CONSOLIDATION LOANS....ARE THEY YOUR BEST OPTION?

There are so many people scouring the internet as I write this deperatley searching for a consolidation loan. They are struggling with existing credit agreements and believe that having one monthly would solve all of their problems. In their search they are targeted by unethical loan broker companies who charge extortionate fees (normally £69.50) to offer a guarantor loan OR debt counselling!


What they don’t realise is that getting a loan in this day in age (even with a good credit rating) is almost impossible. So if they can’t get a consolidation loan......what can they do?


The answer to this is simple; they can arrange a debt consolidation plan. This a fantastic way to utilise monies already borrowed to their own advantage. All of their unsecured debts (including payday loans, loans, credit cards, store cards, catalogues etc) are added together (like a consolidation loan), you pay Pure Financial Management one affordable monthly payment and they distribute it between your creditors. This means that all the harassing phone calls stop, the nasty letters cease and you are free to regain financial freedom!

Once Pure Financial Management have received up-to-date balances from their creditors they will give an exact term for the plan. This will be the time that it will take to become debt free!

If you would like to have an informal discussion, or a quotation please give them a call on freephone

0800 4 96 95 94 or EMAIL

THE TRUTH ABOUT CONSOLIDATION LOANS AND £69.50 BROKER FEES!

Applying for a Consolidation Loan may seem like a quick fix, especially when you have numerous creditors and arrears. The truth is if you have arrears, defaults and CCJs these loans are non-existent - many people are taking the desperate measures of paying these so called “brokers” a fee (normally £69.50) in the hope of finding a solution. Once you have paid this money you will normally be issued with an application form to apply for a guarantor loan or offered debt counselling. The Office of Fair trading are investigating these various brokers but in the meantime they continue to take these unlawful broker fees from desperate people!


There are other options available. You may have not considered the fact that a Debt Management Plan (DMP)may be the best option – it can instantly stop the worry and you are paying your debts with one affordable payments as opposed to borrowing more money.

For example, if your total debts totalled £6825 and we were made up of loans, catalogues and payday loans etc and you could comfortably afford to pay £175. This would mean that you would be debt free in 49 months. The amount you pay per month depends on what YOU decide therefore if you could pay £250 per month you would be debt free in 35 months.

A DMP is a convenient way to pay your debts and to stop the harassment from creditors. You pay your monthly instalment to us on an agreed date each month and we distribute the payments between your creditors. We negotiate with them to ensure that the harassing phone calls stop and they stop adding late payment charges and interest.

If you have fallen foul of the “broker” fee we can help! Our debt advisors will assist you in getting a refund within 28 days (although the brokers are allowed to deduct a £5 admin charge). This is all in our service.

If you would like to have a friendly, informal chat about how Pure Financial Management could help you – please do not hesitate to get in touch.

0800 4 96 95 94 or EMAIL

CREDIT CARD WRITE-OFFS INCREASE

As seen on the BBC News website today there has been a further rise in the amount of credit card debts being written off by UK banks and other lending institutes.


Bank of England figures show that in the first three months of 2010 write-offs rose to £1.25bn. That was the second highest quarterly amount on record. Last year, a record £4.12bn was written off by credit cards lenders which amounted to 10% of all money lent on credit cards.


£160m was the amount of money written off on mortgages which is the lowest quarterly figure for 18 months. The number of repossessions in the UK also fell by 7.5% in the first quarter of 2010 to 9800.

The Bank of England have been quoted as saying that these losses have been the prime factor in the increase on the interest payable. Statistics show that the average UK credit card rate was 15.51% in April this year which is slightly higher than July 2007 where the rate was 15.2%.

PURE DEBT SOLUTIONS APPEAR TO BE UP TO OLD TRICKS!

It looks like Pure Debt Solutions are up to old tricks!  This time they appear to be making unsolicited cold calls to individuals.  If you have stumbled across this blog whilst searching for information on Pure Debt Solutions then I recommend that you report the company to TPS (Telephone Preference Service) - they can be contacted on 0207 2913320 - although the calls are annoying try and take as many details as you can about them (such as address, telephone number) as this will help TPS take action.

Tenable Solutions Limited does run a debt management company called Pure Financial Management but we do not have an outbound sales team.

Last year we had calls from worried individuals who had paid money to Pure Debt Solutions for a Debt Management Plan which didn't exist, it appears now they are looking for new clients with their abhorent sales techniques!

