so you think the UK housing Market is going well
in that case you better read the new blog
Thursday, March 13, 2008
BBC2 Money Programme Buy to Debt part 3
Britain's deflating buy-to-let bubble. Investors are struggling with rising mortgage costs and weaker house price growth. www.housepricecrash.co.uk
BBC2 Money Programme Buy to Debt part 2
Britain's deflating buy-to-let bubble. Investors are struggling with rising mortgage costs and weaker house price growth. http://www.housepricecrash.co.uk/
BBC2 Money Programme Buy to Debt part 1
Britain's deflating buy-to-let bubble. Investors are struggling with rising mortgage costs and weaker house price growth. www.housepricecrash.co.uk
UK house price crash - quiet before the fall
There is an uncomfortable quiet right now - the quiet before the fall.
More at
Tuesday, March 4, 2008
Disqualified Directors Search
Disqualified Directors Search
can be viewed at http://www.insolvency.gov.uk/doitonline/ddbase.htm
This search facility gives information relating to disqualifications obtained in the last 6 months.
For a more complete register of directors with disqualifications currently in effect, please see the Companies House website.
Once a director has been disqualified they cannot be involved in the promotion, formation or management of a limited company for the period of their disqualification, without the permission of the court. Directors who breach their disqualification can be subject to further proceedings.
For more information see the Guide for Directors to Compulsory Liquidation.
Enforcement HotlineTo report a bankrupt acting in breach of their restriction or a director acting in breach of a disqualification contact us on : 0845 601 3546, email enforcement.hotline@insolvency.gsi.gov.uk or by post at Insolvency Service - Hotline Team, 5th Floor, Ladywood House, 45-46 Stephenson Street, Birmingham, B2 4UZ
The information contained here is regularly updated. However occasional inaccuracies do occur. If you believe the pages contain any errors, please email Directors Search with the error that you have found.
© Crown copyright 2006 copyright notice - Crown copyright material is reproduced with the permission of the Controller of HMSO and the Queen’s Printer for Scotland
Full details can be viewed at http://www.insolvency.gov.uk
can be viewed at http://www.insolvency.gov.uk/doitonline/ddbase.htm
This search facility gives information relating to disqualifications obtained in the last 6 months.
For a more complete register of directors with disqualifications currently in effect, please see the Companies House website.
Once a director has been disqualified they cannot be involved in the promotion, formation or management of a limited company for the period of their disqualification, without the permission of the court. Directors who breach their disqualification can be subject to further proceedings.
For more information see the Guide for Directors to Compulsory Liquidation.
Enforcement HotlineTo report a bankrupt acting in breach of their restriction or a director acting in breach of a disqualification contact us on : 0845 601 3546, email enforcement.hotline@insolvency.gsi.gov.uk or by post at Insolvency Service - Hotline Team, 5th Floor, Ladywood House, 45-46 Stephenson Street, Birmingham, B2 4UZ
The information contained here is regularly updated. However occasional inaccuracies do occur. If you believe the pages contain any errors, please email Directors Search with the error that you have found.
© Crown copyright 2006 copyright notice - Crown copyright material is reproduced with the permission of the Controller of HMSO and the Queen’s Printer for Scotland
Full details can be viewed at http://www.insolvency.gov.uk
Director disqualification and restrictions > I have been disqualified
Director disqualification and restrictions > I have been disqualified
A court has made, or is going to make a disqualification order against you or you have given a disqualification undertaking to the Secretary of State, which has been accepted. These are very serious matters. You could go to prison if you contravene the order or undertaking.
The order or undertaking will be registered at Companies House, which monitors new directorships and provides details of disqualified directors on request.
This publication gives you some idea of what the order or undertaking means. It does not give a complete list of everything you must and must not do, nor does it give you legal advice.
To understand exactly how the order or undertaking affects you, you should always ask your solicitor or an insolvency practitioner.
What am I not allowed to do?
While the order or undertaking is in force, it stops you acting as if you were a director. So you cannot avoid the order or undertaking by simply changing your job description.
The order or undertaking also means that you must not get other people to manage a company under your instructions.
The order or undertaking does not stop you from having a job with a company, but unless you have court permission it does stop you:
being a director of a company;
acting as receiver of a company's property;
being concerned in or taking part in the promotion, formation or management of a company
and you must not act as an insolvency practitioner.
The order or undertaking does not stop you carrying on business as a sole trader or in partnership with others but, unless you have court permission, you must not be a member of or be concerned or take part in the promotion, formation or management of a limited liability partnership.
What does ‘company’ mean?
You must not do any of the prohibited acts listed under the previous heading in relation to a company formed in England and Wales, or in Scotland.
You must not do any of the prohibited acts in relation to a foreign company if:
it is registered here; or
it has a sufficient connection here (for example, if it carries on business or has assets here) even if it is not registered here.
You must not do any of the prohibited acts in relation to a building society or an incorporated friendly society.
You must not hold various other offices, such as the trustee of a charity: always take professional advice first.
What happens if I contravene the order or undertaking?
You are then committing a criminal offence and you could go to prison for up to 2 years and face a fine.
The Insolvency Service operates a 24-hour telephone hotline to enable the public to report breaches of these orders and undertakings.
If you contravene the order or undertaking, you could also become personally liable for any debts of the company which it incurs while you contravene the order or undertaking.
Anybody who actions your instructions may also be personally liable.
If the order has been made against, or the undertaking given by, a corporate director, and that corporation contravenes the order or undertaking, then its officers or managers can be punished as if the order or undertaking applied to them personally.
Can I ask for permission to act in a way prohibited by the order or the undertaking?
You can ask the court for permission to become a director of a company or do anything else that the order or undertaking prevents. However, the court cannot give you permission to act as an insolvency practitioner.
You need to satisfy the court that you have a reasonable need to do what you are asking - not just that you want to do it.
You also have to satisfy the court that, if it gives you the permission you want, the public will be adequately protected. The court may require safeguards and may impose conditions on you.
If you want to ask for permission, you will need to make a formal application to the court.
What is the likely period of disqualification?
The minimum period of disqualification is 2 years and the maximum 15 years.
A disqualification order usually carries with it an order to pay the costs and expenses of the Secretary of State or the Official Receiver or both.
Further Information
For more information on the effect of a disqualification order or undertaking, see our publications page, where you will find 'A guide for directors', 'Company Directors Disqualification Act 1986 & Failed Companies' & 'Company Directors Disqualification Act 1986 and Disqualified Directors'
© Crown copyright 2006 copyright notice - Crown copyright material is reproduced with the permission of the Controller of HMSO and the Queen’s Printer for Scotland
Full details can be viewed at http://www.insolvency.gov.uk
A court has made, or is going to make a disqualification order against you or you have given a disqualification undertaking to the Secretary of State, which has been accepted. These are very serious matters. You could go to prison if you contravene the order or undertaking.
The order or undertaking will be registered at Companies House, which monitors new directorships and provides details of disqualified directors on request.
This publication gives you some idea of what the order or undertaking means. It does not give a complete list of everything you must and must not do, nor does it give you legal advice.
To understand exactly how the order or undertaking affects you, you should always ask your solicitor or an insolvency practitioner.
What am I not allowed to do?
While the order or undertaking is in force, it stops you acting as if you were a director. So you cannot avoid the order or undertaking by simply changing your job description.
The order or undertaking also means that you must not get other people to manage a company under your instructions.
The order or undertaking does not stop you from having a job with a company, but unless you have court permission it does stop you:
being a director of a company;
acting as receiver of a company's property;
being concerned in or taking part in the promotion, formation or management of a company
and you must not act as an insolvency practitioner.
The order or undertaking does not stop you carrying on business as a sole trader or in partnership with others but, unless you have court permission, you must not be a member of or be concerned or take part in the promotion, formation or management of a limited liability partnership.
What does ‘company’ mean?
You must not do any of the prohibited acts listed under the previous heading in relation to a company formed in England and Wales, or in Scotland.
You must not do any of the prohibited acts in relation to a foreign company if:
it is registered here; or
it has a sufficient connection here (for example, if it carries on business or has assets here) even if it is not registered here.
You must not do any of the prohibited acts in relation to a building society or an incorporated friendly society.
You must not hold various other offices, such as the trustee of a charity: always take professional advice first.
What happens if I contravene the order or undertaking?
You are then committing a criminal offence and you could go to prison for up to 2 years and face a fine.
The Insolvency Service operates a 24-hour telephone hotline to enable the public to report breaches of these orders and undertakings.
If you contravene the order or undertaking, you could also become personally liable for any debts of the company which it incurs while you contravene the order or undertaking.
Anybody who actions your instructions may also be personally liable.
If the order has been made against, or the undertaking given by, a corporate director, and that corporation contravenes the order or undertaking, then its officers or managers can be punished as if the order or undertaking applied to them personally.
Can I ask for permission to act in a way prohibited by the order or the undertaking?
You can ask the court for permission to become a director of a company or do anything else that the order or undertaking prevents. However, the court cannot give you permission to act as an insolvency practitioner.
You need to satisfy the court that you have a reasonable need to do what you are asking - not just that you want to do it.
