I am looking for advice regarding an insolvency of my business and the company appointed

Discussion in 'Insolvency' started by Rosecottage, Mar 26, 2020.

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Are they negligent?

  1. Yes

    0 vote(s)
    0.0%
  2. No

    100.0%
  3. Should I seek legal advice?

    0 vote(s)
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Multiple votes are allowed.
  1. Rosecottage

    Rosecottage UKBF Newcomer Full Member

    5 0
    I really need some professional advice from professional insolvency companies. I have a full document so if anyone is willing to help and wants more information please do not hesitate to ask. Basically I googled advice re Insolvency due to non payment from a client of £46K and a VAT Bill of £22K. A guy representing an established professional accountancy with an Insolvency arm to its business got in touch. We met at my offices. Overview I told him upfront before we met I had a commercial loan secured against my property. I gave him a copy of the document. I have in writing on several occasions and confirmation from the Insolvency Company I wanted to buy the goodwill of the company. I was also coerced to change my factoring company, I was happy with my current one and we had a good working relationship, highlighted in their testimonials. Yes I signed the form which referred to Section 216 (which they are now currently throwing at me all the time). So 3 key things, they ignored the loan secured against my property, advising I should not make payments and renegotiate no judge in the land would take my home off me (this was their advice) the loan was a fixed rate loan with a fixed rate interest. Result I was faced with repossession of my home on 19 December 2019. When I complained to the Insolvency company the Head of Insolvency denied them having any knowledge of my personal loan (incorrect it was a commercial loan) or that it was secured against my property (this guy was rude and condescending and he included no salutation on his email to me). I produced the relevant emails, no apologies nothing. What an arrogant unprofessional person. Secondly, I was forced to resign as a director, I was sent an extremely hurtful and painful letter with the threat of going to prison if I did not do so. Why because even though it had been clearly discussed and documented that I was purchasing the good will of the company this failed to happen. I was not in the slightest aware of the London Gazette, and what it meant. Yes they put my insolvency in there but not the goodwill. They have categorically denied all responsibility for this and just refer me to the signed document and section 216 and it was the Directors responsibility. They had all the information are they culpable?? And finally I am tied into a Factoring agreement which I clearly requested a 3 month review, but this is not going to happen and like the Insolvency company the factoring company have behaved both condescending and ruthless. I have seen on the internet Insolvency companies saying use a professional so everything is carried out appropriately, I did and they don't care about losing my home, my directorship or having to work and communicate with an organisation that just does not care about me or my business. It has all been about money, commission fees, at my expense. Any feedback, support or advice would be so very welcome. I have tried to communicate with the Managing Partner of the Practice who I went to meet at their offices in a City. In fact I travelled from my place in the country it took 3 hours to get there, he was 20 minutes for the 10am meeting stuck in traffic and the Head of Insolvency waltzed in approximately 10 minutes after the meeting had started. Then when it finished the Managing Partner shook my hand and wished me a safe journey back and the Head of Insolvency, reluctantly shook my hand but said absolutely nothing. I think this in itself sums up the company. With the troubling times we are now having as businesses, I would not like to think that they are going to treat others like myself and put them through the pain and anguish they have done to me. Thank you
     
    Posted: Mar 26, 2020 By: Rosecottage Member since: Mar 26, 2020
    #1
  2. UK Contractor Accountant

    UK Contractor Accountant UKBF Big Shot Full Member - Verified Business

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    Are they referring to re-using same or similar company name?

    This is distinct from a 'trading name' which you can quite legitimately use (assuming nobody objects).
     
    Posted: Mar 26, 2020 By: UK Contractor Accountant Member since: Sep 18, 2013
    #2
  3. Ian J

    Ian J Factoring Specialist Full Member - Verified Business

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    That happens quite often when insolvency companies are involved and is purely so that they can obtain an introductory commission
     
    Posted: Mar 26, 2020 By: Ian J Member since: Nov 6, 2004
    #3
  4. Rosecottage

    Rosecottage UKBF Newcomer Full Member

    5 0
    The new company was a completely differently name but trading as a name similar to the previous company. I have worked at a previous company where the company owner did this. So I needed to buy the goodwill to enable me to do this.
     
    Posted: Mar 26, 2020 By: Rosecottage Member since: Mar 26, 2020
    #4
  5. Lisa Thomas

    Lisa Thomas UKBF Enthusiast Free Member

    3,486 436
    I have struggled to understand entirely what has happened from the way your post is worded but have tried to answer your queries as best I can below.

     
    Posted: Mar 26, 2020 By: Lisa Thomas Member since: Apr 20, 2015
    #5
  6. Rosecottage

    Rosecottage UKBF Newcomer Full Member

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    A similar company name, someone obviously reported me as it had not gone in the London Gazette
     
    Posted: Mar 26, 2020 By: Rosecottage Member since: Mar 26, 2020
    #6
  7. Rosecottage

    Rosecottage UKBF Newcomer Full Member

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    Is there anyway I can get out of it, or ask them to pay any fees for an early exit?
     
    Posted: Mar 26, 2020 By: Rosecottage Member since: Mar 26, 2020
    #7
  8. Ian J

    Ian J Factoring Specialist Full Member - Verified Business

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    It depends on who the factoring company is as some are much more aggressive than others.

