Business debts

Clara_Barley

Hello

I hope someone can give me some advice relating to my partner's business debt. Apologies if I am posting in the wrong place.

My partner had to put his company into liquidation in August 2015. The only debt was a bank overdraft and the value of some leased items. My partner has considered bankruptcy or an IVA but, following recent advice from Citizens Advice has decided to hold off. CAB suggested not to enter into any arrangement or make any decisions until a) he was in a position whereby he really had to and b) the actual total amount of debt was clarified.

Before he went into liquidation he spoke at length to everyone involved and was assured by one particular company that they would obtain the very best price for the items when they were returned "even if it took up to a year to sell them".

This particular company then contacted him to say he owes £32000 - this related to three items. One of the items was advertised on E-bay for £18000 for around 10 days before it was seemingly removed and, a few days later my partner received a letter to say that the item had been sold for £8000.

They then issued a CCJ and a hearing was set for the end of November. My partner appealed against the CCJ on the grounds that 1) Nowhere near a reasonable price had been sought and 2) the amount of the CCJ couldn't possibly be £32000, at the very least it should be £24000, which would take into account the £8000 obtained for the 1 item.

The other 2 items have been returned to the company but my partner has received no information about them at all.

The company did not turn up to the court date. A new date has been issued for next week.

Will he be able to speak at that hearing? I have tried to gain advice about what he can or can't do but so much of the information out there seems conflicting. Is there anything he should be doing that he already hasn't or is there any other advice anyone can offer? It would be much appreciated.

tigerfeet2006

I think a call to Business Debtline might be helpful to him.

https://www.businessdebtline.org/

Clara_Barley

Thank you very much for your reply. He has spoken to business debtline and they have given him some useful advice.

The CCJ went against him. Can anyone give me some information relating to this, please? Will he get a notification of the judgement through the post? He has been advised to complete a form asking to pay in instalments. I have searched on the justice.gov website but there are so many forms. Could anyone point me in the direction of the right one?

Thank you

debt_doctor

Hi,
He can apply for a 'Re-determination' within 14 days of the judgement.
There is no fee and can be requested by a letter quoting the case number. Attach a budget sheet showing how much you can afford to pay. This will then be assessed either with or without a hearing.


If more than 2weeks has elapsed, he will need to apply for a 'variation' on form N245. I think the fee is £50.
DD

debt_doctor

Also,
If this was a business debt and the company was liquidated - why is he being held personally responsible? Did he give a personal guarantee?
DD

redmalc

The OP advised there was Guarantee,s on a number of finance leases in the companies name

debt_doctor

redmalc wrote: »

The OP advised there was Guarantee,s on a number of finance leases in the companies name

I don't see the word 'Guarantee' anywhere.
DD

Clara_Barley

It seems he did give a personal guarantee.

Thank you very much for your help. Can I just clarify, he has 14 days from the date of the hearing in which to ask to pay by instalments? Or by judgement, do you mean he will get some sort of formal notification of the outcome of the hearing and he will get 14 days to apply after that? Sorry for the questions.

debt_doctor

Clara_Barley wrote: »

It seems he did give a personal guarantee.

Thank you very much for your help. Can I just clarify, he has 14 days from the date of the hearing in which to ask to pay by instalments? Or by judgement, do you mean he will get some sort of formal notification of the outcome of the hearing and he will get 14 days to apply after that? Sorry for the questions.

He has 14 days from the date of the judgement. Formal notification from the court can take quite a while and this does not extend the time limit so he has 14 days from the date of the judgement to present in writing an offer of payment with a financial statement to back it up.
DD