Diary of a repossession

Really2

jamescredmond wrote: »

I'd suffer immediate and long-term health problems at the cost of a 'bespoke' kitchen.

this example is probably untypical, but I'd certainly like to learn just how widespread and deep MEW is/goes.

I would say as far and as deep as unsercured loans would have duing the boom if mewing was not around.;)

Microstar_2

I agree with fc123 that its really the diary of a bungled business venture. Sounds like the guy was sold a pup - someone saw him coming.
Nothing wrong with MEWing to start up in business, its how many (most?) small businesses get started in the UK. Obviously you have got to do it right though.
I started in business in the late 1970's and through a combination of good judgement and (mostly) good luck things have gone well. I'm amazed that this chap's business went belly-up after only a few months though, he must have been seriously conned.

Personally I don't know many people with the 'false wealth' mentioned above. Most of the people I know and socialise with still seem to be doing pretty well for themselves. I think there's been a bit of belt tightening going on but nothing major as yet. One of my close friends who owned a car body repair business went bust about five years ago, but he's bounced back now and business is not doing so bad.
My own business (independent used car sales and repairs) is just about ticking over OK. Things don't seem to be quite as bad as reported in much of the press, there are still customers coming through the door, but the banks are the main problem at the moment and I'm hearing stories from other local traders of major problems with credit facilities. New car retailers are suffering big time, but that's mainly because they are saddled with very high costs and bloated business model - only got themselves to blame I'm afraid.

Conrad

When buying a business you want legal guarantees provided by the seller that the accounts and written expectations do not omit any important information that might have a bearing on the buyers willingness to proceed.

Guy I knew bought a business based on the accounts provided. What the seller had not told him however is that he had 2 years figures put into one year!

I'd also expect to see 24 months Bank statments.

moanymoany

Immediately having found a company they buy a BMW Z4 which is now £500 a month or about £27k to buy.

I think they are likely to declare bankruptcy. It would seem the obvious thing for them to do. He is 50 - not the best age to get a high paying job. I wonder what they are doing now? Can't remember if they said.

There was a woman who works in insolvency on the radio this morning - said they are rushed off their feet!

Really2

Conrad wrote: »

When buying a business you want legal guarantees provided by the seller that the accounts and written expectations do not omit any important information that might have a bearing on the buyers willingness to proceed.

Guy I knew bought a business based on the accounts provided. What the seller had not told him however is that he had 2 years figures put into one year!

I'd also expect to see 24 months Bank statments.

Also the order book, customer activity and retention, and the quote book.
I would treat buying a business much like picking up the soap in prison.
Don't do it untill you have asured yourself it is safe to do so.:D (not from personal experiance)

Really2

moanymoany wrote: »

There was a woman who works in insolvency on the radio this morning - said they are rushed off their feet!

A Nurse told me it was the same for the patients in the leg fracture department.

Eskimo12345

needahome wrote: »

MAY 2006
Paul buys a new BMW Z4 plus a small Rover for our younger son Adam...

AUGUST 2007
...Our BMW and Adam's car are returned.

That made me chuckle... if he'd bought them properly, they wouldn't have to give them back. I spent months saving up for my baby, then I BOUGHT her!

The whole thing looks like an unfortunate result of a few bad financial decisions.

But I think the question we're missing is, WHY DID THEY BUY A ROVER??!! lol

drc

It's such a shame...they were doing so well before greed overtook. Why people have to have hand-made kitchen cupboards is beyond me?

But I think they should be entitled to some benefits since the husband had been paying tax and NI for years. Can't believe you don't qualify for any benefits if you are self-employed. Surely that can't be the case?

fc123

drc wrote: »

It's such a shame...they were doing so well before greed overtook. Why people have to have hand-made kitchen cupboards is beyond me?

But I think they should be entitled to some benefits since the husband had been paying tax and NI for years. Can't believe you don't qualify for any benefits if you are self-employed. Surely that can't be the case?

I didn't know that either.........bit of a worry...what if one of us got really ill? Those sickness policies for S/Employed were always rubbish too...we don't have any of them.

Conrad

Microstar wrote: »

Personally I don't know many people with the 'false wealth' mentioned above. Most of the people I know and socialise with still seem to be doing pretty well for themselves.

It's hard to tell. In my business role I see the other side of people's public face. Very common to meet people with grand houses and lifestyle's, but very shakey finances.
One guy, an Architect had the largest house in a village worth about £2m. On the quiet he had one wing of the house let, and used to regularly MEW to fund his life style.

Another has an IT company, and used to MEW via remos and secured loans constantly to repay masses of card debt (like £50 - £100k go each time). He has the big R Rover, lots of kids and private schools and so on.
Really though if you sold everything he had and shook him down I think he'd be worth a modest £100k at best, so less than many ordinary folk with ordinary lifestyles.

I see quite a lot of slef employed people spending thier Tax money. They get used to spending it and gradually come to see it as thier rightful normal income and worry about the bill another day. In this way they kid themselves they earn more than they do. Very common indeed