Insolvency. What next?

[Tommytiv]

Hi all,

I’ve been looking through the search option but can’t seem to find my question.

I’m currently going through insolvency with numerous business debts and a 50k DLA, I’ve yet to agree anything as yet but my question is what are people experiences with paying it back?what type of terms are offered?

Thanks

 

[Chris Parkman]

As a Liquidator I would normally look to agree a payment plan over a reasonable time frame, depending on your personal circumstances.
Alternatively most liquidators would consider a discount for a cash offer to bring the matter to an end sooner.

 

[Gavin Bates]

As Chris most liquidators will look to do a deal depending on your personal circumstances so you will be asset for a summary of your assets and liabilities and income verses expenditur.

 

[Tommytiv]

Hi,

Thanks for the responses.

There isn’t really any cash in the business.

My mane concern is my house, I’ve only recently purchased it 12 months ago. I have a couple of personal loans which I’m managing to pay but a large payment plan for the DLA will be a struggle.

If I agreed a affordable plan it would have to be over years but again I’ve not a clue on what they offer. If the plan was over say 10 years I’d be able to do it but I’m not sure these terms would be agreed.

Thanks again

 

[japancool]

Are you talking about company insolvency or personal insolvency?

 

[Tommytiv]

Company insolvency, but I will need to pay the DLA personally. I just want to know peoples experiences ie if they would except a affordable long term payment plan.

 

[Gyumri]

Hi all,
I’m currently going through insolvency with numerous business debts and a 50k DLA, I’ve yet to agree anything as yet.

Thanks

Has a liquidator already been appointed? That would then define your options.
Has a s455 charge been paid on the loan?
How much are creditors owed?
If they are owed £20,000 then that is all you would sensibly have to pay back to the company because the liquidator would have to return any money above this sum recovered to the shareholders - in this case you. Apart from his or her fees.

 

[Frank Wessely]

Company insolvency, but I will need to pay the DLA personally. I just want to know peoples experiences ie if they would except a affordable long term payment plan.

Hi, I agree with the replies so far, which are generally from the Liquidator's perspective. HOWEVER, from your perspective, the initial question is are you certain that £50k is the correct base figure to start from? Has this been properly reconciled? Are there any expenses that you have incurred or other claims against the company that might reduce the amount? If you'd like to discuss further, send me a message or give me a call.

 

[ChrisCallaghan]

Much as others have already mentioned, it is now down to the appointed liquidator how to treat your DL based on your personal financial and asset position.

As @Frank Wessely has suggested it would be worth while making sure your DL account has been correctly reconciled. Most IPs will consider a settlement if you can raise the funds. Ultimately a liquidator does not wish to spend the time and money to go through legal routes, and would prefer to come to a settlement that is fair and justifiable to creditors.