If you do have concerns about personal debts and would like some friendly, impartial advice then please do not hesitate to contact me.

0800 4 96 95 94 or EMAIL

HMRC Debts

Many people are still not aware that HMRC (Her Majestys Revenue & Customs) are NOT preferencial creditors.  Simplified this means that they do not have any preference over any of your other creditors and should be dealt with in the same way.  The only difference with HMRC is that they can and will use effective methods in which to collect monies owed.  This could be by issuing a CCJ (County Court Judgment) followed by visits from bailiffs (and don't forget if your premises are solely commercial they can enter without permission) or even a Winding-Up Petition.  This information is not meant to scare you but to make you realise that you need to tackle your debts head on - the debts will not go away.

You could contact your creditors yourself and try to organise a payment plan but you need to be very careful that you do not show preference to any creditor, you also need to ensure that you payments are realistically affordable and not just a random figure given as a knee jerk reaction.  This is very time consuming and you may find that whilst you are negotiating with your creditors (who will play hard ball to get as much money from you as possible) you are not spending the time required earning money for your business.  It's a chicken and the egg situation!

There are lots of solutions available and of course, your situation will be unique to you therefore it is imperative that you recieve the best advice possible from a company that will work solely on your behalf.  Ensuring that your needs are met and that you are fully protected before your creditors recieve anything!

If you would like to have an informal chat on how Tenable Solutions Limited and its subsiduaries can help you please do not hesitate to contact me on 0800 4 96 95 94 or if you prefer you can email me for a speedy response.  Any contact is treated in the strictest of confidence and all advice is given without obligation.

PERSONAL GUARANTEE (PG)

At the time signing a personal guarantee (PG) for that product that you really needed to help your business seemed like a great idea.  It was, until the day came when your business failed and you realised that you are now personally liable for a debt you cannot afford.

The first thing you need to do is not panic, no matter what the size of the debt.

Tenable Solutions Limited are experts at (pardon the cliche) "thinking outside the box", possibly giving you options you hadn't even considered.  Our sole aim as a company is to put our clients needs first, ensuring that they are protected.

If you have been stung by a Personal Guarantee why not give us a call to discuss your options?  The call is free and so is any initial advice!

0800 4 96 95 94 or EMAIL

THE TRUE COST OF DEFENDING A WINDING-UP PETITION....

If a creditor has issued winding-up proceedings against you company I am sure you will have be inundated with communication from various recovery organisations.  One of the first questions that we are normally always asked is in relation to cost. The general cost for Tenable Solutions Limited to defend your Winding-Up Petition is as follows:-
• First petition £500
• Second petition £750
• Third petition £1000
The above prices not only reflect representation at court to defend the Winding-Up Petition BUT includes our unrivalled after care service. Generally, a Winding-Up Petition signifies other problems; you may also have other creditors who are pressing or you may be simply having a “blip” in your cashflow. Whatever your issues we can help! Our main aim is to put you back in control of your business and to have a positive, profitable future.
Our record for defending Winding-Up Petitions is exemplary, we have an expert in-house legal department and this enables us to keep our costs to a minimum unlike other firms and indeed solicitors.
We understand the importance of your situation and want to make sure that you make the correct decisions at such a crucial crossroads in your business and as such we offer a free, confidential consultation. This could even be used as a second opinion for advice that you have already received.
We understand that the majority of business owners do not work “9-5” and as such we have an OUT OF HOURS SERVICE, a consultant will be on hand until 9pm in the evenings and on a weekend - this number is 07595 793236. Alternatively if you would like an informal chat during office hours or to arrange a FREE, no obligation consultation then please call do not hesitate to contact me on free phone 0800 4 96 95 94 or email

PHONE SITUATION UPDATE

13.30pm 20 May 2010....our phone lines have now been fixed and normal service resumes.  Sorry if this has caused anyone any inconvenience.

PROBLEM WITH THE PHONES!

Since the afternoon of Tuesday 18 May 2010 we have been experiencing problems with our phone lines.  A BT engineer visited yesterday and was unable to deal with it so we are now waiting for a BT Openworld engineer.  Hopefully this should be today!

If you have a query or you are an existing client please contact us via email or telephone 07595 793236 / 07951 145172.  Please leave a message should there be no answer.

COST EFFECTIVE DEBT COLLECTION!

