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business Archives - Page 2 of 23 - Bankruptcy UK

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Solicitor who ran a £1m fraud has been made bankrupt

Trusted Kenneth Hunt – who took funds behind his clients’ backs – was made bankrupt after a petition was filed against him by the Law Society

A trusted solicitor who had to pay back thousands of pounds after running a £1m fraud has now been made bankrupt.

Kenneth Hunt was jailed in 2012 after siphoning money from his clients’ accounts to keep his firm going.

The 66-year-old – whose business portfolio included the development of Newcastle’s Quayside – was caught in the “perfect storm” when the global economic crisis struck, the court heard at the time.

And by the time he was finally arrested while on holiday in the Caribbean, the lawyer had siphoned off £1,049,000.

Now it has emerged that he has been made bankrupt, after a petition was filed against him by The Law Society.

He was also disqualified from being a company director last year.

Most of the cash Hunt took was to prop up his ailing firm as the economic and banking crisis began to bite. But Hunt personally pocketed cash as well.

After a detailed investigation into his finances, he was ordered to pay back every penny that he had left. Hunt was found to have taken more than £64,000 himself, and was ordered to pay back £30,000 in a Proceeds of Crime Act hearing in 2012.

Earlier that year, he had been given a four-year sentence after admitting fraud by abuse of position, but the sentence was later cut to three years by appeal judges.

His business partner Barbara Gayton, of South Gosforth, Newcastle, was jailed for two years for her part in the fraud.

The sentencing hearing in 2012 was told how Hunt, of Alnwick, Northumberland, had staged a “flagrant breach of trust” by moving lump sums from client accounts without their knowledge.

When police went to arrest him in late 2009, he had paid more than £30,000 for the financing of his cars.

Hunt repeatedly claimed to have the means to repay the debts, stating that he had £5m invested in companies, £2.5m worth of assets and was a wealthy man.

By July 2010 – nearly 12 months after an investigation was first launched – he said that he was in due diligence to raise £10m which would repay his debts. But that money never appeared, and he was just desperate to keep his reputation for success intact and preserve his lifestyle, the court heard.

Hunt himself told police he did not want to see his distinguished career end “in a mess”.

Debt linked to Depression | Serious Debt Solution Provider

Of course debt linked depression exists. Most ordinary people have felt it. Maxed out credit cards and overdraft facilities … payday loans … the spectre of County Court Judgements and foreclosures. It’s enough to drive someone over the edge. The fact is, people often misjudge situations and before you know it, they have a load of minimum payment facilities and no way of making it through the next month.

An Insolvency specialist is trained to limit damage, but sometimes the best solution is also the most straightforward – simply declare bankruptcy. Believe it or not, the right to a ‘fresh start’ following a bankruptcy is actually enshrined in the Insolvency Services’ Technical manual. Okay, if you’ve only got a few thousand outstanding there are probably better ways of dealing with it, but for those who have unmanageable debts, bankruptcy is almost certainly the best way forward.
debt linked depression

You might be surprised how many people tinker with the likes of IVAs and Debt management plans before taking the plunge, but these only serve to draw out the process by anything between 5 – 20 years. And during all of that time, your credit rating is ‘trashed’, you’re not worth a bean on the high street. Did you know that the average credit rating for someone who has been discharged from bankruptcy for just 18 months is 700 – 750 or ‘fair’?

Fear and pride are often the two things that stop us from making the right decision. In many cases, people just don’t know the facts surrounding bankruptcy. We’ve recently posted ‘Bankruptcy Myths … the definitive Guide’ on this website which debunks most of the nonsense. Give us a call if you still aren’t sure, we’ll gladly give you half an hour of our time.

Feel free to call us with any other bankruptcy questions or for bankruptcy help on 01425 600129.

Why would I want to leave my IVA and enter into bankruptcy?

Perhaps the best way to answer this question is to simply state the facts and let you be the judge. 

