Bankrupt and Trustee appointed

james140101

I was made BR in August due to not making payments on an agreement to purchase the shares in a business I own the majority of. The party selling made a small investment into the business and I stated my intention to purchase those back.

Fast forward months and I can't pay they issue a stat demand and I sign an agreement to pay in instalments. I again fail to do so and they petition for my bankruptcy. Note the investors still hold the stock and I'm likely going to be bankrupt for a business dealing that never goes ahead. The company is soon to be struck off the register and after this date they wont be able to deliver the shares.

Since then I've been made homeless and myself and my partner are living in the home of a family member and are being supported by family for day to day living along with benefits.

I have no assets and the only thing I hold is stock in a business that is now worthless and not trading. I've got small consumer credit debt but the main creditors are responsible for over 80% of all debt on the bankruptcy.

Only yesterday I got notification that a Trustee had been appointed. I'm confused as to what this would entail. At the moment no IPA/IPO is in force because I'm unemployed and being supported by family.

I'm somewhat worried because the OR was really helpful and even gave a potential employer a letter stating that the bankruptcy was no fault of my own. I'm not sure the trustee will be as helpful.

james140101

One thing to note is that the OR calculated the value of my holdings in the limited company based on the investment received at £10,000 for 10% and thus said I had holdings in a private LTD worth est £90,000. However, these shares are now worthless and the company is soon to cease to exist.

debt_doctor

Hi,


I presume that this investment was outside of the Ltd Company protection that made you personally liable?


Is it is the creditor who has appointed the IP?
What the business is worth is no longer your concern, and if you only have benefit income, then your income isn't at risk either. Maybe it was this 'ghost value' that made things look attractive, but doesn't any value belong to the company rather that you?
You mention now being homeless, did you lose an owned / mortgaged property which made you homeless - if so did this have any value?
I presume you do not have any priority need regarding being rehoused by your local council (no children or otherwise vulnerable).
DD

james140101

Thanks for your response DD!

Yes the investment was made by the creditors into the LTD.

I made a personal agreement to purchase said shares and that is what the bankruptcy is based upon.

I believe it is the creditor who has appointed the IP. The value does belong to the company and I'm happy to work day and night if the IP believes he can realise some value of the LTD through a sale.

I was in rented accommodation and am now living in the home of a family member.

Will the IP remain on the case if he establishes the facts that my assets total £0 and the only asset remotely worth looking into are my holdings in an LTD that is currently not trading.

It looks likely that in December I'll start a job with a surplus, will the IP put his fees into any IPA that is arranged? I've heard horror stories online of IP fees of more than £30,000 on sums as low as £3,000. I'm assuming fees only arise on the sale of assets.

debt_doctor

Why would you 'work day and night' to keep a Trustee happy? - Is it that you feel enough could be realised to pay all debts and costs in full and annul your bankruptcy?
I would be amazed if that would happen, and of course you cannot play any part in the running of the business anyway.
It is IPs who rack up huge fees purely driven by the assets / income found.
I have seen IP fees of £30, 40 or £60k when assets are able to support it.
None of the costs would fall to you - they only come from the bankruptcy estate if there is one.
DD

james140101

I think the creditors believe there may be some value in the IP that belongs to the company. However 80% of this value was attached to me operating said IP and like you mentioned I'm no longer involved.

I'm not on friendly terms with the creditors and to my knowledge the appointed IP has a relationship with a number of the solicitors of the creditors(quash/golf kind of thing).

I'm just worried that a specific IP has been appointed to do nothing more than be a pain to myself.

However, I'm thinking of getting my head down arranging an IPA and trying to move on from an experience where I've made many mistakes

mwarby

james140101 wrote: »

I'm not on friendly terms with the creditors and to my knowledge the appointed IP has a relationship with a number of the solicitors of the creditors(quash/golf kind of thing).

I'm just worried that a specific IP has been appointed to do nothing more than be a pain to myself.

So rather than worry about fees and returns (ie the creditors), worry about you and the next year (until you are discharged) and 3 years (when IPA/IPO finishes)