You also have to satisfy the court that, if it gives you the permission you want, the public will be adequately protected. The court may require safeguards and may impose conditions on you.
If you want to ask for permission, you will need to make a formal application to the court.
What is the likely period of disqualification?
The minimum period of disqualification is 2 years and the maximum 15 years.
A disqualification order usually carries with it an order to pay the costs and expenses of the Secretary of State or the Official Receiver or both.
Further Information
For more information on the effect of a disqualification order or undertaking, see our publications page, where you will find 'A guide for directors', 'Company Directors Disqualification Act 1986 & Failed Companies' & 'Company Directors Disqualification Act 1986 and Disqualified Directors'
© Crown copyright 2006 copyright notice - Crown copyright material is reproduced with the permission of the Controller of HMSO and the Queen’s Printer for Scotland
Full details can be viewed at http://www.insolvency.gov.uk
Director disqualification and restrictions > What is director disqualification?
Director disqualification and restrictions > What is director disqualification?
A disqualification order is made by the court under the Company Directors Disqualification Act 1986. The Act applies not only to a person who has been formally appointed as a director but also to those people who have carried out the functions of a director and to shadow directors.
Without specific permission of the court, it disqualifies a person from:
acting as a director of a company
taking part, directly or indirectly, in the promotion, formation or management of a company
being a liquidator or an administrator of a company
being a receiver or manager of a company's property.
An order for disqualification can be made under a number of different sections of the Company Director Disqualification Act 1986 (see also section 4 - Criminal proceedings). The order will specify the period of disqualification. For orders made against an unfit director of an insolvent company, there is a minimum period of 2 years and a maximum of 15 years.
In April 2001 disqualification undertakings were introduced, which are an administrative equivalent of a disqualification order. An undertaking may be given to the Secretary of State which has the same effect as a disqualification order, but do not involve court proceedings.
When can disqualification occur?
When a company has failed, the OR (or IP in a creditors' voluntary liquidation, an administrative receivership or an administration) has to send the Secretary of State a report on the conduct of all directors who were in office in the last 3 years of the company's trading. The Secretary of State has to decide whether it is in the public interest to seek a disqualification order. Any application is heard and decided by the court.
Examples of conduct which may lead to disqualification include:
continuing to trade to the detriment of creditors at a time when the company was insolvent
failure to keep proper accounting records
failure to prepare and file accounts or make returns to Companies House
failure to submit tax returns or pay over to the Crown tax or other money due
failure to co-operate with the OR/IP.
How will I know if a disqualification order is to be sought against me?
Notification of a decision to apply for a disqualification order will be sent to the last address you provided to Companies House or to the OR/IP. The application for disqualification has to be made within 2 years of the date of the winding-up order (or any earlier voluntary liquidation, administrative receivership or administration), unless the court extends the time.
What happens after an application for disqualification is made?
The OR will make a report to the court on the conduct of the directors and send a copy to them. The directors will have the opportunity to give the court explanations or reasons for their actions - but may do so by a statement of truth (a written account of the relevant facts which is sworn on oath or affirmed, usually before a solicitor). There may also be statements of truth from other people (such as the company's bankers, accountants and creditors) presented as evidence to support the case for or against the directors. The court will then decide whether the conduct makes the directors unfit to act in the management of a company and, if so, for how long they should be disqualified.
Disqualification proceedings are taken under civil law, not criminal law.
At any stage in these proceedings you may give an undertaking to the Secretary of State that has the same effect as a disqualification order and will put a stop to the court proceedings.
What is the purpose of the CDDA?
It aims to maintain the integrity of the business environment. Those who become directors of limited companies should:
carry out their duties with responsibility; and
exercise adequate skill and care with proper regard to the interests of the company’s creditors and employees.
The majority of directors do this effectively, but the CDDA is a powerful tool against those who abuse the privilege of limited liability. The CDDA applies not just to persons who are formally appointed as directors but to those who carry out the functions of directors.
When can the courts make disqualification orders under the CDDA?
The court can do this for example, for:
certain criminal offences connected with the Companies Acts legislation;
wrongful trading (such as trading while insolvent;
failure to comply with filing requirements under the Companies Act Legislation;
unfit conduct in insolvent companies.
More than 9,600 disqualification orders have been made because of unfit conduct in failed insolvent companies since 1986, for periods up to the statutory maximum of 15 years.
How do disqualification proceedings begin?
If there is any unfit conduct, then the liquidator, administrative receiver, administrator or Official Receiver has a duty to send the Secretary of State for Business, Enterprise and Regulatory Reform a report on the conduct of all directors who were in office in the last 3 years of the company's trading.
The Secretary of State has to decide whether it is in the public interest to seek a disqualification order against a director.
What type of conduct is reported to the Secretary of State?
Examples of the most commonly reported conduct are:
allowing the company to continue to trade when it was unable to pay its debts;
failure to keep proper accounting records;
failure to prepare and file accounts or make returns to Companies House; and
failure to submit returns or pay the Crown any tax due.
Who brings the proceedings in relation to a failed company?
The proceedings are brought by the Secretary of State for Business, Enterprise and Regulatory Reform or, usually in compulsory winding-up cases, by the Official Receiver at the direction of the Secretary of State. The matter is heard, and decided by the court, unless the Secretary of State accepts a disqualification undertaking from a director.
What is the likely period of disqualification?
The minimum period of disqualification is 2 years and the maximum 15 years.
A disqualification order usually carries with it an order to pay the costs and expenses of the Secretary of State or the Official Receiver or both.
What is the effect of a disqualification order or disqualification undertaking?
Unless he or she has court permission, the person is disqualified for the period stated in the order or undertaking from:
being a director of a company;
acting as receiver of a company's property;
directly or indirectly being concerned or taking part in the promotion, formation or management of a company; or
being a member of or being concerned or taking part in the promotion, formation or management of a limited liability partnership.
He or she is also absolutely disqualified during the disqualification period from acting as an insolvency practitioner.
Further Information
For more information on the effect of a disqualification order or undertaking, see our publications page, where you will find 'A guide for directors', 'CDDA & Failed Companies' & 'CDDA and Disqualified Directors'
© Crown copyright 2006 copyright notice - Crown copyright material is reproduced with the permission of the Controller of HMSO and the Queen’s Printer for Scotland
Full details can be viewed at http://www.insolvency.gov.uk
A disqualification order is made by the court under the Company Directors Disqualification Act 1986. The Act applies not only to a person who has been formally appointed as a director but also to those people who have carried out the functions of a director and to shadow directors.
Without specific permission of the court, it disqualifies a person from:
acting as a director of a company
taking part, directly or indirectly, in the promotion, formation or management of a company
being a liquidator or an administrator of a company
being a receiver or manager of a company's property.
An order for disqualification can be made under a number of different sections of the Company Director Disqualification Act 1986 (see also section 4 - Criminal proceedings). The order will specify the period of disqualification. For orders made against an unfit director of an insolvent company, there is a minimum period of 2 years and a maximum of 15 years.
In April 2001 disqualification undertakings were introduced, which are an administrative equivalent of a disqualification order. An undertaking may be given to the Secretary of State which has the same effect as a disqualification order, but do not involve court proceedings.
When can disqualification occur?
When a company has failed, the OR (or IP in a creditors' voluntary liquidation, an administrative receivership or an administration) has to send the Secretary of State a report on the conduct of all directors who were in office in the last 3 years of the company's trading. The Secretary of State has to decide whether it is in the public interest to seek a disqualification order. Any application is heard and decided by the court.
Examples of conduct which may lead to disqualification include:
continuing to trade to the detriment of creditors at a time when the company was insolvent
failure to keep proper accounting records
failure to prepare and file accounts or make returns to Companies House
failure to submit tax returns or pay over to the Crown tax or other money due
failure to co-operate with the OR/IP.
How will I know if a disqualification order is to be sought against me?
Notification of a decision to apply for a disqualification order will be sent to the last address you provided to Companies House or to the OR/IP. The application for disqualification has to be made within 2 years of the date of the winding-up order (or any earlier voluntary liquidation, administrative receivership or administration), unless the court extends the time.
What happens after an application for disqualification is made?
The OR will make a report to the court on the conduct of the directors and send a copy to them. The directors will have the opportunity to give the court explanations or reasons for their actions - but may do so by a statement of truth (a written account of the relevant facts which is sworn on oath or affirmed, usually before a solicitor). There may also be statements of truth from other people (such as the company's bankers, accountants and creditors) presented as evidence to support the case for or against the directors. The court will then decide whether the conduct makes the directors unfit to act in the management of a company and, if so, for how long they should be disqualified.
Disqualification proceedings are taken under civil law, not criminal law.
At any stage in these proceedings you may give an undertaking to the Secretary of State that has the same effect as a disqualification order and will put a stop to the court proceedings.
What is the purpose of the CDDA?
It aims to maintain the integrity of the business environment. Those who become directors of limited companies should:
carry out their duties with responsibility; and
exercise adequate skill and care with proper regard to the interests of the company’s creditors and employees.
The majority of directors do this effectively, but the CDDA is a powerful tool against those who abuse the privilege of limited liability. The CDDA applies not just to persons who are formally appointed as directors but to those who carry out the functions of directors.