    PM me details and I'll let you know
     
    Posted: Mar 26, 2020 By: Ian J Member since: Nov 6, 2004
    #8
  9. UK Contractor Accountant

    UK Contractor Accountant UKBF Big Shot Full Member - Verified Business

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    correct. didn't the liquidator advise you on buying the assets and goodwill of the company? The ones I use have their own valuers they use to value the fixed assets and then agree on a goodwill value.
     
    Posted: Mar 26, 2020 By: UK Contractor Accountant Member since: Sep 18, 2013
    #9
  10. Lisa Thomas

    Lisa Thomas UKBF Enthusiast Free Member

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    Posted: Mar 26, 2020 By: Lisa Thomas Member since: Apr 20, 2015
    #10
  11. Mark T Jones

    Mark T Jones UKBF Big Shot Free Member

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    it’s hard to imagine a more invidious relationship amongst so-called professionals.
     
    Posted: Mar 28, 2020 By: Mark T Jones Member since: Nov 4, 2015
    #11
  12. Ian J

    Ian J Factoring Specialist Full Member - Verified Business

    5,961 1,906
    It's a grubby business. Many of the well known names in the insolvency profession started up their own factoring brokerage offering their leads only to those factoring companies that reciprocated with insolvency work.

    The poor client thinks that he's getting best advice whereas all he's doing is lining the IP's pocket. I don't know who the IP is for the OP's company but I know which factoring company they put her with and the deal was done to line their pockets and not for the benefit of Rosecottage
     
    Posted: Mar 28, 2020 By: Ian J Member since: Nov 6, 2004
    #12
  13. Mark T Jones

    Mark T Jones UKBF Big Shot Free Member

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    it also appears to be common practice for factoring companies to recommend Phoenix info to cleanse the business - presumably via their pet IP - thereby making credit far less accessible.
     
    Posted: Mar 29, 2020 By: Mark T Jones Member since: Nov 4, 2015
    #13
  14. Ian J

    Ian J Factoring Specialist Full Member - Verified Business

    5,961 1,906
    To be honest that's not something I've come across with their existing clients unless the state of the company warrants it but there are situations where a factoring company is presented with a proposition of a company that is insolvent and in that case they will often suggestion a phoenix.

    Bear in mind that the biggest concern for a factoring company is client fraud and invariably a profitable solvent company won't have need to issue fraudulent invoices which is why the factor will often suggest a phoenix rather than just saying no thank you - if the situation warrants it
     
    Posted: Mar 29, 2020 By: Ian J Member since: Nov 6, 2004
    #14
  15. Chris Ashdown

    Chris Ashdown UKBF Legend Free Member

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    I don't understand all this, if the company went insolvent and was closed down by the IP, where does the new factoring agreement come into it
     
    Posted: Mar 29, 2020 By: Chris Ashdown Member since: Dec 7, 2003
    #15
  16. JEREMY HAWKE

    JEREMY HAWKE UKBF Legend Full Member

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    Factoring agreement for Phoenix LTD company part 2

    It must be lucrative if the director keeps shutting down and starting up
     
    Posted: Mar 29, 2020 By: JEREMY HAWKE Member since: Mar 4, 2008
    #16
  17. Lisa Thomas

    Lisa Thomas UKBF Enthusiast Free Member

    3,486 436
    We think OP set up a Phoenix new Company and this is where a new factoring facility was set up.
     
    Posted: Mar 30, 2020 By: Lisa Thomas Member since: Apr 20, 2015
    #17
  18. Rosecottage

    Rosecottage UKBF Newcomer Full Member

    5 0
    They were insistent the new company should move to 'the new factoring company' the guy who did the insolvency was an independent working as a front guy for a firm of accountants. The IP at the accountants that did my insolvency was a previous work colleague of the independent guy, who himself and his company went into liquidation prior to becoming an independent. His business that went into Liquidation was one that was headed up by an 'expert in Insolvency' and 'my guy' was regarded as a corporate recovery specialist. He went freelance, represented this big well known firm in a big City. It was in writing I was buying the goodwill of the company and a price was agreed and this was definitely meant to happen, it didn't why? Because the big company are saying it is my fault as the Director of the insolvent company for not putting it in the London Gazette, something I knew nothing about and was paying them nearly £5K to do my insolvency and ensure all processes were followed, completed etc as they were the professionals. They had all the information, are they culpable?
     
    Posted: Apr 7, 2020 By: Rosecottage Member since: Mar 26, 2020
    #18
  19. Chris Ashdown

    Chris Ashdown UKBF Legend Free Member

    11,478 2,366
    Ring up a solicitor and ask for a 40 min free talk to get their advice on whether you have a case worth pursuing and give him all the paperwork
     
    Posted: Apr 7, 2020 By: Chris Ashdown Member since: Dec 7, 2003
    #19
  20. Ian J

    Ian J Factoring Specialist Full Member - Verified Business

    5,961 1,906
    According to your factoring agreement they now have to disclose if they are paying a commission and who to and it also states that they will tell you how much if you contact them to ask.
     
    Posted: Apr 7, 2020 By: Ian J Member since: Nov 6, 2004
    #20