Hi Daniel

I'm cheating because I've already spoken with you.

As discussed, HMRC are probably the only creditor to be wary of, although they do not seem to be at the debt recovery stage yet which can have a big impact on their decision.

As far as they are concerned, unfortunately there are no guarantees unlike other creditors as they normally work to a set criteria. That said, the vast majority of trust deeds I've dealt with where they have been a creditor have gone through no problem, although the timing was perhaps better in the ones that were accepted. I've found that once they have proceeded with recovery action, they are unlikely to withdraw from it.

How did you get on with the other bits and pieces?

Mark

Thanks Mark

It was good to speak with you before and we have a clear plan of action which we did not have previously. I've found the advice from our normal solicitor and accountant worse than useless.

You obviously know the full details, however it was good to be able to leave a meeting with a good clear plan which safeguarded our position and the position with the creditors as walking away from the business would have destroyed any value. It was also the first time i think we have had a decent sleep! Operating the business under the trust deed proposal seemed to be a logical and clear way to proceed without all the scare stories generated by the previous legal advice. Sometimes the simplest most logical advice is best, but you just need someone who knows their stuff to guide you through it.

I made the mistake, like most people, of spending weeks if not months searching for answers and getting continually conflicting advice from companies and web sites while getting further in debt trying to fend off creditors. I did check the DAS position for business, however the repayment period would have been unrealistic.

There has been no update from HMRC, so hopefully they will be agreeable to any proposal.

I would echo Mark's advice about HMRC, Daniel.

Whilst they can be very inflexible when people put forward repayment proposals themselves, there is usually a very different attitude if the proposals are part of a formal insolvency procedure such as a Trust Deed.

I guess that is because they know that an impartial professional insolvency practitioner is ensuring their best interests are being safeguarded.

You're right kevin. It's interesting on 2 points, firstly that sometimes it's all about timing with HMRC as I can't remember a case where they have withdrawn from a court action/petition even though a proposal has been made which would have a far better outcome or even a repayment in full over a relatively decent time period.

The more worrying thing is the advice given by other professionals which amounted to close the business and wait to see what happens next.

Using the trust deed option would allow for the continuation of the business under new controlled management to retain the going concern value until a buyer is found. The alternative would be close down and sell the contants at a small fraction of the true value.

Mark

Interesting update ( slightly ) Trust Deed received no objections whatsoever & now protected.

HMRC called following the initial circular/proposal for additional information, but no objection to the Trust Deed received which, all round, makes sense as it provides for the best return.

Quite a complicated trust deed proposal to be honest, but in my experience as long as the proposal itself works, then 99 times out of 100 creditors will agree.

Mark