There can be many reasons why businesses experience difficulties during a recession; your business may be successful it may just be struggling due to other people / businesses owing you money. Debt collection is a minefield! There are many misconceptions in this area and not many businesses know how to collect debts effectively, for the minimum cost and effort.


The words “debt collection” comes with a lot of stigma. Over the past few years this industry has been tarnished due to unlicensed companies (we hold a fully up-to-date consumer credit license; this allows us to legally collect debts). This makes it difficult for people to know where to turn when they need to collect a debt and many turn to their / a solicitor but this accrues large legal bills and you can end up spending more than the debt!

We are proud to say that we use effective AND lawful techniques to collect debts whether they are commercial or personal. Many debtors are using the current economic climate as an excuse for the debt and on the back of this are offering token payments in respect of their debts. We work solely for you and we will work with you to find a repayment that suits you – if this cannot be adhered to there are other options available which you may not have considered. If the debt is owed to you by an individual you could have a charging order placed on their property – this would mean that you hold a charge on their property and it would need to be paid prior to the sale of a house in the same way their mortgage would. Another option could be issuing a Stat Demand for bankruptcy; this is a very, very effective way to collect a debt especially if the debtor has assets or is afraid of the publicity that bankruptcy brings! You could even do both – this would mean that if the bankruptcy was granted you would still hold a charge on the debtor’s property. If the debt is owed to you by a company then there are also various routes you can go down, a petition can even be issued to “wind-up” the company.

Of course the above options are examples; your individual case would be assessed and then you would be advised on the best course of action. One thing is for certain though – we do not send numerous letters to the debtor in the hope that at some point they make contact. We use all our knowledge and facilities to get your money back and recover your costs.

If you would like to discuss how Tenable Solutions Ltd can assist your company please do not hesitate to give me a call for an informal chat.

0800 4 96 95 94 or EMAIL

JARGON BUSTING - THIRD PARTY DEBT ORDER

The cost to apply for a Third Party Debt Order is £100 (correct as of April 2010) and to apply you need to complete form N349 which is downloadable from the HMCS website.



It can be a very effective tool in collecting debts but it is quite complex.


Firstly, you need to have secured a CCJ against the debtor and the debtor needs to have either:-

a) Not paid the CCJ within the given timescale (by the court)


b) Not kept up to instalments


Once you have completed the Third Party Debt Order the court will freeze the debtors bank account and issue a date for a hearing. The debtor would be given no prior warning and would simply not be able to access any funds (and no funds will be able to be paid in), as with everything the debtor would be given the chance to appeal. At the hearing the judge would decide whether to grant the order and indeed pay the creditor from the funds held in the bank account.
This may all sound simple BUT there are several things to consider such as:-


• Not possible on a joint bank account unless both account holders are liable for the debt


• Only available if the debtors bank (head office) is in England or Wales


• The date is very important i.e. you need to be sure funds are in the account to cover the debt.


• If for example the CCJ is for £2000 and there is only £1999 then you would not get anything.


If you would like any advice on effective debt collection then please do not hesitate to contact me.

MORTGAGE BROKERS! WOULD YOU LIKE TO EARN AN EXTRA INCOME FOR FREE?

The past twelve months have been a learning curve for all businesses; many are tightening their belts in order to ride the financial storm and looking at different ways to increased profitability. Business recovery and turnaround is one of the few industries to thrive in a recession, we have a large client database and a plentiful lead source and we are giving businesses nationwide, the opportunity to “bolt on” business recovery and turnaround to their business.

We would like to invite you to a short, informal, free seminar these are held at our offices in Wakefield, West Yorkshire – courses are run weekly, during evenings and at weekends too. The seminar will give you the opportunity to ask any questions that you may have, discuss the range of packages available, to meet the team and to meet like-minded people who wish to increase profitability and to expand their business.

Once you have decided that you would like to join your business with Tenable Solutions Ltd, our IT department will (if required) set up your own personal website, this will hold your own contact details. You will also be set-up with your own unique telephone and fax number. Our marketing team will provide you with all of the marketing support that you need and can arrange for effective, local advertising in your area along with setting up and advising on internet marketing such as blogs, twitter, facebook etc.

One question that many people at the seminar ask is with regards to insurance, as this can be costly and time consuming. We are fully insured (professional indemnity), hold all of the correct licenses and you will be covered by Tenable Solutions Ltd at no expense.

