicola
I think he needs to go and see someone else to discuss his options with this debt. The best type of advice is that from an Insolvency Practitioner in this case, as they would have a better understanding of the tax issues as well as the debt issues.
Don't allow anyone to fob you off with an 'advisor' or 'councellor', get an appointment with the IP themselves.
Good luck, and I will follow this one to see the outcome.
Suzanne Stocker
Bankruptcy Manager
Jones Giles Ltd
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| nicola123 |
Posted - 20 June 2008 : 11:13:53
Hi Suzanne - I don't think the advisor gave him any constructive advice regarding the corporation tax owing - other than to pay it back (which he can't) - he owes £40,000 in corporation tax :-( Kind regards Nicola x |
| Suzanne |
Posted - 20 June 2008 : 11:11:14
Nicola123
That is a tricky one. What did the previous IP suggest regarding the Corporation Tax? How much is it?
Suzanne Stocker
Bankruptcy Manager
Jones Giles Ltd
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| nicola123 |
Posted - 20 June 2008 : 11:02:08
When I say all our money problems started after the council refused to pay a contract - I mean this is when things really went pear shaped - since my partner had money issues prior to this - this just blew us out of the water!! Nicola x |
| nicola123 |
Posted - 20 June 2008 : 10:22:04
Hi Suzanne
He's a management consultant and offers business advice to companies as well as running various change management programmes and/or projects for them. He took financial advice last year and pulled together a list of creditors and went through the process of income/expenditure and made offers to all creditors to avoid bankruptcy/IVA. He would have preferred to go the IVA route but because he owes corporation tax (he took the money out of the company and hasn't been able to put it back yet) he scared that if it goes official the tax man will accuse him of fraudently taking out money of the company and he may have to go to prison :-( All our money problems started when he did a contract with a county council for several months - who then refused to pay the bill leaving £25K owing to him. Kind regards, Nicola x |
| Suzanne |
Posted - 20 June 2008 : 09:20:57
nicola123
What is your partners job that he feels it may be at risk on bankruptcy?
Have you taken any formal insolvency advice as there may be other options open to you such as a Debt Management Plan or Individual Voluntary Arrangement. Or you may even be able to refinance and have a fresh start.
There are lots of people you can get advice from and many Insolvency Practitioners will give you their time for free in order to discuss your options.
Suzanne Stocker
Bankruptcy Manager
Jones Giles Ltd
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