We recently met a client who was referred by his brand new accountant. In fact, the accountant was not sure he wanted to take them on as his client. The management accounts were a mess, and the client had no idea where their cashflow was going. They had a company that operated two fast food outlets in major shopping centres, and were behind on rent and other creditor payments. The accountant was concerned the business was not viable and sent the husband and wife director team
Often one of our client’s biggest fears is losing the family home in a bankruptcy scenario. This situation is exacerbated when one partner in a relationship is going bankrupt and the other not, especially where children are involved. Thankfully in the first instance, whilst a bankrupt’s share in a property vests in their bankruptcy trustee upon appointment, the trustee would only look to sell the property in the event equity exists. In most cases where there are joint tenants
Often an Insolvency Practitioner (‘IP’) may state to potential clients that everything will be fine. This comment is one that I heard come from the lips of many an IP at the initial client meeting regarding the client’s personal or corporate insolvency. This leads to company directors and individuals blindly appointing the IP without fully understanding the ramifications to them personally from such an appointment. As a potential client is paying to use the services of a Liqu
Getting specialist insolvency advice prior to entering into bankruptcy can have an enormous impact on the process and outcomes. This month’s case study depicts a situation where our client entered into bankruptcy without specialist advice and how de Jonge Read assisted in dealing with issues that were subsequently faced by our client.
Earlier this year we were approached by a client who previously operated a retail outlet as a sole trader.
Due to insurmount
BACKGROUND We were approached by a client who operated a steel manufacturing business that had lost a major trading partner and subsequently endured insurmountable cash flow issues. The situation compounded causing aged creditors to blow out to 120 days. The company was issued with a creditor statutory demand (CSD) which gave 21 days to pay the debt or otherwise the company would be deemed insolvent and the client would ultimately lose control of the business. The company w