Bankruptcy Case Studies

Mechanic

George a sole trader built up a huge amount of debt through loans, HP Agreements, and other borrowings from family and friends.

There was also a fall in the turnover of his business and he was struggling to pay his trade creditors as well as meeting his essential living costs.

However as time went on, George found that he was not even able to pay his mortgage and business was struggling even more with no customers at all in some weeks.

His creditors were pressuring him for payment, and threatened him that they would start legal action of he did not pay up. He received a letter from HMRC threatening to take away his assets, as he had not been paying any tax for nearly 6 months.

He contacted us for help with his tax and informed us of his situation regarding his other creditors. Having reviewed his financial circumstances, we advised that the best route for him would be to petition for his own bankruptcy before his creditors would. He was in far too much debt (over £600,000.00) and his business was not viable.

George appointed our recommended IP to petition for his bankruptcy. He was relieved from all his hostile creditors and the Trustee in Bankruptcy sold all his business assets to repay the creditors. His 5 bedroom property which he jointly owned with his wife was sold and he moved into a smaller property. Creditors were repaid and George's bankruptcy was discharged after 12 months. He now works as a mechanic for a company and is debt free.