Im not having a go...

Almost_Redundant

Prpbably not much help to you now, but asking for a deposit up front prior to commencing the work may have highlighted his lack of funds earlier. Also getting stage payments would help if the job lasted some time.

looby-loo_2

I sympathise too. 25 years ago I worked for an interior designer who lived well beyond his means - the way he was spending it was quite clear. Luxury holidays, private education, meals out every evening, etc. One cheque bounce and I got worried but then it cleared. Then overnight he disappeared. I had just finished a large contract job for him and went to the customer. Luckily the customer agreed to pay me direct so I got my money and they got their goods but several customers were not so lucky.

This man and his partner knew exactly where they were heading - it was not sudden. They had lived a wonderful life for several years and left many small buisnesses and customers in the lerch.

skint_geordie2007

Lifeisbutadream wrote:

You are right - even my own accountant didnt consider how it would feel as she has in the past advised clients to consider IVA's and BR - it wasnt until she realised what had happened to us that she started thinking about it!

I do get quite cross that someone can just not pay for something, for ANY reason. Why should people be able to reduce their debt? why should someone else pay for their problems/mistakes???

I understand that in most cases people dont get into problems on purpose, but it should not be up to others to bail them out.

Some people have a choice between eating and keeping a roof over their head, or paying debt I know what I would choose.
I know your situation is slightly different as its not "standard" debt, this guy probably new before he got you to do the work that he couldnt/wouldnt pay.
People go down the bankruptcy route as their last option. People do this to reduce their debt as there is no other viable option. They are putting their houses on the lines, their cars, having their name in the paper and paying back a percentage of their debts from their money they have left over.

I estimate that most people dont run up debts on purpose and have every intention of paying them back. I hope you dont run into any trouble with your business, you never know where you might end up.

Personally, the only people paying for my debt are the banks that make BILLIONS of pounds in profit every year. I am not using that as a justification, and I might feel slightly guilty if a small business had suffered because of it. Then again, I wouldnt use a service which I knew I couldnt pay.,

gettingitsorted

And also as you will read on this forum alot of people had no choice and were buisness people like yourself who through no fault of their own where either made bankrupt or had no other option but to declare it themselves.

Millionare

Lifeisbutadream wrote:

You are right - even my own accountant didnt consider how it would feel as she has in the past advised clients to consider IVA's and BR - it wasnt until she realised what had happened to us that she started thinking about it!

I do get quite cross that someone can just not pay for something, for ANY reason. Why should people be able to reduce their debt? why should someone else pay for their problems/mistakes???

I understand that in most cases people dont get into problems on purpose, but it should not be up to others to bail them out.

Well you'll never know how it is until you are having to go bankrupt.

At the moment your on the other side of the bankruptcy and its easy to say why should anyone help anyone out for any problems or mistakes. however if the shoe was on the other foot you realise how it can happen.

I never ever in a million years thought id ever be forced into bankrupty. Like most things, "IT'LL NEVER HAPPEN TO ME". But here i am facing going to court for bankruptcy next week. and trust me when i say it is the last resort for me and the stress and attempts Ive gone through to try and avoid it have been enormous.

Lifeisbutadream

skint_geordie2007 wrote:

Some people have a choice between eating and keeping a roof over their head, or paying debt I know what I would choose.
I know your situation is slightly different as its not "standard" debt, this guy probably new before he got you to do the work that he couldnt/wouldnt pay.
People go down the bankruptcy route as their last option. People do this to reduce their debt as there is no other viable option. They are putting their houses on the lines, their cars, having their name in the paper and paying back a percentage of their debts from their money they have left over.

I estimate that most people dont run up debts on purpose and have every intention of paying them back. I hope you dont run into any trouble with your business, you never know where you might end up.

Personally, the only people paying for my debt are the banks that make BILLIONS of pounds in profit every year. I am not using that as a justification, and I might feel slightly guilty if a small business had suffered because of it. Then again, I wouldnt use a service which I knew I couldnt pay.,

If my business ran into trouble it would be because if none paying customers.

Lifeisbutadream

Like I said, I really arent having a go and I sympathise with anyone who does end up in the situation of having to go bankrupt.

It is interesting to hear peoples views on this as I did want to know whether people in that situation had considered the other side.

On the other hand though, a friend of a friend has gone bankrupt twice and therefore left a lot of people without payment. He now has a third business and has a huge house and 2 cars. Where does that leave the poor people he didnt pay back from the first 2 bankrupcies????

skint_geordie2007

Lifeisbutadream wrote:

If my business ran into trouble it would be because if none paying customers.

Glad your so confident, and hope your right.
Maybe as another poster put it, you should ask for a deposit to reduce the risk?

Lifeisbutadream wrote:

Like I said, I really arent having a go and I sympathise with anyone who does end up in the situation of having to go bankrupt.

It is interesting to hear peoples views on this as I did want to know whether people in that situation had considered the other side.

On the other hand though, a friend of a friend has gone bankrupt twice and therefore left a lot of people without payment. He now has a third business and has a huge house and 2 cars. Where does that leave the poor people he didnt pay back from the first 2 bankrupcies????

To be honest I didnt consider the other side. After years of not knowing where the end was going to be, and worrying about money my mind was all about doing the best for me and my family.
To be perfectly honest, I dont know how many people include small businesses in their bankruptcy petition. I guess its a tiny amount.
All my creditors were big banks, who in effect have a license to print money (no joke, but thats a different story). Read if you dare.

http://www.moneyreformparty.org.uk/


This guy with a huge house and 2 cars is obvisouly doing very well for himself. If so, he should have been subject to an IPA for 3 years after he declared. His creditors (if anyone of them were poor people?) would have received a % back.

On a side note, its not up to your accountant about how they FEEL about advising people. I would have thought they would have used their professional opinion about whats best for their clients, not who might get caught in the crossfire. Feelings shouldnt come into it.

I understand your not even effected by bankruptcy as this guy hasnt even declared yet (if ever). Trust me, most people do it as a last resort.

Lifeisbutadream

My accountant is also a friend, which is why I mentioned that - she TOLD me that she didnt consider the other side.

I dont really understand what you meant about what I said about my business would only go under if customers did not pay - sorry but that would be the only reason that it would - it is just not a big enough business for anything else to happen to it and if we stopped getting work in then we would both go out and find a job (and yes it would be any job if thats what it took).

The person who we are having problems with is apparantly looking into going bankrupt which is why I took the route that I did.

And yes, people should think of themselves and their families, which is what I am doing. I have had many a sleepless night over what we can do about this and the way that we got through it was by cutting back.

The man I am talking about smokes and drinks - I am sure that he will have found money for that, yet when we could not pay ourselves for a month, we managed to do without so that we could pay the mortgage. How is that fair then??

tight_jock

Believe me when you decide to go BR it is no easy way out. My business went from a £750000 T/O to virtually nil in the space of 3 months due to a blue chip company having a sulk over a contract. My personal money was poured in to make sure that all the little guys and my staff were paid and , well the rest as they say is history.
Circumstances change , sometimes quicker than you think.

In no way is it an easy way out. My health, at the end of the day, is what decided us to declare, and while it may sound selfish, at that point all I needed to do was look after No. 1 for the sake of my family