winding up petition

FINANCE

22
Mar

Tips for Financially Troubled Comapnies

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1. Keep Your PAYE & VATE Paid To Date. First rule for the owner of any financially struggling business is to make sure you pay all your PAYE taxes on time, especially those deducted from employees’ wages. Even if you are a sole trader or a limited liability company, the Inland Revenue can hold you personally liable for these taxes plus penalties if they’re not paid. And even if the business goes bankrupt or in the case of a limited company, you could personally and legally be liable to pay them.
 
2. Cash Flow Problems. Cash flow problems are one of the biggest causes of business failure. When you know you don’t have enough sales income coming in to pay the bills that are due, slow your outgoings immediately by cutting expenses to the bone. If you don’t learn to balance your income –V- expenditure you will most certainly be heading for the bankruptcy courts. You must prepare a short-term cash projection and plan for your immediate needs. Make a list of the monies owed to you, and collect as much of it as possible. Pay the necessary items like taxes and overhead costs, but delay paying other bills by working with suppliers and other creditors, talk to these people use your relationship to work out a payment plan.
 
3. Lying About Your Business Debts. I have seen people take business loans out by falsifying there application forms just to get the loan through. Soon after the loan only to find out they are unable to repay the loan back. It is amazing how many of these people think well if the company goes under its hard luck to the bank or the loan company for making the loan. No No No this is not the case, the loans can be reverted back to you personally if they are able to prove that the loan application was fraudulent. Once they are able to prove that it then also becomes a criminal offence also.  So if you decide that you need to apply for a business loan make sure you disclose the financial condition of your business then that way you will have nothing to worry about.
 
4. Transferring Business Assets. What really amazes me that the number of times I have seen business owners transferring assets of the company when they know that the business is heading for bankruptcy. They do the most stupid things you can imagine like transferring property and other assets to friends or family. They must really think that the creditors and the Insolvency Practitioners are not aware of things like this? Dream on, they are fully switched on to these kind of trick and can revert transactions going back as far as 7 years if need be. Again it become a criminal offence once you do this as you are hiding your assets from your creditors.
 
5. Preferential Payments. You as owners are in a position of trust when it comes down to creditors money. Under normal trading it is ok to pay one creditor over another as long as you are paying every one on equal terms. But when your business id going through though financial times and you start paying one creditor over another and the company fails. You could face criminal charges and the transactions can be reversed back by the courts. In the event that your business fails then your outgoing payments will be scrutinised by the creditors or the Insolvency Practitioner to make sure that some creditors weren’t given unfair advantage and paid when others were paid nothing. Creditors who have security will no doubt exercise there rights to terminate and collect on the security.
 
6. Wise to Keep Two Bank Accounts. If your business is facing serious financial problems and owes money to a bank, it’s often wise to keep most of your current and other accounts with another bank who you don’t owe money to. This is because typically your loan agreement gives the bank the right to take your funds without prior notice if the bank thinks you’re in financial trouble. (This is called a "offsetting.") It can be a shock to learn that one morning your bank has suddenly cleared out your funds from your current account.
 
Category : FINANCE | Blog
11
Feb

Birmingham City Council & A.C.E. £5,000 Grant For Businesses

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I thought that this might be useful to all those small businesses in the Birmingham area looking for some new ways to grow there business.


Are you seeking to grow your business but are not sure how to go about it?
Do you need some help adapting your business offer to the current conditions in the market?

 
You could be eligible to receive free business support valued over £5,000.
 
Birmingham City Council and the Working Neighbourhoods Fund are offering free one-to-one business mentorship support to 90 small and medium sized businesses based in Birmingham.
 
Starting in March 2010, companies trading for six months or more will have the opportunity to work with Deloitte and the Academy for Chief Executives to build customised development plans and receive dedicated coaching and mentorship for up to 12 months. The programme is designed for entrepreneurs and management teams seeking to navigate their companies through the necessary – and often rewarding – challenges of growth. 
 
If you are seeking to bring your company to the next level or need sustained guidance on particular business issues, you could stand to gain real benefits from participating in the Stimulating Demand High Growth Programme (SDHG). 
 