We offer services which far out rival any of our competitors; all of our services are under one roof – nothing is outsourced. This enables us to keep our costs low and to be able to provide an unrivalled, cost-effective service for our clients. We also offer Tenable Business Support Service; this is available to all businesses – not just the ones struggling. Pure Financial Management is another company within our portfolio; this offers personal Debt Management Plans for individuals struggling with repaying their debts. Another branch of our company is business acquisitions, this is a unique concept within our industry and if the business is in your area or brought to the table by you / your sources then you will be guaranteed a shareholding.
From the brief little insight I have given to Tenable Solutions Ltd I am sure you will now appreciate how our consultants are earning in excess of £60,000 per annum. We have an experienced, professional, internal sales team that generate leads – using trained professionals ensures that all leads are genuine and qualified and that all the information is current and up-to-date.


Should you wish to discuss this matter further or would like a place reserving please do not hesitate to contact me.

0800 4 96 95 94 or EMAIL

Testimonials......

Have you seen our new testimonials page on our website?  These are all 100% genuine cases and we are proud to sing our own praises!!!

FREE NEW BUSINESS SEMINARS......

Starting a business at any time can be tough but unexpected events such as redundancy may have left you no alternative but to “go it alone” on the crest of the recession. There are so many decisions to make and so many different avenues for you to explore that it can be challenging to know where to begin.


For the past six months we have successfully been holding free, short and informal monthly seminars for people who have made the decision to brave the storm, decide their own future and set-up their own business. The content of the seminars vary dependant on the attendees and the topics covered can be decided by you.

Some of the topics that attendees have previously wanted to look at are:-

• The difference between sole-trader and limited and the pros and cons
• Protecting assets
• HMRC and how to ensure you are compliant
• VAT registration
• Accountancy advice
• Marketing – online / offline
• Sourcing funding
• Federation of Small Business / Chamber of Commerce membership pros and cons
• Employing staff
• Cashflow


You may be wondering why we run these FREE seminars; the answer to this is simple! Tenable Solutions Limited specialises in business recovery and turnaround. Day in day out we see the mistakes that many people make and IF the worst happens and the business wasn’t set up correctly it can result in expensive legal costs and people losing assets such as their homes etc. We actively encourage business owners to be pro-active in their business and as such we formed Tenable Business Support to avoid any problems that may occur further down the line.

To reserve your place on our next free, informal monthly seminar please contact me on 0800 4 96 95 94 or EMAIL me.

THE TRUE COST OF DEFENDING A WINDING-UP PETITION......

If you have recieved a Winding-Up Petition then I am sure you will have received lots of communication from various different organisations. Please don’t disregard this blog as we genuinely can help you and it won’t be as costly as you may think!


One of the first questions that we are always asked is in relation to cost. The general cost for Tenable Solutions Limited to defend your Winding-Up Petition is as follows:-

• First petition £500
• Second petition £750
• Third petition £1000

The above prices not only reflect representation at court to defend the Winding-Up Petition BUT includes our fantastic after care service. Generally, a Winding-Up Petition signifies other problems; you may also have other creditors who are pressing or you may be simply be having a “blip” in your cashflow. Whatever your issues we can help! Our main aim is to put you back in control of your business and to have a positive, profitable future.

Our record for defending Winding-Up Petitions is exemplary, we have an expert in-house legal department and this enables us to keep our costs to a minimum unlike other firms and indeed solicitors.

We understand the importance of your situation and want to make sure that you make the correct decisions at such a crucial crossroads in your business and as such we offer a free, confidential consultation. This could even be used as a second opinion for advice that you have already received.

We understand that the majority of business owners do not work “9-5” and as such we have an OUT OF HOURS SERVICE, a consultant will be on hand until 9pm in the evenings and on a weekend - this number is 07595 793236. Alternatively if you would like an informal chat during office hours or to arrange a FREE, no obligation consultation then please call do not hesitate to contact me on free phone 0800 4 96 95 94, or you can email me.

THE LAW ON WATER DISCONNECTION...............

