My Day At Newcastle Court - 28th Jan, It's Over!!!

k2nga

Congratulations and well done for getting through that judge bit i am sure realise how lucky i was now that i did not have to see the judge.

cazjenki

Well done : )

Bankrupt_Novice

Simpsona wrote: »

Hiya BanKrupt Novice (although you should change it to pro now!)

It sounded from your other posts that you had quite a bit of debt to write off? Did the judge have anything to say bout that? Our joint debt will probs be around £110k (2 businesses and personal too) Just sounds such a lot that I'm worried they will see that as being totally irresponsible? Probs just worrying to much!

Hi Simpsona,

The debt we owe, or should that be "owed", the landlord alone is £320,000 over the 8 years remaining of the initial term - but as soon as a new tenant comes in this immediate threat is cleared. Of course if that new tenant fails to maintain the rent the landlords would have the right to come straight back to us again - so that's the main reason we declared bankrupt, being liable for the £320,000 is just not manageable.

The personal debts we could manage but my insolvency practitioner advised us to include them within the bankruptcy.

So don't worry about your debts of £110k between two businesses and personal.

They'll deal with much bigger debts that yours or mine.

I forgot to say in MY DAY IN COURT thread the Judge did ask, after reading the debts, "So have you been in business before?" -I think he must have thought "here's a couple of amateurs" - when I explained I had managed health practices for 10 years and prior to my Catering venture had actually set up my own chain of Health practices which I sold successfully after 5 years did he understand that yes we were experienced business people who were trying to trade in a very uncertain economic climate.

I think he may have had something to say if he felt we were inexperienced and had gone into this without much thought!! Not sure but that's the feeling I got from the question and tone of voice.

Anyway back to your worries. I know your debt, like mine, has been built up because you are trying desperately to keep the business afloat - it means a great deal to you having built it up from scratch. I felt exactly the same about our business, but you know I can honestly say that taking the courage to go BR, and you need courage, and Liquidate the company has been the best thing I could have done.

A huge weight has lifted, I'm no longer stressed with my kids having spent a 14 or 18 hour shift at the shop - I felt so guilty that my attention was being spent more on the company than my two young lads, my dining table which used to be covered with piles upon piles of paper, statements and invoices can now be seen once again (I can actually now get the Mr Sheen out!!!), but most important of all I feel that I can once again run my life the way it was meant to be and enjoy it!!

Did you sort out the Landlord business - think you were going to tell them not to renew the leases? You should check the "Landlord's Responsibilities’' Clauses" within the Lease as even if you decide to cancel the lease the landlord should not be allowed to enter the premises for 21 days etc - I've hunted out my old leases (I've had 5 commercial leases in various guises i.e. sole, partnership and Ltd.) and all contained this clause so perhaps its a standard clause.

I know I was always told by my solicitor that even if I never actually SIGNED a lease if I took up the tenancy and started to trade from the leased premises, then it would be deemed that I had accepted the terms of said lease - I think this a grey area within the law that needs clarifying.

If you have decided to go BR worry no more about the leases and the premises as it will be contained within the BR and the Landlord can not chase you for any payments.

All the best to you and DON'T WORRY about the 110k debt being seen as excessive.