When can the courts make disqualification orders under the CDDA?
The court can do this for example, for:
certain criminal offences connected with the Companies Acts legislation;
wrongful trading (such as trading while insolvent;
failure to comply with filing requirements under the Companies Act Legislation;
unfit conduct in insolvent companies.
More than 9,600 disqualification orders have been made because of unfit conduct in failed insolvent companies since 1986, for periods up to the statutory maximum of 15 years.
How do disqualification proceedings begin?
If there is any unfit conduct, then the liquidator, administrative receiver, administrator or Official Receiver has a duty to send the Secretary of State for Business, Enterprise and Regulatory Reform a report on the conduct of all directors who were in office in the last 3 years of the company's trading.
The Secretary of State has to decide whether it is in the public interest to seek a disqualification order against a director.
What type of conduct is reported to the Secretary of State?
Examples of the most commonly reported conduct are:
allowing the company to continue to trade when it was unable to pay its debts;
failure to keep proper accounting records;
failure to prepare and file accounts or make returns to Companies House; and
failure to submit returns or pay the Crown any tax due.
Who brings the proceedings in relation to a failed company?
The proceedings are brought by the Secretary of State for Business, Enterprise and Regulatory Reform or, usually in compulsory winding-up cases, by the Official Receiver at the direction of the Secretary of State. The matter is heard, and decided by the court, unless the Secretary of State accepts a disqualification undertaking from a director.
What is the likely period of disqualification?
The minimum period of disqualification is 2 years and the maximum 15 years.
A disqualification order usually carries with it an order to pay the costs and expenses of the Secretary of State or the Official Receiver or both.
What is the effect of a disqualification order or disqualification undertaking?
Unless he or she has court permission, the person is disqualified for the period stated in the order or undertaking from:
being a director of a company;
acting as receiver of a company's property;
directly or indirectly being concerned or taking part in the promotion, formation or management of a company; or
being a member of or being concerned or taking part in the promotion, formation or management of a limited liability partnership.
He or she is also absolutely disqualified during the disqualification period from acting as an insolvency practitioner.
Further Information
For more information on the effect of a disqualification order or undertaking, see our publications page, where you will find 'A guide for directors', 'CDDA & Failed Companies' & 'CDDA and Disqualified Directors'
© Crown copyright 2006 copyright notice - Crown copyright material is reproduced with the permission of the Controller of HMSO and the Queen’s Printer for Scotland
Full details can be viewed at http://www.insolvency.gov.uk
Companies Investigation Branch
Companies Investigation Branch
About the Companies Investigation Branch
Companies Investigation Branch (CIB) is part of the regulatory arm of the Department for Business, Enterprise & Regulatory Reform (BERR). Prior to the creation of BERR, it was part of the Department of Trade & Industry.
Although CIB is located within the Insolvency Service, an Executive Agency of BERR, it is not limited to companies that have become insolvent. In fact, most of its investigations are into companies that are actively trading. Please see our “Frequently Asked Questions” for details of what we can and cannot investigate.
In a free market, all those who deal with companies whether as investors, suppliers or consumers should be protected from misconduct or unscrupulous practices.
We all need to feel confident in our dealings with the business community. As investors, creditors and consumers, we need to know our money is secure, and have trust in corporate Britain.
Without this confidence, investment, sales and markets fall. We need to keep promoting confidence.
Not only is confidence enhanced by transparency and accountability, but by an effective and discerning system of regulation. Our approach to this is to take a proportionate and realistic view of issues brought to our attention, and to investigate aspects of corporate behaviour which might harm both the business community and the public generally.
Under the Companies Acts we have the power to investigate companies. When we receive information about the behaviour of particular companies we will assess that information to see whether or not it would be appropriate for us to attend on that company, and ask them to provide us with documents and information. This allows us to come to a view as to whether or not there are grounds for action in the wider public interest and decide what action we should take.
We do not carry out criminal investigations - those are better left to the police - although our investigations may provide the basis for a subsequent criminal enquiry. We cannot intervene in any dispute between individuals and a company, be they creditors, shareholders or the company’s own management - although we may investigate the issues giving rise to the dispute if there is a wider public interest in doing so.
Our investigations are confidential, and that is why we do not tell complainants whether or not we are going to investigate, or, when we do decide to investigate, tell the company’s directors the reasons why we are doing so or who has complained. We also carry out a risk assessment of each case to ensure that those cases with a higher level of risk to the public are given priority.
Other Information
What we do
What we do not do
How we do it
What can happen
The Law
FAQ's
How to complain
Contact Us
Complaint Form
Current Press Releases (from April 2006)
Press Releases
Publishing Scams
Inspectors' Reports
Related Links
© Crown copyright 2006 copyright notice - Crown copyright material is reproduced with the permission of the Controller of HMSO and the Queen’s Printer for Scotland
Full details can be viewed at http://www.insolvency.gov.uk
About the Companies Investigation Branch
Companies Investigation Branch (CIB) is part of the regulatory arm of the Department for Business, Enterprise & Regulatory Reform (BERR). Prior to the creation of BERR, it was part of the Department of Trade & Industry.
Although CIB is located within the Insolvency Service, an Executive Agency of BERR, it is not limited to companies that have become insolvent. In fact, most of its investigations are into companies that are actively trading. Please see our “Frequently Asked Questions” for details of what we can and cannot investigate.
In a free market, all those who deal with companies whether as investors, suppliers or consumers should be protected from misconduct or unscrupulous practices.
We all need to feel confident in our dealings with the business community. As investors, creditors and consumers, we need to know our money is secure, and have trust in corporate Britain.
Without this confidence, investment, sales and markets fall. We need to keep promoting confidence.
Not only is confidence enhanced by transparency and accountability, but by an effective and discerning system of regulation. Our approach to this is to take a proportionate and realistic view of issues brought to our attention, and to investigate aspects of corporate behaviour which might harm both the business community and the public generally.
Under the Companies Acts we have the power to investigate companies. When we receive information about the behaviour of particular companies we will assess that information to see whether or not it would be appropriate for us to attend on that company, and ask them to provide us with documents and information. This allows us to come to a view as to whether or not there are grounds for action in the wider public interest and decide what action we should take.
We do not carry out criminal investigations - those are better left to the police - although our investigations may provide the basis for a subsequent criminal enquiry. We cannot intervene in any dispute between individuals and a company, be they creditors, shareholders or the company’s own management - although we may investigate the issues giving rise to the dispute if there is a wider public interest in doing so.
Our investigations are confidential, and that is why we do not tell complainants whether or not we are going to investigate, or, when we do decide to investigate, tell the company’s directors the reasons why we are doing so or who has complained. We also carry out a risk assessment of each case to ensure that those cases with a higher level of risk to the public are given priority.
Other Information
What we do
What we do not do
How we do it
What can happen
The Law
FAQ's
How to complain
Contact Us
Complaint Form
Current Press Releases (from April 2006)
Press Releases
Publishing Scams
Inspectors' Reports
Related Links
© Crown copyright 2006 copyright notice - Crown copyright material is reproduced with the permission of the Controller of HMSO and the Queen’s Printer for Scotland
Full details can be viewed at http://www.insolvency.gov.uk
Compulsory Liquidation > What is Compulsory Liquidation?
Compulsory Liquidation > What is Compulsory Liquidation?
What types of liquidation are there?
Members' voluntary liquidation (or members' voluntary winding up) - this is when the shareholders of a company decide to put it into liquidation, and there are enough assets to pay all the debts of the company, i.e. the company is solvent.
Creditors' voluntary liquidation (or creditors' voluntary winding up) - this is when the shareholders of a company decide to put the company into liquidation, but there are not enough assets to pay all the creditors, i.e. the company is insolvent.
Compulsory liquidation (or compulsory winding up) - this is when the court makes an order for the company to be wound up (a 'winding-up order') on the petition of an appropriate person. If there is more than one director, all the directors must jointly present the winding-up petition - a single director cannot present a winding-up petition.
If you are a director or a shareholder and you are also a creditor of your company, you may wish to present a winding-up petition on the grounds that the company cannot pay its debts. Please read our publication 'Dealing with debt - How to wind up a company that owes you money' for more information.
Where can I get advice about liquidation?
Before you take any action to put a company into liquidation, you should obtain your own legal or financial advice about this procedure and any other options available to you. You can get advice from your local Citizens Advice Bureau, a solicitor, a qualified accountant, an authorised insolvency practitioner, any reputable financial adviser or a debt advice centre.
What are the alternatives to liquidation?
There are 3 possibilities:
Informal arrangement - the company could consider writing to all its creditors to see if a mutually acceptable agreement can be reached. It is advisable to include a timetable of when payments will be made.
Company voluntary arrangement (CVA) - this is a formal version of the arrangement described above. The directors would need to apply to the court with the help of an authorised insolvency practitioner, who would supervise the arrangement and pay the creditors in line with the accepted proposals.
