Our client came to see us the day before her bankruptcy petition was due to be heard. She had significant assets but no cash to pay the debt therefore bankruptcy would likely result in the asset value diminishing and significant costs.
Even though she was a day away from her bankruptcy petition being heard, we managed to successfully obtain an adjournment by contacting HMRC and explaining the position. She had significant returns outstanding and tax had not been paid for some time. During the adjournment we assisted our client to collate all outstanding information, assisted with getting the outstanding tax returns submitted and put forward an IVA. Despite the years of non-compliance, as the returns had been brought up to date and the IVA provided for creditors to be paid in full, the IVA was approved. Unfortunately due to the courts already being involved there were extra costs which could have been saved if she had come to us prior to the petition being issued.
Senior Manager at Portland Nicola Layland commented;
“Overall the outcome was very successful as once the claims are paid in full, the surplus will be returned to our client. Although court costs were incurred due to the petition already being in place, assets will be sold at the proper value, and with generally lower costs than a bankruptcy the surplus for the client will be better in IVA. Given the time constraints, we could not have wished for a better outcome. If the petition had not been there, the result would have been even better for our client. This is why we cannot stress enough to not waste time if you are faced with a financial problem. The key is to show good business sense by identifying any issues early and then acting upon them, which is critical."