Scary OR Questions

kew63

Got a letter from OR yesterday and she's got some more questions. It seems that one of the creditors (we know who as they have already rung up hubbie's new boss to stir up problems) has been making accusations.

The questions relate to how much he charged his new boss for stock & machinery that he took across. Obviously is implying we somehow sold it as reduced rate. But no way new boss paid what hubbie paid for the stock, got invoices as proof, and the machinery although ancient, we have got reasonable proof that we were paid a very fair price for it, and far more than we would have got without him to sell it to. It;s not the kind of stuff you can sell to many people specific to their manufacturing inductry.

So that part fairly sure have covered, but other questions are really worrying me. They are, did you order materials from creditors after you decided to wind up business, did you make them aware of finacial situation, and did you assure creditors you would be able to pay, & did you order without any intention of being able to pay ? :eek:

The answer is yes did order materials, but that was to fulfill orders that would help to pay debts, no didnt tell them having finacial problem as they would not have supplied, but most definately did not ever think that wouldnt be able to pay them.

Help so scared, I know he didnt do any of this with the intention of not paying these people, and never ever thought of BR until nearly 3 months after he closed. They seem to be implying that we had some devious plan all along to go BR and that's not the case.

I think we have reasonable proof of the facts, but for a lot of it, it's going to be his word.

They have commented that they just need this to help them deal with the creditors and that he's been very co-operative and they are very pleased with this, but really need some advice whether it's some honest talking or reassurance

Thanks

dalip

Just tell the truth. The OR has a responsibilty to investigate any creditor claims....then decide if they are valid objections. As long as you are honest and up front there is not a lot they can do. At the worst you may be looking at a BRU,nobody wants one but they are not so bad really.Let us know how you get on and try not to panic...i know easier said than done but you must try.Dx

estelle123

I agree with dalip just tell the truth and you have nothing to worry about.
Good Luck

fiveyearplan

Please try not to worry kew. When I had my OR interview I really felt he thought I had applied for credit knowing I couldn't pay it back - that certainly wasn't the case though and I didn't even use credit for nearly 2 years before my BR. The OR believed me though, apart from minor things, I never really heard from him after the interview.

kew63

Thanks for the reassurance from all of you.
We're going to get as much info together as possible for the OR, although it will end up being like War & Peace to read at least she'll see we're not trying to hide anything.
They must be used to creditors being fed -up and lashing out - which is totally understandable but hopefully they'll see that hubbie had best intentions and after the fact it looks like he should had been more clued up about how it would turn up , but you dont at the time-do it ? Human nature drives you on to be positive even when it looks pretty bleak, just feel a bit daft afterwards that you couldnt see it for what it was.

Thanks again & will keep fingers crossed :-)

estelle123

I had a face to face interview had everything down in writing it was not complicated as was just a personal BR but never the less wrote everything down.Went into a little office she asked a few questions looked over our SOAs.She asked for a reason for our BR,when we started to explain she stopped us saying she just wants the basic reason not an explanation as its not her place to judge.It was over for the 2 of us from arriving in court to collecting the BR papers in 2 hours.

DVardysShadow

kew63 wrote: »

... So that part fairly sure have covered, but other questions are really worrying me. They are, did you order materials from creditors after you decided to wind up business, did you make them aware of finacial situation, and did you assure creditors you would be able to pay, & did you order without any intention of being able to pay ? :eek:

The answer is yes did order materials, but that was to fulfill orders that would help to pay debts, no didnt tell them having finacial problem as they would not have supplied, but most definately did not ever think that wouldnt be able to pay them.

Help so scared, I know he didnt do any of this with the intention of not paying these people, and never ever thought of BR until nearly 3 months after he closed. They seem to be implying that we had some devious plan all along to go BR and that's not the case.

What comes across to me clearly is that the bankruptcy arose after winding up the business. As long as you keep in mind the distinction between events, you should be fine

I think we have reasonable proof of the facts, but for a lot of it, it's going to be his word.

Equally, someone else is going to be hard pressed to make a real case

They have commented that they just need this to help them deal with the creditors and that he's been very co-operative and they are very pleased with this, but really need some advice whether it's some honest talking or reassurance

It seems to me that they have no real issue, but that they cannot dismiss the creditor's issues without investigating further, so they are following through. A very factual simple straightforward response is called for.