Section 7 of the Water Industry Act [1999] prohibits the disconnection of residential water supply. This extract is from the explanatory notes from the act, which explains it more clearly:

Disconnection
7. Until now, if consumers did not pay their water and sewerage bills, water companies had the power to disconnect the supply. Water companies also argued that they were not prohibited from restricting the amount of water available for a consumer's use if they did not pay their bill. The Act removes the power to disconnect water supply for non-payment, or to limit the supply with the intention of enforcing payment, from a list of different premises. These premises are private dwelling houses, caravans, houseboats, houses in multiple occupation and sheltered accommodation (where these are someone's main home) and children's homes, residential care homes, prisons and detention centres, schools, premises used for children's daycare, institutions of further and higher education, hospitals, nursing homes, GPs' and dentists' surgeries (including surgeries set up as primary care pilot schemes) and premises occupied by the emergency services.

If you are having problems with arrears with any utilities (either commercial or domestic) do not hesitate to give me a call for some friendly, impartial advice.

0800 4 96 95 94 or EMAIL

TESTIMONIALS NOW ADDED TO WEBSITE!

We feel that adding a testimonials section to our website gives confidence to potential new clients.  Within our industry there are so many "cowboys" and we are working hard to prove that we are unique in the service that we provide!

On completion of a case each client is sent a satisfaction questionnaire, this asks for positive and negative comments and we have been happy with the results! 

To have a look at the wide variety of testimonials recieved click here!  As you will see all company names have been removed in accordance to the Data Protection Act 1998 and to protect our clients integrity.

Enforcing a CCJ in Scotland

Scottish Law on debt enforcement is different to English.

If the debtor lives in Scotland but the claimant is in England a CCJ can be sought at an English County Court. Once the judgment has been issued it then needs to be registered in Scotland.

To do this a covering letter, with the judgment and a cheque for £10.00 needs to be sent to:-

Registers of Scotland
Erskin House
68 Queen Street
Edinburgh
EH2 4NF
Tel: 0131 4793630

The claimant will then receive a “black booklet” back; this means the judgment has been registered and can now be enforced.

To enforce the debt you need to contact a Sheriffs Officer local to the debtor, they will then (after paying a fee, generally around £62) serve a charge for payment on the debtor. This orders the debtor to pay the full balance plus costs within 14 days.

If the 14 day passes and the debt hasn’t been paid then there are various option available such as bank account arrestment. All of these incur further costs and each individual case is different and would need to be discussed.

If you have a query relating to this and would like to discuss matters further, please do not hesitate to get in touch.

EMAIL or call 0800 4 96 95 94

VALIDATION ORDER....

If you have been issued with a Winding-Up Petition your bank account will be (if not already) frozen. This will mean that you are unable to use the funds in your bank to pay bills and wages etc. This can be a crippling time for any business even if they have the funds to pay the petition.

There are things that can be done, a Validation Order is one of them. This enables the business to utilise the funds in the bank.

It is complex but we can assist you.

If you would like any advice on validation orders then please contact me.

EMAIL or call 0800 4 96 95 94

JARGON BUSTING......WARRANT OF EXECUTION

Once a Judgement has been issued against the debtor the creditor can apply for a Warrant of Execution at any point if the debt is between £50 and £5,000 (in Scotland between £600-£5,000). If the debt is over £5,000 then the High Court would enforce the debt in the same way but this is known as a Writ of FiFa.

The Warrant of Execution will be calculated by the amount of the judgment; plus the court fees and if granted, the creditor’s costs. Statutory interest cannot be sought of judgement debts of less than £5,000.

Once the Warrant of Execution has been issued the court will transfer the judgement to the debtor’s local County Court, in turn they will write to the debtor informing them of the Warrant of Execution. This letter gives the debtor 7 days to pay the amount of the Warrant in full without further action. If the debtor pays within this time frame then the Warrant of Execution is cancelled and the monies are paid to the creditor.

During the 7 day period the debtor may apply for the Warrant of Execution to be suspended. This application must state a valid reason (i.e. offer to pay the judgment by instalments). The court would then notify the creditor of the application to suspend the Warrant. If the creditor contests the application the court will list the application for a hearing. The court would then decide whether to uphold the application to suspend or whether the Warrant of Execution still stands. (The debtor has to pay a fee to the court to apply to suspend the Warrant of Execution).

If the debtor fails to pay or apply for the Warrant of Execution to be suspended, the bailiff will usually within 15 working days visit the debtor at their home address. They will attempt to identify items which can be sold to recover the debt. Certain items are unable to be taken and the County Court Bailiff has to follow strict guidelines as to how they can take the goods. They are not allowed to break into any property – entry must be via a “peaceable” method such as unlocked door, window. If the bailiff is let into the property by a bailiff he can take payment there and then or may take an inventory of goods. This is known as a “walking possession order”. This means that if payment is not made the bailiff may / will revisit and take the goods. At this point the bailiff is allowed to break into the property if he has entered the property “peacefully” before.