As part of this free service you are invited to find out more by joining us at an introductory half day event on either 23 March 2010 or 22April 2010 at the Deloitte office, 4 Brindleyplace, Birmingham B1 2HZ.
 
If you would like to attend either of these events or simply wish to find out more, please email birminghamSDHG@deloitte.co.uk or call 0121 695 5580. 
 
 
The SDHG programme is free to all participants thanks to grant support from the Working Neighbourhoods Fund. The programme is delivered by Birmingham City Council and Deloitte with the Academy for Chief Executives. 
 
Please refer this programme to other eligible Birmingham based businesses.

 
Category : FINANCE | Blog
17
Nov

STATUTORY DEMAND

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What Is A Statutory demand & How Does It Work
 
Content of statutory demand
 
The demand must be signed and dated by the creditor or a person authorised to sign on the creditor’s behalf. It must state whether the debt is payable immediately or at a future date, the amount of the debt and the consideration for it (if there was no consideration, then it must detail the way in which the debt arose). It must state details of the unsatisfied judgment or, if none, the basis for the creditor’s belief that the debtor appears to have no reasonable prospect of being able to pay.
Any interest claimed must be detailed (ie the amount or rate and the grounds on which payment is claimed) and is limited to the amount accrued at the date of the demand.
 
 
Security / Collateral
 Where the creditor holds security, the full amount of the debt is included in the demand, but the nature of the security and the value of the assets needs to be stated, together with the unsecured element which is claimed for payment. Security referred to must be held over property of the debtor, not security in connection with a third party, for example held over company assets or the statutory demand may be set aside on the debtor’s application.
 
 
Information to be given in the statutory demand
 The statutory demand must provide an explanation to the debtor of the purpose of the demand and the consequences for failing to comply within the three week time limit – that bankruptcy proceedings may follow. It must explain the time and manner in which the demand must be complied with and inform the debtor of his right to apply to the court to have the statutory demand set aside. The statutory demand must include details (name, address and telephone number) of a named individual with whom the debtor can communicate regarding the debt.
 
 
Service of the statutory demand
 The creditor is bound to do all that is reasonable to ensure that the demand is brought to the debtor’s attention, including personally serving the statutory demand on the debtor if practicable.
 
 
Substituted service
 Where it is not possible to effect prompt personal service, service may be effected by other means such as first class post or insertion through a letter box (Practice Direction, 18 December 1986, [1987] 1 All ER 604). For this to be acceptable to the court, the creditor must have taken similar steps to those which would persuade the court to grant an order for substituted service of a petition. The Independent 29 June 1992 it was confirmed by Blackett Ord QC that in some cases it may be appropriate to serve the statutory demand upon the Solicitors of the debtor.
 
By advertisement (amended April 2009)
 Where the statutory demand is based on a judgement or order and the creditor knows or has reasonable cause to believe that the debtor has absconded or is avoiding service, and there is no real prospect of progressing the debt by enforcement action, he/she may advertise the demand in such manner as he/she thinks fit. The time for compliance runs from the date of the advertisement. The above mentioned Practice Direction of 18 December 1986 specifies the form of such advertisement.
 
Proof of service of statutory demand
 Where a bankruptcy petition is to be presented based on a statutory demand, then an affidavit verifying service must be filed with the petition.
Except where there has been acknowledgement of service by the debtor, if the demand was personally served, then the affidavit must be made by the server.
Any acknowledgement of service by the debtor should be filed with the affidavit of service and if this is the case, the appropriate person to make the affidavit is the creditor or a person acting on his behalf.
 
If not personally served or if there has been no acknowledgement of service, then the steps taken to effect service must be detailed in an affidavit by a person with direct knowledge of the means adopted for serving the demand and specifying a date when the person considers the demand will have come to the debtor’s attention.
The court may refuse to file a petition if it is not satisfied that the creditor has discharged his obligations with regard to service.
 
Application to set aside statutory demand (amended April 2009)
 The debtor may, within 18 days of service of the demand on him (or of the date of the publication of the notice), apply to the court for the demand to be set aside.
The debtor must apply to the court in which he would present his own bankruptcy petition unless the petitioner is a Government department, the debt is subject of a judgment and the demand indicated the intention to present a petition in the High Court, in which case application should be made to the High Court.
If the 18 days has elapsed, the debtor may apply for an extension of time to a Judge in the High Court or to a District Judge in the county court in accordance with Practice.
 
