13 September 2019: We were recently approached here at the BRI Milton Keynes office by a builder, not to sort out our issue with the guttering but in his capacity as a company director, who had the intention of liquidating his company. He had already been told by another firm that a voluntary liquidation of his company could be carried out for a cost of £4,000. He was told that this would clear the company debts (of circa £50k) and that he would be able to put money back in his own pocket via a redundancy claim from the redundancy payments office. It had sounded like a good option and he had intended to proceed but thought that he should just get a second opinion. Fortunate for the builder that he did....
After a free consultation meeting with BRI, which was not limited to but only took about an hour, it was clear that liquidation may not be the correct route for this director. It had transpired that the majority of the company debts had been personally guaranteed by him (in fact only about £2k of the £50k wasn’t subject to a personal guarantee). Had the builder ploughed on and liquidated the company, it would have led to the crystallisation of these debts and the director being pursued personally. This in turn could have resulted with him losing his property. That £4k fee isn’t looking so great now and we suspected that the redundancy payment office in this case wouldn’t have paid out on his redundancy claim either, as the director didn’t meet the, quite specific, conditions for such a claim.
And we didn’t stop there. As stated, clearly the company had financial issues, after discussing the problems and considering their future prospects, some suggestions were made to change the direction of the company that will return it to a solvent position in the future.
The builder was certainly pleased with the guidance provided by us and who knows, may be back to fix that guttering issue one day. All BRI staff live by our ethos of right advice first time every time, irrespective of fee income for us.