            Some interesting points about IVAs: 

  • IVAs are intended to protect assets that might otherwise be lost in bankruptcy e.g. properties, high value vehicles, etc. If you are living in rented and only own everyday items like TVs and fridges, there is no reason to be in an IVA.
  • You will be tied into the IVA for a minimum of 60 months, but if you are on a ‘low start’ IVA i.e. paying less than you should, you will be tied in for a minimum of six years. For example, if your debts totaled £20k when you entered the IVA you should be paying around £185pm
  • The set up costs for an IVA can run into thousands of pounds and this is where your monthly payment goes for the first two years of the IVA – to the IVA company to pay the set up costs. Not a penny goes to the creditors.
  • Thereafter, a trickle of money goes to the debt collectors that bought the debt. It is a myth that you are repaying the banks you borrowed from as it has already been sold on and written off.
  • IVAs have exactly the same effect on your credit rating as bankruptcy. In the eyes of the High Street, people in IVAs are bankrupt.
  • Your credit rating is zero for a minimum of 6yrs in an IVA, whereas those discharged from bankruptcy can now get a mortgage after 36 months (credit cards in half that time). Which begs the question: why struggle in an IVA for years on end when you can be in and out of a bankruptcy in just 12 months? 

 

        Some interesting points about Bankruptcy:

  • You no longer have to attend court. Everything is done online and over the phone. You can literally go bankrupt from the comfort of your armchair.
  • Nobody comes to your house to check what assets you have
  • Bailiffs, Debt Collectors and harassing phone calls are a thing of the past
  • You are only bankrupt for a maximum period of 12 months
  • You can keep cars up to the value of £1000 (but this is often stretched)
  • You can keep your bank account provided there is no debt or overdraft in place
  • Mortgaged properties are not lost in bankruptcy if there is no equity
  • Your name no longer appears in local newspapers
  • Around 85% of those switching from IVA to Bankruptcy have no monthly payment at all while the remaining 15% have a greatly reduced monthly payment.

Perhaps the most significant point when considering whether to leave an IVA is that your financial circumstances are reassessed. It is often the case that people’s financial positions have worsened since entering the IVA and this is recognised by the court. The end result is that there is often no monthly payment – or a greatly reduced one – following bankruptcy.

If you are considering bankruptcy, we will help you throughout the process and submit your application online. Court appearances for bankruptcy are no longer required. Feel free to call us for a chat or for bankruptcy help on 01425 600129.

 

 

 

Official Receiver took my PPI .. now the claims company wants payment

My PPI claim has been sent to the Receiver … do I still have to make payment to the claims company acting on my behalf?

If you engaged a ‘no win no fee’ service to manage the process, then you would almost certainly have signed terms of business agreeing to pay their fees if successful. Money from PPI claims is a so-called ‘bankruptcy asset’ and correctly goes to the Official Receiver. This should have been pointed out by the claims company, but we’ll let you into a little secret .. they will claim their cut directly from the Official Receiver.

Feel free to call us on 01425 600129 with any other questions or for bankruptcy help. Questions may also be posted on our Home Page.

 

Bankrupt and Joint Mortgage – What can I do?

Before bankruptcy my wife and I both had properties and we used one of these to raise capital to fund a new business in 2007. We both signed an agreement. The business closed in 2011 and i was made bankrupt the same year. My wife was not made bankrupt and her name was not on the business. My question is has my interest in the 2nd property been removed by the receiver. How does this affect my wife as her name is still on the property and the property is in negative equity by some 60k.

Well, your half share has been taken over by the Receiver, which essentially means that your wife has a joint mortgage with the Official Receiver now and not you. The Official Receiver has 3 years in which to realise any claim against the property and would probably hope that your wife continues paying the mortgage and the property increases in value. If it is clear after 27 months that there is no equity in the house then the Official Receiver will withdraw his interest in the property. The big question is going to be what are you going to do with the property which you say is in negative equity. As you may be throwing good money after bad just to hold onto a mortgage.

Call us on 01425 600129 or 07479 739139 / 07894 481175 for bankruptcy help. Our advisers are not scripted and will explain everything in easy to understand terms.

Two questions about bankruptcy ….

1. If my limited company closes will it affect my personal credit rating. 2. I only own 50% of the business, could I buy myself out of 50% of debt?

A limited company is a separate legal entity to an individual and debts registered against the company do not reflect on the Directors’ credit ratings, nor are they personally responsible for the debts. The exception to this is where Personal Guarantees are signed with a bank – if the debts are defaulted on, the individual is personally liable and it will definitely affect their credit rating. Regarding the second question, this depends on whether you signed Personal Guarantees or not. If not, you do not personally owe anything to anyone.