Effect of application
As from the time the application is filed the 3 weeks deadline for compliance with the statutory demand ceases to run.
The application must be supported by an affidavit detailing when the statutory demand was served and the grounds on which the debtor believes it should be set aside. A copy of the statutory demand must be filed with the application.
 
Hearing the application
Upon receipt of the application, the court may dismiss it without giving notice to the creditor if it is satisfied that there is no good cause shown for setting aside the demand. The time for compliance will start again immediately. If not dismissed immediately, the court will fix a time for hearing the application and give 7 days notice to the debtor (or his solicitor), the creditor and whoever is named in the statutory demand as the person whom the debtor may contact about the debt. In the High Court, and with the written consent of both parties, Registrars are willing to deal with an application to set aside a statutory demand without attendance by the parties.
 
Grounds for setting aside the statutory demand
As with all such matters, the court has discretion as to whether to set aside the demand. The court can determine the matter summarily or adjourn it, giving such directions as it thinks fit. It may grant the application if:
  1. the debtor appears to have a counter claim, set-off or cross demand which equals or exceeds the amount specified in the statutory demand; or
  2. the debt is disputed on grounds considered by the court to be substantial; or
  3. it appears that the creditor holds some security which has not been disclosed in accordance with the rules or the court is satisfied that the value of the security is greater than or equal to the amount claimed; or
  4. the court is satisfied on other grounds that the demand ought to be set aside.
Disputed debt
The ground on which a bankruptcy petition may be presented is not that the debtor has failed to pay a sum due, but that he has failed to comply with the terms of a statutory demand. In the case where the demand is for a greater amount than that actually owed or where part of the sum demanded is admitted to be disputed on substantial grounds, the debtor could not avert the presentation of a petition by paying the amount believed to be due. In these circumstances, under r6.5(4) (b) the debtor is entitled to have the demand set aside unless the whole of the debt demanded in the statutory demand is undisputed.
 
Dispute over
If the dispute is over the value of security only, the court may require the creditor to revalue its security for the purposes of the demand only.
 
Judgment
If a statutory demand is based upon a judgment, then the court will not dispute the validity of the judgment debt. As a general rule the court will not adjourn the application to await the result of the application to set aside the judgment.
 
Other Grounds
Technical or factual defects in a statutory demand will not necessarily persuade the court to set it aside. The court will only exercise its discretionary power to set aside a statutory demand ‘on other grounds’ if the circumstances are such that it would be unjust for the creditor to present a bankruptcy petition founded on the debtor’s non- compliance with the demand. Accordingly, in the absence of injustice to the debtor, any application to set aside a statutory demand would be dismissed.
 
Dismissing the application
If the court dismisses the application to set aside the statutory demand, it must make an order authorising the creditor to present a petition either forthwith or at a specified date.

 

Category : FINANCE | Blog
17
Nov

Enforcing Court Judgment

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If a court has decided that someone must pay you an amount of money (judgment) and you have not received it, you may want to ask the court to enforce the order.

First of all you should read the guidance called I have a judgment but the defendant hasn’t paid – What can I do? (Leaflet EX321). It explains what is available to help get your money for you (called ‘enforcing your judgment’), and which of the methods of enforcement available is likely to be most successful in different circumstances.

You can try to get your money by asking the court for any of the following:

You can also request that the defendant is called into court for an Order to obtain information (Leaflet EX324). This is not a method of attempting to retreive the money owed, but an interview to discover information about the defendant’s financial situation.

Category : FINANCE | Blog
10
Nov

Coping With Financial Stress

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One of the most common side effects that people experience when trying to cope with their debt problems is financial related stress. Stress is defined as “physical, mental, or emotional strain or tension” and is brought about by a large range of factors including relationship break-up, problems at work or, in this case, debt.

