A new pet food wholesale business owned by our client suffered a bad debt of some £10,000. The client operated on tight funding - mainly because, in spite of advice, he expanded too quickly. As a result of the debt, he had to cease trading. He was left with stock worth less than he paid for it and debts with a number of suppliers, Customs & Excise, the Inland Revenue, credit cards, the bank, and he owed us money. Potentially, our client could have lost his house and have been made bankrupt.
He could not afford the fees of an Insolvency Practitioner to help. In an effort to stop this calamitous effect on his life, we suggested, without prospect of any fees, to help formulate a credible proposal to the creditors, that would settle 25% of the debts in full and final settlement within three years, by quarterly instalments, from resources that our client could summon. The arrangement was to be supported administratively by Link throughout. Link obtained agreement from all the creditors and saw the arrangement through. We proceeded to prepare cessation accounts, filed these, obtained a significant tax refund to our client, which covered our costs of assistance to that point! The client was “over the moon,” and through his solicitor, who Link had never met, recommended an Inland Revenue investigation case. (refer case study (a) above), which we also dealt with.
Date:7 October 2002
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