Entering a Trust De...
 
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Entering a Trust Deed update

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(@daniel-pediani)
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Joined: 10 years ago
Posts: 3
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Hi all

I thought I'd give you an update on the position.

Trust Deed was signed and all creditors notified. I received an update today to advise that most of the claims had been received with no objections so far. No HMRC claim yet, however I've been advised that their claim, although the biggest, is unlikely to be sufficient for the Trust deed to fail even if they objected as they do not have enough voting power?

There was a post earlier about using free sector or private. My experience was dealing with a debt management firm based in Manchester initially who set up a proposal which dealt with some of the debts, but left out business and personal. This provided no solution whatsoever.I then spoke with my solicitor who advised to close the business and walk away, despite a going concern value of about ยฃ60k!

My accountant suggested the same advice although put me on to one of the experts on the forum as he had dealt with him previously. The result was a clear plan which dealt with all of the creditors and kept the value of the business which is being marketed for sale. The business was already being marketed with some interest, however it was only a matter of time before one of the creditors pulled the plug which would have almost certainly closed the place which would have meant there would have been nothing back to creditors.

I have probably slept better in the last 4 weeks against the last 2 years as the Trust Deed has allowed matters to be controlled to the benefit of everyone. Including me I'm not ashamed to say. Once the sale is complete, I have employment which I can start ( not self employment! )and hopefully this will be the platform to allow me to start again.

I think I've learned to speak with people who deal in specific areas and have experience in dealing with these matters and avoid web sites promising everything but delivering nothing other than a payment from your bank account.

The forum has been a great source of knowledge and comfort and reading other people's experiences convinced me that I was not alone in dealing with these problems and I would urge anyone to seek advice rather than hope the problem goes away or things will change to make matters better.


   
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Mark McFadyen
(@mark-mcfadyen)
Famed Member
Joined: 16 years ago
Posts: 4798
 

Thanks for the kind words. To be fair, it's easier to structure something like this when you've been doing it for 25 years.

I think the biggest problem is that creditors do not know the position, however the Trust Deed proposal will give them an indication of other creditors, assets and the expected outcome based on either their agreement or refusal to accept the proposal. 99% of the time, their acceptance is more beneficial than not.

The legislation has certainly changed over the years and I think it's more pro active than it used to be. Why close down a business if there is still a value there?

I'm sure it will work out fine and will obviously keep you posted.

Mark

Mark is not posting regularly in the Trust-deed.co.uk forum.


   
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