Financial stress
Financial stress is common if you are in a position where you are concerned by the level of debt that you have. The signs of stress are varied and stress can manifest itself in both emotional and physical ways. Some of the most common signs of stress are: headaches, irritability, aches and pains, sleep problems, nausea and feelings of apathy or anxiety.
These feelings brought on by stress can also cause you to make poor financial decisions. These poor decisions can lead to increased debt and can start a vicious cycle of stress and anxiety that seems as if it is never going to end.
When you reach this point, your feelings of helplessness and hopelessness can become so overwhelming that you may literally be unable to function correctly in the real world.
Recognising the problem
One of the key stages to coping with financial stress is to recognise that the problem exists. If you recognize any of the above traits in yourself then it is time to act and to get the help you need.
The well being of you, and your family, is your priority during times of financial stress. It is vitally important that your well-being takes priority as ensuring that you are taking care of yourself is the only way to ensure that your family will be taken care of also.
The most important thing to realise, understand and accept is that no situation is completely hopeless.  By recognising that you are stressed you can take steps to tackle the problem with the guidance and help of family, friends and experienced debt professionals. This is the crucial first step on the path to dealing with the stress you are under.
How to get help
If you are experiencing financial stress the worst thing that you can do is bury your head in the sand. It is important that you can find someone to talk through your financial problems with, whether that is a friend, loved one, your doctor, or a debt counsellor.
Similarly, if you know someone that is showing the outward signs of stress then try talking to them and to get them to open up about their financial problems.
There are many debt counselling services available in the UK that offer free, confidential advice to help you cope with your debt problems. Whether you need advice and help with personal budgeting, the use of credit cards and loans or arranging a plan to repay your debts there are services nationwide which can help.
Priorities
One of the best ways to cope with financial stress is to set out a list of your priorities. Either on your own, or with the help of a debt counsellor or turnaround consultant you can identify which issues are causing the most stress and prioritise solutions accordingly. You may have certain debts which are more problematic than others, or you simply might not be able to deal with all your individual creditors.
By establishing what it is that is causing you most stress it is possible to set a priority list and tackle them in order of importance.
 Coping with financial stress can be difficult but it is important to remember that no problem is insurmountable. By talking over your concerns with friends, family or a qualified debt counsellor then you can begin to recognise your problems and come up with solutions.
Category : FINANCE | Blog
16
Oct

Consumer Credit Debts & Write off

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There has been much hype over recent months over claims that loan and credit card debts taken out before 6th April 2007 can be written off due to recent changes in the law. Whilst much of the information surrounding this issue is inaccurate or misleading it is true that in some cases lenders are unable to issue legal proceedings to recover monies that are owed to them. This is because some of their credit agreements lack what are called ‘prescribed terms’ and are therefore considered ‘irredeemably unenforceable’.

What is the background?
In order to protect the public from unscrupulous lenders, the Consumer Credit Act was added to the statute books in 1974. It requires that most companies that offer goods or services on credit or those that lend money to consumers are licensed by the Office of Fair Trading.  It is a criminal offence to trade without a licensing arrangement.
The Consumer Credit Act also requires certain credit arrangements to be set out in a specific way and that these arrangements must contain certain information. Without this information these agreements are not enforceable.
Credit agreements where the amount of credit or hire exceeded £25,000 were excluded from control until 6th April 2008.  Whilst pre-existing agreements above £25,000 remain outside CCA regulation, all new credit and hire agreements are now covered by the 2006 Consumer Credit Act.
The Consumer Credit Act was worded in a way that lenders would be unable to enforce repayment of the loan or credit in court if they did not comply with the provisions of the Act.
Is it possible to write off debts?
There has been an increasing trend of consumers attempting to write-off their debts in recent months, partly thanks to a large number of advertisements from claims management companies seeking to exploit loopholes in the Consumer Credit Act legislation.
Where an agreement was signed before 6th April 2007, if a borrower doesn’t pay their debts the lender can apply to a court for an enforcement order to recoup their money.  However, there are certain circumstances in which the court does not have power to enforce the agreement. The loan or credit agreement therefore remains unenforceable and the lender is unable to recover any money from the borrower using legal means.
For example, when lenders cannot produce copies of the original credit agreement that a borrower signed, or if the agreement failed to correctly state one of the Act’s ‘prescribed terms’ (such as the Annual Percentage Rate (APR)) firms claim that borrowers may be able to get your debt written off.
For agreements made on or after 6 April 2007 the court now has discretion under the 2006 Consumer Credit Act 2006 to enforce an agreement which does not comply with the Act’s requirements. 
Despite some reporting to the contrary, cases of this type are continuing to be heard and the outcomes decided on their own particular facts.
Companies who promise to help
Many firms have appeared in recent months claiming in their advertisements to be able to get you out of your credit card or personal loan debt. There are some companies suggesting that up to 80% of agreements are unenforceable.
These companies generally charge a fee to assist you get rid of the debt, sometimes as a percentage of the amount you save. Whilst in certain circumstances as detailed above there are agreements which may be unenforceable, many of them are.  If you believe that your agreement is unenforceable and you are not making repayments you may well be incurring legal costs and default charges should it be proved that you are mistaken. You may also incur charges to a claims management firm even if your case is unsuccessful.
Firms that provide regulated claims management services must be authorised by the Regulator and you can search on line to see if the claim management firm you are proposing to use is regulated. 
Category : FINANCE | Blog
29
Sep