Administration - this is a court procedure that gives the company some breathing space from any action by creditors. A court can grant an administration order to enable the company to:
survive, in whole or in part, as an ongoing business;
organise a voluntary arrangement or compromise with its creditors;
get a better realisation of assets than would be possible if the company went into liquidation.
The procedure is managed by an administrator, who must be an authorised insolvency practitioner.
Further Information
You can find further information in the publication 'Dealing with Debt - How to wind up my own company'
© Crown copyright 2006 copyright notice - Crown copyright material is reproduced with the permission of the Controller of HMSO and the Queen’s Printer for Scotland
Full details can be viewed at http://www.insolvency.gov.uk
What types of liquidation are there?
Members' voluntary liquidation (or members' voluntary winding up) - this is when the shareholders of a company decide to put it into liquidation, and there are enough assets to pay all the debts of the company, i.e. the company is solvent.
Creditors' voluntary liquidation (or creditors' voluntary winding up) - this is when the shareholders of a company decide to put the company into liquidation, but there are not enough assets to pay all the creditors, i.e. the company is insolvent.
Compulsory liquidation (or compulsory winding up) - this is when the court makes an order for the company to be wound up (a 'winding-up order') on the petition of an appropriate person. If there is more than one director, all the directors must jointly present the winding-up petition - a single director cannot present a winding-up petition.
If you are a director or a shareholder and you are also a creditor of your company, you may wish to present a winding-up petition on the grounds that the company cannot pay its debts. Please read our publication 'Dealing with debt - How to wind up a company that owes you money' for more information.
Where can I get advice about liquidation?
Before you take any action to put a company into liquidation, you should obtain your own legal or financial advice about this procedure and any other options available to you. You can get advice from your local Citizens Advice Bureau, a solicitor, a qualified accountant, an authorised insolvency practitioner, any reputable financial adviser or a debt advice centre.
What are the alternatives to liquidation?
There are 3 possibilities:
Informal arrangement - the company could consider writing to all its creditors to see if a mutually acceptable agreement can be reached. It is advisable to include a timetable of when payments will be made.
Company voluntary arrangement (CVA) - this is a formal version of the arrangement described above. The directors would need to apply to the court with the help of an authorised insolvency practitioner, who would supervise the arrangement and pay the creditors in line with the accepted proposals.
Administration - this is a court procedure that gives the company some breathing space from any action by creditors. A court can grant an administration order to enable the company to:
survive, in whole or in part, as an ongoing business;
organise a voluntary arrangement or compromise with its creditors;
get a better realisation of assets than would be possible if the company went into liquidation.
The procedure is managed by an administrator, who must be an authorised insolvency practitioner.
Further Information
You can find further information in the publication 'Dealing with Debt - How to wind up my own company'
© Crown copyright 2006 copyright notice - Crown copyright material is reproduced with the permission of the Controller of HMSO and the Queen’s Printer for Scotland
Full details can be viewed at http://www.insolvency.gov.uk
Land Bank
Looking for land with or without planning anywhere in the UK ?
try http://www.montague-lloyd.com/Land-Bank.htm
try http://www.montague-lloyd.com/Land-Bank.htm
Friday, February 22, 2008
More homeowners in debt trouble
More homeowners in debt trouble
Concerns over debt levels are rising
Mortgage repossession orders during the past three months in England and Wales were up 66% on a year ago to nearly 20,000, official figures have shown.
Repossession orders have been on the increase since early 2004.
The figures show the total number of homeowners being taken to court by lenders pursuing mortgage debt rose 55% to nearly 30,000.
The Department for Constitutional Affairs figures will add to concerns about debt and the housing market.
"The increase in mortgage possessions fits with the slowdown in house price inflation," Alan Clarke, UK economist at BNP Paribas, said.
"The conclusion is there are still signs of financial stress among homeowners," he added.
Lower than average
In July, the Council for Mortgage Lenders (CML) said there were 4,640 homes repossessed during the first half of 2005 compared with 3,070 for the previous six months.
Lenders have blamed rising repossessions on five interest rate rises between November 2003 and August 2004.
In August this year, UK interest rates were cut by the Bank of England's Monetary Policy Committee from 4.75% to 4.5%.
The CML has predicted that more than 10,000 homes will be repossessed by the end of the year.
However, repossessions are still set to be much lower than the long-term average of 30,000, or the peak of 70,000 a year recorded during the early 1990s property market crash.
Enforcement
It does not automatically follow that repossession orders, as recorded by the Department for Constitutional Affairs, result in actual repossession.
Generally, the number of court repossession orders is far higher than actual repossessions because often the borrower agrees to pay or a deal is made so the order is not enforced.
A lender may also obtain more than one order for each property if a previous order has lapsed.
What do you think about these figures? Have you experienced home repossession? Do you know anyone who has? What should be done about this problem?
Your comments:
My wife and I live in a small two-bed starter property and we need to move to a lager property due to a new arrival this year, we cannot move up the property ladder because of the massive price difference between the two and three bedroom houses. We are hoping for a housing market crash so we can move on.
Steve, Boston
Perhaps the Government should consider setting a cap on rents for certain areas of the country. This would discourage greedy landlords buying up multiple properties and then charging extortionate rents for those that can least afford it. We need realistic rents in this country so that people have a real choice on whether to buy or rent. Greedy landlords aren't helping anyone but themselves and the loan companies.
Paul McDonald, Welwyn Garden City, UK
As a young teacher (married with two small children) buying a house big enough for a family of four, is completely out of the question. Even in years to come my wages will not be sufficient to cover a mortgage. In fact currently we qualify for some housing benefit for our two bed house... I can not even afford to rent a bigger place, whilst earning a reasonable wage! We are now planning to immigrate as soon as possible to enable us the live in a house big enough for all of us! No easy choice¿ the thought of leaving our home country makes us all very sad...
Kai, Derby, Derbyshire
It makes me laugh so many people out there looking to blame someone else rather than taking responsibility of their own actions. I agree there should be some sort of 'cap' on the amount borrowed which would have helped control house prices / debt over the years but there wasn't. Ultimately the responsibility lies with the person signing the contract; a simple question of can we actually afford this on our income needs to be asked. As for the guy who said the lender should be liable for any amounts borrowed over 3 x salary....what a joke, maybe he should learn to say no!
Ian, Kent
With my wife we are about to complete on our first house. If it wasn't for the help of family members who made it possible for us to have a 30% deposit, we would have never made it. We are higher rate tax payers and the repayments will be a bit higher than the rent, but manageable. I think people need to take more responsibility for their actions and stop blaming others (banks, government, advisers) We saved as much as we could for four years and now we can get on the ladder.
Juan C, Surrey, UK
First and foremost, people must take responsibility for their own actions rather than blame others, which seem ever more the case. Property prices have gone up as much as they have because we, the purchasers, are willing to pay. Like it or not, as new building land in the UK becomes rarer, property can only get more expensive. If people wish to own property they need to work for it, with both partners working full time, and save for it, cutting out the unnecessary luxuries. If that's too much too ask, its not the governments fault.
Max, Bury St Edmunds, Suffolk
House prices are at unsustainable levels due to a combination of cheap debt, lax lending, and people's naivety thinking markets only go up. Buy-to-let investors have kept the market propped up until now, they are fast disappearing. Government is scared of a house crash hence their ill advised SIPP legislation attempting to prop up the creaking edifice a while longer- just delaying the inevitable.
Andy, Richmond, Surrey
I left England and bought a house in Germany. It is an accepted fact here that as your house becomes older the price is likely to depreciate or hopefully retain the same value. Of course the same city centre prices apply here as well but the market as a whole is more stable and government tax breaks still exist.
Mike James, Langenfeld, Germany
I think the real problem stems from how easy it is to re-mortgage your home. We did it in the past and we paid off credit cards, etc. and had a really good holiday that year. We didn't address the real issue until recently, that we weren't using our credit wisely. We straightened ourselves out and life is much better now. I truly don't think this is about first time mortgages but what happens when a remortgage kicks in.
Val, USA
I have saved very hard and had some very well paid jobs (above the national average) yet I am not able to purchase a property unless I moved out of London. Then I have the inconvenience of a long journey and all the risks that presents compounded by high transport costs. It is very difficult as a single person to get on the property ladder relying on a salary only. I have a good deposit but alas it is still inadequate unless I double my salary and take out a 30 year plus loan.
Jo, London
Most other countries have borrowed to prop up the economy. This government has preferred to encourage individuals to borrow instead, to fuel consumer spending and the economy. As the consumer credit levels reach their maximum, the harsh reality of this error will effect not just the country but also all businesses and individuals. This is going to get nastier yet.
Graham Found, Banwell, North Somerset
House prices are ludicrously high, and this will not improve when the government gives tax breaks for wealthy people to put homes into their pension schemes at the expense of normal people who just want a home. However, people do also have elevated expectations for their lifestyles - designer-label clothes and cars and so on - which can't help them to reduce their debt. It's hard to apportion blame in such a silly situation but the government needs to do something (if only to abandon its pension tax-break plan) if we are not to see a lot of families without proper homes in the future.