Call us for a informal chat about your circumstances or for bankruptcy help on 0800 5977 977 or 01425 600129.

How will my ex going bankrupt affect me?

My ex wife is now bankrupt after a business failure. She was made bankrupt by her ex-employer, a brewery, and the officials have asked for our divorce agreement. We divorced nearly 4 years ago and I gave her a share of my house, a share of my pension plus £800 a month. Am I at risk ? Will my settlement be revisited to help pay creditors?

Taking it from the top: The pension will not be affected, but the £800 per month will form part of her income when the court assesses whether or not she has to contribute on a monthly basis in an Income Payments Agreement (IPA) over the next three years. An IPA comes into force when it is determined that the individual has surplus income after all expenses. This is the single most important aspect of the bankruptcy procedure, as a bodged Income and Expenditure will cost the person dearly.

Regarding the house, this could be an issue if there is equity in the property. The Official Receiver will investigate her interest in the property and its value, as it is the OR’s role to liquidate assets and distribute the funds to the creditors. If the property has no equity, this will not be a problem. Having said that, if the conditions surrounding the house were specified in the divorce agreement, it is unlikely the Official Receiver will intervene.

Feel free to call us on 01425 600129 with any other questions or for bankruptcy help. Questions may also be posted on our Home Page. Please note, court appearances are no longer required for bankruptcy as everything is processed online.

The Team of Business Debt Management helps small businesses through all manner of financial difficulties….

Business Debt Management takes the time to evaluate the financial situation of every struggling business in detail which seeks their help. Their major aim is to find a positive solution to the companies’ debt problems. Therefore, their turnaround-team works closely together side by side with company directors, providing the needed support all the way through the process, and showing a deep understanding for the difficult situation.

Business Debt Management provides free confidential assessment of your business. Please call them on 0845 4633328 or request a call back. For more information please visit http://www.business-debt-management.co.uk.


sean@bankruptcy.co.uk 07812 917002

Business facing difficulty Business Crisis Line – Expert Help 7 days 10PM

Bankruptcy.co.uk Business Crisis line….Bankruptcy avoidance, company voluntary arrangements, specialist creditor negotiations are all options that we can discuss with you.

There are always multiple reasons for businesses running into difficulties. Economic downturns, personal changes in circumstances, ill disciplines as well as general reasons for losing control or a change in business methods and facilities that result in difficult times. if these difficult times aren’t managed correctly then control is lost and the likelihood is that decision taking will be taken away from the existing business or company operators.

Its important….Critically important not to waste time like a rabbit caught in the headlights. When you know you are facing difficulties or you realise that they are already upon you then please take action to find positive solutions to manage and control the difficult time.

The important aspects of any business operators are to survive the difficulties, obstacles and challenges and deliver a profit.

People are generally very attached to their businesses and are likely to put their own capital into it as well as borrowing personally to keep a business functional and operational. No matter what the cost.

 

will be  If your business is experiencing difficulty in trading and has over £25,000.00 of trade creditors then call our Business Crisis or request a call back. We offer a fast and efficient service.
We provide a ‘hands on’ approach by applying our knowledge and expertise to stabilising and improving the position. If we can help you then you will have peace of mind at the end our conversation where you will know that there is a workable plan moving ahead or not.
We do our very best to accommodate the sensitivities that are often so present in businesses facing crisis for one reason or another. We apply co operative principles to our approach and fully understand the pit falls and the challenges involved in surviving in business.

Setting up a business after Bankruptcy …

I was declared bankrupt in Nov 2010 and given a 5 year restriction order. What would be the best way of investing in other companies? I would ideally like to set up a holding company and invest in various start up ventures.

First of all, you are still bankrupt which means that if you borrow more than £500 off any bank / person / organisation you have to declare that you are bankrupt. Secondly, you can’t be a Director or be seen to be influencing the running of a company in any way. However, there’s nothing to stop you from acting as a sole trader in the UK or being a director overseas. Problems can exist with restriction orders depending on what kind of agreement that you have signed. It would be helpful to know what your plans are in order to establish a clear route ahead.

Feel free to call us with any further questions or for bankruptcy help on 01425 600129 or 07479 739139.

 

 

Bankruptcy UK

Bankruptcy UK