Home repossession Video’s

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Category : FINANCE | Blog
18
Sep

BUSINESS FINANCE CASE STUDIES

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Our Business Finance consultants have assisted clients with all their fund raising needs. Our range of services in this sector, inter alia, include: continue

Category : FINANCE | Blog
15
Sep

Here are some tips to help you be a careful consumer.

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1. Know who you’re dealing with. Do business only with companies that clearly provide their name, street address, and phone number.  

2. Protect your personal information. Only give out your credit card or other personal information when buy­ing from a company you know and trust.

3. Take your time. “Resist the urge to act on impulse.” Most if any offer, that’s good today will be good tomorrow, too.  

4. Rate the risks. Every potentially high-profit investment is a high-risk investment. That means you could lose your investment — all of it.  

5. Read the small print. Get all promises in writing and read all paperwork before making any payments or signing any contracts. Pay special attention to the small print.  

6. “Free” means free. Throw out any offer that says you have to pay to get a gift or a “free” gift. If some­thing is free or a gift, you don’t have to pay for it. End off.

7. Report fraud. If you think you’ve been a victim of fraud, report it. It’s one way to get even with a scam artist who cheated you. By reporting your complaint by dialling 999 you are providing important information to help the police track down scam artists and stop them!

Category : FINANCE | Blog
11
Sep

WHAT IS CREDIT INSURANCE?

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Credit insurance comes in several different forms:

credit life insurance - the outstanding balance is paid in the event of your death. credit accident and health insurance - monthly credit payments are made for you during periods when you are unable to work due to accident or illness. Credit unemployment insurance - monthly credit payments are made for you during periods when you are unemployed. continue

Category : FINANCE | Blog
11
Sep

WHAT CAN I DO IF A CREDIT REPORT HAS INCORRECT INFORMATION ABOUT ME?

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If you believe information being reported about you is inaccurate, incomplete or outdated, challenge it by notifying the credit reporting agencies listed below.

www.equifax.co.uk

www.experian.co.uk

Category : FINANCE | Blog
11
Sep

CAN I AVOID A FINANCE CHARGE ON SOME FORMS OF CREDIT?

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Yes. Many credit cards enable you to pay the entire outstanding credit amount within a certain time period without incurring any finance charge. By paying off your credit balance within the grace period, continue

Category : FINANCE | Blog
11
Sep

WHAT IS THE DIFFERENCE BETWEEN A FIXED AND A VARIABLE RATE?

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A fixed interest rate means that the rate of the finance charge does not change throughout the duration of the extension of credit. For example, a car dealer may offer a loan for a car at 4.9%APR for 24 months; this means the APR is fixed at 4.9% for the duration of the loan (which is an instalment closed-end credit loan). continue

Category : FINANCE | Blog
11
Sep

WHAT IS CREDIT ?

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Credit is money granted by a creditor or lender to a debtor or borrower, who defers payment of the debt. In exchange for the credit, the lender gets back the money, usually paid on a monthly basis, plus interest. The debtor gets the use of the money to pay for and take possession of things today and the creditor gets back more money that s/he loaned out. Modern society is dependent upon credit to generate sales; it enables people to have the things they want and need, but can’t afford to pay for right away. continue

Category : FINANCE | Blog