David, Surrey
I earn just over 40,000 GBP a year, but cannot afford to buy a house. Because of earlier financial difficulties we didn't buy a house when we should have, and now have 2 kids. A three bedroom house, even in a poor area in town, is 150,000 pounds which is more than three and half times my income and a lot of money to repay each month as a mortgage. It seems crazy that property prices have reached the point where people paying the higher rate of tax cannot afford to get on the property ladder.
Ian Matthews, Shrewsbury, UK
I work for a financial institution that takes responsible lending seriously. Unfortunately, too many institutions are so driven by their own sales/growth targets and the problems faced by increasing house prices that they have relaxed their lending policies to enable people to borrow far more than they would have been able to over latter years. A number of people probably haven't worked out how much of an increase in monthly commitments a 1%, 2% hike in base rate makes. Ultimately, the borrower must take full responsibility for their commitment, but I believe that the lenders have a duty to lend responsibly based on their income.
Gareth, Swansea
I am an independent financial adviser and I'll accept that it is difficult for first time buyers to get on the property ladder. However, I don't often see first time buyers sacrificing any luxuries or modifying their lifestyles to save for their deposit. Is it peer pressure, lack of guidance from parents or a general lack of understanding of debt that makes this the case? I don't know! In general people need to be more responsible for their own actions and not blame the banks, the government or the advisers for what is often a self generated problem.
Neil Burton, Tunbridge Wells, Kent
I had 14 different credit cards three years ago totalling £114,000! Obviously I couldn't cope with the repayments and got a Trust Deed. This helped to get my finances back in order and three years later I am much more credit savvy. But, the finance companies and banks etc keep offering more and more credit. They have to stop or be stopped by government legislation. No-one should have more debt than, say, three times their earnings (including mortgage ). If someone lends a person over and above this level, then the lender should be liable! The number of people who are really struggling is way above the estimates from the government who don't want to admit to the problem. Pete, Hamilton, Scotland
I find it laughable that the lenders blame interest rate rises. They know better than anybody that 4.75% is still a historically low rate. Surely anybody taking out a mortgage should ensure they can afford at least a 2% rise in interest rates. I think we all know that high house prices are the problem here but the housing industry dare not admit it as their profits are at stake.
Andy, Beds
I think people should start to take responsibility for there own actions. No estate agent or bank person was there holding a gun to there head forcing them to take a mortgage that they could not pay for. These people get themselves in to debt buy maxing out all available credit then when the interest goes up they can no longer service the debt and are all surprised by this.
Christopher, Canada
Thank goodness that we are beginning to face up to our financial responsibilities. My son and his partner were able to borrow a horrific sum of money to buy a new house and are struggling to make ends meet. How many others are in a similar position but are simply too embarrassed to admit it?
Betty Middleton, Lancaster
We have become too focused on home ownership. I would be content to rent if the rent I paid was affordable (but I would be hard pushed to find as nice a home to live in the in the private rented sector for the same amount my mortgage costs me) and if I felt I could stay there with some security and a landlord that kept the house up to a high standard. But that's not the way we are set up to live in the UK.
Katy, Brighton
I left England for Canada in 1999. This year I moved to Turkey. It is a sad and unfortunate fact that I will unlikely to be able to return to my homeland, for the simple reason that I can't afford a roof over my head. House prices are a millstone around the necks of the British people.
Peter Lee, Ankara, Turkey
Ultimately it's the customers responsibility to make sure they are not borrowing more than they can afford
Ifthir Ahmed-Miah, Newport, UK
It's all to easy to point the finger at financial advisers and the banks, the financial services industry is one of the most highly regulated industries in this country. Financial advisers are there to advise but ultimately it's the customers responsibility to make sure they are not borrowing more than they can afford. The government are also to blame for creating the environment for property prices to be out of reach of most First Time Buyers.
Ifthir Ahmed-Miah, Newport, UK
I work for an advice agency. Debt is on the increase make no mistake. However, there are priority and non-priority debts. Your mortgage gets paid pretty much above all else if you don't want to lose your property. Generally, problems are caused by a catalyst such as relationship breakdown/injury/unemployment etc. Payment protection insurance is, in my opinion worthless. So what are the options? Repossession!
Nick, Hackney
My house was repossessed a month ago. At the height of the property boom in early 2004 I splashed out far more than I could actually afford on a large property with the intention of selling it on at a profit. It wasn't long after that the property slowdown started but I kept hold of the property and financed the mortgage by getting myself further into debt, I was certain that the housing market would take off again and I would realise my gains. Following two years of quite harsh housing market drops in the south west I have been forced to admit defeat.
I blame myself for everything that has happened but I also think there are a lot of companies around who like to put a rosy outlook on the housing market and try to make everyone think it will always go up (estate agents, surveyors, mortgage companies), they should take part of the blame for lying to the public.
Dan, Bristol
It's another sign that that the boom in house prices is over and set for a steep fall over the next few years, just like they always have done after previous such unsustainable rises. What's more worrying this time around however is that interest rates are low, at the moment, but because of high personal debt and high cost of living, people are starting to struggle already. High prices do no-one any good. Even Estate agents are talking the market down - they need sales at any price, not high prices preventing sales.
Andrew, Lewes
Can we stop blaming always the estate agents and banks? I appreciate that they do play a big role in this mess, but why can people, for once, look at their own pockets and stop being so naive? I have finally managed to buy a property at the top of the market price, because I was fed up to pay rent and the flat I was living in was too small. I have stretched my finances as much as possible but the last thing I want is for my house to be repossessed. I live on potatoes and beans before that happens!
Tamara, Aylesbury
It is far too easy to borrow vast amounts of money
Andy New, Norwich
I work in the mortgage/financial industry and it is far too easy to borrow vast amounts of money. People can re-mortgage up to the value of potentially over inflated property prices and buy cars, go on holidays etc. This puts such a strain on individual's finances when rates change, but companies continually encourage it with promotions, low start rates and cash back. A lot of the responsibility is down to the customer to limit their borrowing and not get caught up in the 'live for today' or the mortgage marketing ploy. This also applies to the credit card and loan companies.
Andy New, Norwich, UK
I agree with Mike. The main cause lies in the LTV and imprudent leading by banks etc. Sales targets and competition have taken over from concerns about ability to service debt in the long term.
John, Kingston upon Thames, Surrey
It's nothing more than another sign of a greedy society that thinks it's acceptable to spend beyond its means. I wonder how many people who have had their homes repossessed also have unpaid credit card bills, personal loans, car finance etc.
Neil Wallace, Sheffield
I personally think that it's the mortgage agent who should be held responsible for property repossession. I know few people who have managed to borrow more then they can actually repay! Just for the sake of being on the property ladder. There are agents who can manipulate data in order to secure you the mortgage to buy your dream home. There must a law to catch these people.
Nehal, London
People are obsessed by how much their house is worth. How much money they have "made". The amount of friends I know who no longer buy houses because they would be a nice home but because it can make money. This is just pushing house prices and mortgage repayments out of control leading to this problem. There are no winners apart from the banks. I wish we could realise this and bring prices down to the level they should be.
Alex, Bromley
It goes to show that only property dealers and estate agents and banks benefit from crazy house prices. Normal people who just want somewhere to live, especially young people and young families can no longer afford to buy a house and those who's houses have gone up in value do not benefit because what can they do, sell up? And live where?
Leigh Porter, Fulham UK
The lenders tend to blame the increase in repossessions on increases in interest rates. However, if they had been more prudent in the amount that was borrowed many of these cases would not have arisen. Lenders have been too keen to provide high LTVs and income multiples.
Mike, Reading
Stop your repossession now www.capital-advantage.co.uk
Concerns over debt levels are rising
Mortgage repossession orders during the past three months in England and Wales were up 66% on a year ago to nearly 20,000, official figures have shown.
Repossession orders have been on the increase since early 2004.
The figures show the total number of homeowners being taken to court by lenders pursuing mortgage debt rose 55% to nearly 30,000.
The Department for Constitutional Affairs figures will add to concerns about debt and the housing market.
"The increase in mortgage possessions fits with the slowdown in house price inflation," Alan Clarke, UK economist at BNP Paribas, said.
"The conclusion is there are still signs of financial stress among homeowners," he added.
Lower than average
In July, the Council for Mortgage Lenders (CML) said there were 4,640 homes repossessed during the first half of 2005 compared with 3,070 for the previous six months.
Lenders have blamed rising repossessions on five interest rate rises between November 2003 and August 2004.
In August this year, UK interest rates were cut by the Bank of England's Monetary Policy Committee from 4.75% to 4.5%.
The CML has predicted that more than 10,000 homes will be repossessed by the end of the year.
However, repossessions are still set to be much lower than the long-term average of 30,000, or the peak of 70,000 a year recorded during the early 1990s property market crash.
Enforcement
It does not automatically follow that repossession orders, as recorded by the Department for Constitutional Affairs, result in actual repossession.
Generally, the number of court repossession orders is far higher than actual repossessions because often the borrower agrees to pay or a deal is made so the order is not enforced.
A lender may also obtain more than one order for each property if a previous order has lapsed.
What do you think about these figures? Have you experienced home repossession? Do you know anyone who has? What should be done about this problem?
Your comments:
My wife and I live in a small two-bed starter property and we need to move to a lager property due to a new arrival this year, we cannot move up the property ladder because of the massive price difference between the two and three bedroom houses. We are hoping for a housing market crash so we can move on.
Steve, Boston
Perhaps the Government should consider setting a cap on rents for certain areas of the country. This would discourage greedy landlords buying up multiple properties and then charging extortionate rents for those that can least afford it. We need realistic rents in this country so that people have a real choice on whether to buy or rent. Greedy landlords aren't helping anyone but themselves and the loan companies.
Paul McDonald, Welwyn Garden City, UK
As a young teacher (married with two small children) buying a house big enough for a family of four, is completely out of the question. Even in years to come my wages will not be sufficient to cover a mortgage. In fact currently we qualify for some housing benefit for our two bed house... I can not even afford to rent a bigger place, whilst earning a reasonable wage! We are now planning to immigrate as soon as possible to enable us the live in a house big enough for all of us! No easy choice¿ the thought of leaving our home country makes us all very sad...
Kai, Derby, Derbyshire
It makes me laugh so many people out there looking to blame someone else rather than taking responsibility of their own actions. I agree there should be some sort of 'cap' on the amount borrowed which would have helped control house prices / debt over the years but there wasn't. Ultimately the responsibility lies with the person signing the contract; a simple question of can we actually afford this on our income needs to be asked. As for the guy who said the lender should be liable for any amounts borrowed over 3 x salary....what a joke, maybe he should learn to say no!
Ian, Kent
With my wife we are about to complete on our first house. If it wasn't for the help of family members who made it possible for us to have a 30% deposit, we would have never made it. We are higher rate tax payers and the repayments will be a bit higher than the rent, but manageable. I think people need to take more responsibility for their actions and stop blaming others (banks, government, advisers) We saved as much as we could for four years and now we can get on the ladder.
Juan C, Surrey, UK
First and foremost, people must take responsibility for their own actions rather than blame others, which seem ever more the case. Property prices have gone up as much as they have because we, the purchasers, are willing to pay. Like it or not, as new building land in the UK becomes rarer, property can only get more expensive. If people wish to own property they need to work for it, with both partners working full time, and save for it, cutting out the unnecessary luxuries. If that's too much too ask, its not the governments fault.
Max, Bury St Edmunds, Suffolk
House prices are at unsustainable levels due to a combination of cheap debt, lax lending, and people's naivety thinking markets only go up. Buy-to-let investors have kept the market propped up until now, they are fast disappearing. Government is scared of a house crash hence their ill advised SIPP legislation attempting to prop up the creaking edifice a while longer- just delaying the inevitable.
Andy, Richmond, Surrey
I left England and bought a house in Germany. It is an accepted fact here that as your house becomes older the price is likely to depreciate or hopefully retain the same value. Of course the same city centre prices apply here as well but the market as a whole is more stable and government tax breaks still exist.
Mike James, Langenfeld, Germany
I think the real problem stems from how easy it is to re-mortgage your home. We did it in the past and we paid off credit cards, etc. and had a really good holiday that year. We didn't address the real issue until recently, that we weren't using our credit wisely. We straightened ourselves out and life is much better now. I truly don't think this is about first time mortgages but what happens when a remortgage kicks in.
Val, USA
I have saved very hard and had some very well paid jobs (above the national average) yet I am not able to purchase a property unless I moved out of London. Then I have the inconvenience of a long journey and all the risks that presents compounded by high transport costs. It is very difficult as a single person to get on the property ladder relying on a salary only. I have a good deposit but alas it is still inadequate unless I double my salary and take out a 30 year plus loan.
Jo, London
Most other countries have borrowed to prop up the economy. This government has preferred to encourage individuals to borrow instead, to fuel consumer spending and the economy. As the consumer credit levels reach their maximum, the harsh reality of this error will effect not just the country but also all businesses and individuals. This is going to get nastier yet.
Graham Found, Banwell, North Somerset
House prices are ludicrously high, and this will not improve when the government gives tax breaks for wealthy people to put homes into their pension schemes at the expense of normal people who just want a home. However, people do also have elevated expectations for their lifestyles - designer-label clothes and cars and so on - which can't help them to reduce their debt. It's hard to apportion blame in such a silly situation but the government needs to do something (if only to abandon its pension tax-break plan) if we are not to see a lot of families without proper homes in the future.
David, Surrey
I earn just over 40,000 GBP a year, but cannot afford to buy a house. Because of earlier financial difficulties we didn't buy a house when we should have, and now have 2 kids. A three bedroom house, even in a poor area in town, is 150,000 pounds which is more than three and half times my income and a lot of money to repay each month as a mortgage. It seems crazy that property prices have reached the point where people paying the higher rate of tax cannot afford to get on the property ladder.
Ian Matthews, Shrewsbury, UK
I work for a financial institution that takes responsible lending seriously. Unfortunately, too many institutions are so driven by their own sales/growth targets and the problems faced by increasing house prices that they have relaxed their lending policies to enable people to borrow far more than they would have been able to over latter years. A number of people probably haven't worked out how much of an increase in monthly commitments a 1%, 2% hike in base rate makes. Ultimately, the borrower must take full responsibility for their commitment, but I believe that the lenders have a duty to lend responsibly based on their income.
Gareth, Swansea
I am an independent financial adviser and I'll accept that it is difficult for first time buyers to get on the property ladder. However, I don't often see first time buyers sacrificing any luxuries or modifying their lifestyles to save for their deposit. Is it peer pressure, lack of guidance from parents or a general lack of understanding of debt that makes this the case? I don't know! In general people need to be more responsible for their own actions and not blame the banks, the government or the advisers for what is often a self generated problem.
Neil Burton, Tunbridge Wells, Kent
I had 14 different credit cards three years ago totalling £114,000! Obviously I couldn't cope with the repayments and got a Trust Deed. This helped to get my finances back in order and three years later I am much more credit savvy. But, the finance companies and banks etc keep offering more and more credit. They have to stop or be stopped by government legislation. No-one should have more debt than, say, three times their earnings (including mortgage ). If someone lends a person over and above this level, then the lender should be liable! The number of people who are really struggling is way above the estimates from the government who don't want to admit to the problem. Pete, Hamilton, Scotland
I find it laughable that the lenders blame interest rate rises. They know better than anybody that 4.75% is still a historically low rate. Surely anybody taking out a mortgage should ensure they can afford at least a 2% rise in interest rates. I think we all know that high house prices are the problem here but the housing industry dare not admit it as their profits are at stake.
Andy, Beds
I think people should start to take responsibility for there own actions. No estate agent or bank person was there holding a gun to there head forcing them to take a mortgage that they could not pay for. These people get themselves in to debt buy maxing out all available credit then when the interest goes up they can no longer service the debt and are all surprised by this.
Christopher, Canada
Thank goodness that we are beginning to face up to our financial responsibilities. My son and his partner were able to borrow a horrific sum of money to buy a new house and are struggling to make ends meet. How many others are in a similar position but are simply too embarrassed to admit it?
Betty Middleton, Lancaster
We have become too focused on home ownership. I would be content to rent if the rent I paid was affordable (but I would be hard pushed to find as nice a home to live in the in the private rented sector for the same amount my mortgage costs me) and if I felt I could stay there with some security and a landlord that kept the house up to a high standard. But that's not the way we are set up to live in the UK.
Katy, Brighton
I left England for Canada in 1999. This year I moved to Turkey. It is a sad and unfortunate fact that I will unlikely to be able to return to my homeland, for the simple reason that I can't afford a roof over my head. House prices are a millstone around the necks of the British people.
Peter Lee, Ankara, Turkey
Ultimately it's the customers responsibility to make sure they are not borrowing more than they can afford
Ifthir Ahmed-Miah, Newport, UK
It's all to easy to point the finger at financial advisers and the banks, the financial services industry is one of the most highly regulated industries in this country. Financial advisers are there to advise but ultimately it's the customers responsibility to make sure they are not borrowing more than they can afford. The government are also to blame for creating the environment for property prices to be out of reach of most First Time Buyers.
Ifthir Ahmed-Miah, Newport, UK
I work for an advice agency. Debt is on the increase make no mistake. However, there are priority and non-priority debts. Your mortgage gets paid pretty much above all else if you don't want to lose your property. Generally, problems are caused by a catalyst such as relationship breakdown/injury/unemployment etc. Payment protection insurance is, in my opinion worthless. So what are the options? Repossession!
Nick, Hackney
My house was repossessed a month ago. At the height of the property boom in early 2004 I splashed out far more than I could actually afford on a large property with the intention of selling it on at a profit. It wasn't long after that the property slowdown started but I kept hold of the property and financed the mortgage by getting myself further into debt, I was certain that the housing market would take off again and I would realise my gains. Following two years of quite harsh housing market drops in the south west I have been forced to admit defeat.
I blame myself for everything that has happened but I also think there are a lot of companies around who like to put a rosy outlook on the housing market and try to make everyone think it will always go up (estate agents, surveyors, mortgage companies), they should take part of the blame for lying to the public.
Dan, Bristol
It's another sign that that the boom in house prices is over and set for a steep fall over the next few years, just like they always have done after previous such unsustainable rises. What's more worrying this time around however is that interest rates are low, at the moment, but because of high personal debt and high cost of living, people are starting to struggle already. High prices do no-one any good. Even Estate agents are talking the market down - they need sales at any price, not high prices preventing sales.
Andrew, Lewes
Can we stop blaming always the estate agents and banks? I appreciate that they do play a big role in this mess, but why can people, for once, look at their own pockets and stop being so naive? I have finally managed to buy a property at the top of the market price, because I was fed up to pay rent and the flat I was living in was too small. I have stretched my finances as much as possible but the last thing I want is for my house to be repossessed. I live on potatoes and beans before that happens!
Tamara, Aylesbury
It is far too easy to borrow vast amounts of money
Andy New, Norwich
I work in the mortgage/financial industry and it is far too easy to borrow vast amounts of money. People can re-mortgage up to the value of potentially over inflated property prices and buy cars, go on holidays etc. This puts such a strain on individual's finances when rates change, but companies continually encourage it with promotions, low start rates and cash back. A lot of the responsibility is down to the customer to limit their borrowing and not get caught up in the 'live for today' or the mortgage marketing ploy. This also applies to the credit card and loan companies.
Andy New, Norwich, UK
I agree with Mike. The main cause lies in the LTV and imprudent leading by banks etc. Sales targets and competition have taken over from concerns about ability to service debt in the long term.
John, Kingston upon Thames, Surrey
It's nothing more than another sign of a greedy society that thinks it's acceptable to spend beyond its means. I wonder how many people who have had their homes repossessed also have unpaid credit card bills, personal loans, car finance etc.
Neil Wallace, Sheffield
I personally think that it's the mortgage agent who should be held responsible for property repossession. I know few people who have managed to borrow more then they can actually repay! Just for the sake of being on the property ladder. There are agents who can manipulate data in order to secure you the mortgage to buy your dream home. There must a law to catch these people.
Nehal, London
People are obsessed by how much their house is worth. How much money they have "made". The amount of friends I know who no longer buy houses because they would be a nice home but because it can make money. This is just pushing house prices and mortgage repayments out of control leading to this problem. There are no winners apart from the banks. I wish we could realise this and bring prices down to the level they should be.
Alex, Bromley
It goes to show that only property dealers and estate agents and banks benefit from crazy house prices. Normal people who just want somewhere to live, especially young people and young families can no longer afford to buy a house and those who's houses have gone up in value do not benefit because what can they do, sell up? And live where?
Leigh Porter, Fulham UK
The lenders tend to blame the increase in repossessions on increases in interest rates. However, if they had been more prudent in the amount that was borrowed many of these cases would not have arisen. Lenders have been too keen to provide high LTVs and income multiples.
Mike, Reading
Stop your repossession now www.capital-advantage.co.uk
Beware of Garbage Trucks by David J.Pollay
Beware of Garbage Trucks
By David J. Pollay
How often do you let other people's nonsense change your mood? Do you let a bad driver, rude waiter, curt boss, or an insensitive employee or co-worker ruin your day? Unless you're the Terminator, for an instant you're probably set back on your heels. However, the mark of a successful person is how quickly they can get back their focus on what's important.
Sixteen years ago I learned this lesson. I learned it in the back of a New York City taxi cab. Here's what happened:
I hopped in a taxi, and we took off for Grand Central Station. We were driving in the right lane when, all of a sudden, a black car jumped out of a parking space right in front of us. My taxi driver slammed on his breaks, skidded, and missed the other car's back end by just inches!
The driver of the other car, the guy who almost caused a big accident, whipped his head around and started yelling bad words at us. My taxi driver just smiled and waved at the guy. And I mean, he was friendly. So, I said, "Why did you just do that? This guy almost ruined your car and sent us to the hospital!" And this is when my taxi driver told me; what I now call, "The Law of the Garbage Truck."
Many people are like garbage trucks. They run around full of garbage, full of frustration, filled with anger, and full of disappointment. As their garbage piles up, they need a place to dump it. And if you let them, they'll dump it on you. When someone wants to dump on you, don't take it personally. You just smile, wave, wish them well, and move on. You'll be happy you did. So this was it: The "Law of the Garbage Truck."
I started thinking, how often do I let Garbage Trucks run right over me? And how often do I take their garbage and spread it to other people: at work, at home, on the streets? It was that day I said, "I'm not going to do it anymore."
I began to see garbage trucks. Like in the movie "The Sixth Sense," the little boy said, "I see dead people." Well, now "I see Garbage Trucks." I see the load they're carrying. I see them coming to drop it off. And like my Taxi Driver, I don't make it a personal thing; I just smile, wave, wish them well, and I move on.
One of my favorite football players of all time, Walter Payton, did this every day on the football field. He would jump up as quickly as he hit the ground after being tackled. He never dwelled on a hit. Payton was ready to make the next play his best. Good leaders know they have to be ready for their next meeting. Good parents know that they have to welcome their children home from school with hugs and kisses. Leaders and parents know that they have to be fully present, and at their best for the people they care about.
The bottom line is that successful people do not let Garbage Trucks take over their day. What about you? What would happen in your life, starting today, if you let more Garbage Trucks pass you by?
Here's my bet. You'll be happier. Life's too short to wake up in the morning with regrets, so...
Love the people who treat you right. Forget about the ones who don't. Believe that everything happens for a reason. If you get a chance, TAKE IT! If it changes your life, LET IT!
Nobody said it would be easy... they just promised it would be worth it!
By David J. Pollay
How often do you let other people's nonsense change your mood? Do you let a bad driver, rude waiter, curt boss, or an insensitive employee or co-worker ruin your day? Unless you're the Terminator, for an instant you're probably set back on your heels. However, the mark of a successful person is how quickly they can get back their focus on what's important.
Sixteen years ago I learned this lesson. I learned it in the back of a New York City taxi cab. Here's what happened:
I hopped in a taxi, and we took off for Grand Central Station. We were driving in the right lane when, all of a sudden, a black car jumped out of a parking space right in front of us. My taxi driver slammed on his breaks, skidded, and missed the other car's back end by just inches!
The driver of the other car, the guy who almost caused a big accident, whipped his head around and started yelling bad words at us. My taxi driver just smiled and waved at the guy. And I mean, he was friendly. So, I said, "Why did you just do that? This guy almost ruined your car and sent us to the hospital!" And this is when my taxi driver told me; what I now call, "The Law of the Garbage Truck."
Many people are like garbage trucks. They run around full of garbage, full of frustration, filled with anger, and full of disappointment. As their garbage piles up, they need a place to dump it. And if you let them, they'll dump it on you. When someone wants to dump on you, don't take it personally. You just smile, wave, wish them well, and move on. You'll be happy you did. So this was it: The "Law of the Garbage Truck."
I started thinking, how often do I let Garbage Trucks run right over me? And how often do I take their garbage and spread it to other people: at work, at home, on the streets? It was that day I said, "I'm not going to do it anymore."
I began to see garbage trucks. Like in the movie "The Sixth Sense," the little boy said, "I see dead people." Well, now "I see Garbage Trucks." I see the load they're carrying. I see them coming to drop it off. And like my Taxi Driver, I don't make it a personal thing; I just smile, wave, wish them well, and I move on.
One of my favorite football players of all time, Walter Payton, did this every day on the football field. He would jump up as quickly as he hit the ground after being tackled. He never dwelled on a hit. Payton was ready to make the next play his best. Good leaders know they have to be ready for their next meeting. Good parents know that they have to welcome their children home from school with hugs and kisses. Leaders and parents know that they have to be fully present, and at their best for the people they care about.
The bottom line is that successful people do not let Garbage Trucks take over their day. What about you? What would happen in your life, starting today, if you let more Garbage Trucks pass you by?
Here's my bet. You'll be happier. Life's too short to wake up in the morning with regrets, so...
Love the people who treat you right. Forget about the ones who don't. Believe that everything happens for a reason. If you get a chance, TAKE IT! If it changes your life, LET IT!
Nobody said it would be easy... they just promised it would be worth it!
Thursday, February 21, 2008
Compulsory Liquidation > I am owed money by a company that is in liquidation
Compulsory Liquidation > I am owed money by a company that is in liquidation
If you are a creditor (owed money by) of a company in liquidation the Official Receiver (OR) will normally notify you (within 12 weeks of the date of the court order) whether a meeting of creditors will be held. The OR will decide to hold a meeting if the company has significant assets available that can be realised for the benefit of creditors.
You will also be sent a report giving estimates of the insolvent’s assets and liabilities and what the causes of the failure are considered to be. If you think that a bankrupt or company is withholding information about its assets, you should write to the OR dealing with the case.
If you have not been contacted then you should write to the OR or insolvency practitioner (IP) if the case has been handed over to one, quoting the court reference of the case if possible, advising him/her that you are a creditor.
If you are unsure of the company number, who the OR/IP is, or wish to find out if a company is in liquidation, then you should search the register of companies at Companies House.
If the company is in liquidation the status in the search result will be 'L'. If you then click on the company number to the left of the status column you will be presented with a page detailing company information.
This website has a publication that may be helpful – ‘A Guide to Creditors’ Specific queries relating to a case should be directed to the OR or IP.
For general enquiries on insolvency matters you can contact The Insolvency Service Insolvency Enquiry Line on 0845 602 9848; or email: Insolvency.EnquiryLine@insolvency.gsi.gov.uk
The Law in England and Wales relating to bankruptcy is different to that in Scotland and Northern Ireland.
For information in Scotland you should contact The Accountant in Bankruptcy at:
The Accountant in Bankruptcy1 Pennyburn RoadKilwinningAyrshireKA13 6SA
Switchboard: 0845 612 6460
Helpline: 0845 762 6171
Website : www.aib.gov.uk
For information in Northern Ireland you should contact The Insolvency Service of Northern Ireland at:
The Insolvency ServiceFermanagh HouseOrmeau AvenueBelfastBT2 8NJ
Tel: 02890 251441
Further information
Dealing with debt - how to wind up a company the owes you money
© Crown copyright 2006 copyright notice - Crown copyright material is reproduced with the permission of the Controller of HMSO and the Queen’s Printer for Scotland
Full details can be viewed at http://www.insolvency.gov.uk
If you are a creditor (owed money by) of a company in liquidation the Official Receiver (OR) will normally notify you (within 12 weeks of the date of the court order) whether a meeting of creditors will be held. The OR will decide to hold a meeting if the company has significant assets available that can be realised for the benefit of creditors.
You will also be sent a report giving estimates of the insolvent’s assets and liabilities and what the causes of the failure are considered to be. If you think that a bankrupt or company is withholding information about its assets, you should write to the OR dealing with the case.
If you have not been contacted then you should write to the OR or insolvency practitioner (IP) if the case has been handed over to one, quoting the court reference of the case if possible, advising him/her that you are a creditor.
If you are unsure of the company number, who the OR/IP is, or wish to find out if a company is in liquidation, then you should search the register of companies at Companies House.
If the company is in liquidation the status in the search result will be 'L'. If you then click on the company number to the left of the status column you will be presented with a page detailing company information.
This website has a publication that may be helpful – ‘A Guide to Creditors’ Specific queries relating to a case should be directed to the OR or IP.
For general enquiries on insolvency matters you can contact The Insolvency Service Insolvency Enquiry Line on 0845 602 9848; or email: Insolvency.EnquiryLine@insolvency.gsi.gov.uk
The Law in England and Wales relating to bankruptcy is different to that in Scotland and Northern Ireland.
For information in Scotland you should contact The Accountant in Bankruptcy at:
The Accountant in Bankruptcy1 Pennyburn RoadKilwinningAyrshireKA13 6SA
Switchboard: 0845 612 6460
Helpline: 0845 762 6171
Website : www.aib.gov.uk
For information in Northern Ireland you should contact The Insolvency Service of Northern Ireland at:
The Insolvency ServiceFermanagh HouseOrmeau AvenueBelfastBT2 8NJ
Tel: 02890 251441
Further information
Dealing with debt - how to wind up a company the owes you money
© Crown copyright 2006 copyright notice - Crown copyright material is reproduced with the permission of the Controller of HMSO and the Queen’s Printer for Scotland
Full details can be viewed at http://www.insolvency.gov.uk
Compulsory Liquidation > What is Compulsory Liquidation?
Compulsory Liquidation > What is Compulsory Liquidation?
What types of liquidation are there?
Members' voluntary liquidation (or members' voluntary winding up) - this is when the shareholders of a company decide to put it into liquidation, and there are enough assets to pay all the debts of the company, i.e. the company is solvent.
Creditors' voluntary liquidation (or creditors' voluntary winding up) - this is when the shareholders of a company decide to put the company into liquidation, but there are not enough assets to pay all the creditors, i.e. the company is insolvent.
Compulsory liquidation (or compulsory winding up) - this is when the court makes an order for the company to be wound up (a 'winding-up order') on the petition of an appropriate person. If there is more than one director, all the directors must jointly present the winding-up petition - a single director cannot present a winding-up petition.
If you are a director or a shareholder and you are also a creditor of your company, you may wish to present a winding-up petition on the grounds that the company cannot pay its debts. Please read our publication 'Dealing with debt - How to wind up a company that owes you money' for more information.
Where can I get advice about liquidation?
Before you take any action to put a company into liquidation, you should obtain your own legal or financial advice about this procedure and any other options available to you. You can get advice from your local Citizens Advice Bureau, a solicitor, a qualified accountant, an authorised insolvency practitioner, any reputable financial adviser or a debt advice centre.
What are the alternatives to liquidation?
There are 3 possibilities:
Informal arrangement - the company could consider writing to all its creditors to see if a mutually acceptable agreement can be reached. It is advisable to include a timetable of when payments will be made.
Company voluntary arrangement (CVA) - this is a formal version of the arrangement described above. The directors would need to apply to the court with the help of an authorised insolvency practitioner, who would supervise the arrangement and pay the creditors in line with the accepted proposals.
Administration - this is a court procedure that gives the company some breathing space from any action by creditors. A court can grant an administration order to enable the company to:
survive, in whole or in part, as an ongoing business;
organise a voluntary arrangement or compromise with its creditors;
get a better realisation of assets than would be possible if the company went into liquidation.
The procedure is managed by an administrator, who must be an authorised insolvency practitioner.
Further Information
You can find further information in the publication 'Dealing with Debt - How to wind up my own company'
© Crown copyright 2006 copyright notice - Crown copyright material is reproduced with the permission of the Controller of HMSO and the Queen’s Printer for Scotland
Full details can be viewed at http://www.insolvency.gov.uk
What types of liquidation are there?
Members' voluntary liquidation (or members' voluntary winding up) - this is when the shareholders of a company decide to put it into liquidation, and there are enough assets to pay all the debts of the company, i.e. the company is solvent.
Creditors' voluntary liquidation (or creditors' voluntary winding up) - this is when the shareholders of a company decide to put the company into liquidation, but there are not enough assets to pay all the creditors, i.e. the company is insolvent.
Compulsory liquidation (or compulsory winding up) - this is when the court makes an order for the company to be wound up (a 'winding-up order') on the petition of an appropriate person. If there is more than one director, all the directors must jointly present the winding-up petition - a single director cannot present a winding-up petition.
If you are a director or a shareholder and you are also a creditor of your company, you may wish to present a winding-up petition on the grounds that the company cannot pay its debts. Please read our publication 'Dealing with debt - How to wind up a company that owes you money' for more information.
Where can I get advice about liquidation?
Before you take any action to put a company into liquidation, you should obtain your own legal or financial advice about this procedure and any other options available to you. You can get advice from your local Citizens Advice Bureau, a solicitor, a qualified accountant, an authorised insolvency practitioner, any reputable financial adviser or a debt advice centre.
What are the alternatives to liquidation?
There are 3 possibilities:
Informal arrangement - the company could consider writing to all its creditors to see if a mutually acceptable agreement can be reached. It is advisable to include a timetable of when payments will be made.
Company voluntary arrangement (CVA) - this is a formal version of the arrangement described above. The directors would need to apply to the court with the help of an authorised insolvency practitioner, who would supervise the arrangement and pay the creditors in line with the accepted proposals.
Administration - this is a court procedure that gives the company some breathing space from any action by creditors. A court can grant an administration order to enable the company to:
survive, in whole or in part, as an ongoing business;
organise a voluntary arrangement or compromise with its creditors;
get a better realisation of assets than would be possible if the company went into liquidation.
The procedure is managed by an administrator, who must be an authorised insolvency practitioner.
Further Information
You can find further information in the publication 'Dealing with Debt - How to wind up my own company'
© Crown copyright 2006 copyright notice - Crown copyright material is reproduced with the permission of the Controller of HMSO and the Queen’s Printer for Scotland
Full details can be viewed at http://www.insolvency.gov.uk
Monday, February 18, 2008
Saturday, February 16, 2008
Case Study
Case study:
Small Public House management Company with 7 leashold pubs and bars, all over rented, high rates, and utilites, over staffed and losing stock through bad stock controls. large Vat debt and bailiffs into the business every other day.
Solution:
Advised on the overall picture, we supplied and advised regarding stock controls, put in covert operative to monitor the situation regarding thefts.
Came to a repayment schedule with the VAT to keep the business trading, negotiated hand back of 3 of the sites to the landlord, obtained more comepetive ultility supplies and settled the present bills.
Obtained more competive funding with cash back.
Small pub group now trading at a profit and protected the Directors positions.
Small Public House management Company with 7 leashold pubs and bars, all over rented, high rates, and utilites, over staffed and losing stock through bad stock controls. large Vat debt and bailiffs into the business every other day.
Solution:
Advised on the overall picture, we supplied and advised regarding stock controls, put in covert operative to monitor the situation regarding thefts.
Came to a repayment schedule with the VAT to keep the business trading, negotiated hand back of 3 of the sites to the landlord, obtained more comepetive ultility supplies and settled the present bills.
Obtained more competive funding with cash back.
Small pub group now trading at a profit and protected the Directors positions.
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