A Warrant of Execution lasts for a period of one year from the date of issue. If the creditor wishes to extend the Warrants life beyond one year they must supply the court with sufficient reasons for this to be granted and unless there are exceptional circumstances this should be done prior to the Warrant of Execution expiring. There is a fee to extend the Warrant of Execution.

THE HEADACHE CALLED MARKETING.............

In some respects marketing is one of the most important factors as to whether your company will succeed or fail. We all understand the importance of first impressions but, many companies fail to realise this importance when setting up a company as they have many other things to consider.

There is a misconception that marketing is just for large organisations with budgets to suit! But even simple things such as letterheads, compliment slips, business cards, brochures all come under the bracket of marketing. These need to create an impact – do yours create the right one?

Marketing is a science; you need the right mix to get the desired results. You already know that your company is great – now you need to let everyone else know!

There are many ways to promote your company for free; the majority of these are online. You could set up a blog, open a twitter account, create a Facebook page. These are all easy to do.........but then comes the difficult part! What do you write?

Employing a marketing team may sound daunting, maybe even expensive but it all depends on your requirements. We have bespoke packages to suit all budgets! This stems from giving a few pointers to writing a daily blog and managing online accounts.

We can an assist with all aspects of marketing for your company and endeavour to create the right marketing mix for your individual needs.

Call me for an informal chat about how we can help you grow your business.

0800 4 96 95 94 or EMAIL

JARGON BUSTING.......WINDING-UP PETITION

In effect any creditor owed over £750 can apply to the court for a Winding-Up Petition, in simple terms the petitioning creditor has had enough of false promises, broken payment agreements and bounced cheques and wishes to stop the company trading (compulsory liquidation). It is a costly action to pursue but very effective, especially if the company has valuable assets. Upon receipt of the petition the court will review the evidence supplied and decide whether the petitioning creditor has taken reasonable steps to collect the debt. In some cases the debtor may believe that a Winding-Up Petition has been issued unfairly and an “abuse of the court process”, legal advice must be sought at this point but it may be possible to have the petition rescinded if it is deemed by the court as an abuse. This would stop any action such as banks accounts being frozen or the petition being advertised. If the court does not believe it to be an abuse of the system then it will still stand and be advertised as normal.

The petitioning creditor has to allow seven full days after serving the petition on the registered office of the debtor company before it can be advertised, also prior to the High Court Hearing the petition must have been advertised in the London Gazette (Edinburgh Gazette for Scottish registered companies) and is usually done so seven days before.

Once the petition is advertised the bank will find out and will usually freeze the company’s bank account. This prevents any illegal actions of the Directors.

There are actions that can be taken to unfreeze the bank account but professional advice should always be sought on obtaining a “validation order”, of course this action is also costly as it incurs legal fees.

If the debtor does not pay the winding-Up Petition or if the petitioning creditor does not agree to any offers it generally leads to a winding-up order being issued and the Official Receiver or court appointed liquidator taking over the company.

At this stage the Directors will personally be investigated, this is to ensure that they did not trade whilst insolvent and acted properly according to their Director duties.

If the company is “wound up”, the Directors will be held personally liable for any debts signed for with a Personal Guarantee (PG).

0800 4 96 95 94 or EMAIL

PROTECTING ASSETS.....HOW PROTECTED ARE YOUR COMPANIES?

Worryingly the majority of the companies that we visit do not have the correct protection in place for their assets. They may have taken advice from their accountant or simply believe that a Directors Loan offers all the protection they need. What they don’t realize is that if the company closes (or is forced to close) the Directors Loan would not receive any preference over any other creditor.

Tenable Solutions Limited offers a proactive approach to protecting company assets; this can be done at any stage of business and guards against any action that may be taken. As companies tighten their belts to ride the financial storm, they are thinking of effective ways to collect their debts. This means that more companies are being issued with County Court Judgements (CCJs); these may be justified or may be part of a dispute. Even if the action taken is a dispute assets can be placed in jeopardy – protecting them correctly ensures that they cannot be taken.

Imagine the quandary if a bailiff walked into your premises today (if you premises are solely commercial they can enter without permission) – what could they take? In 99.5% of the cases they can take anything. There is a grey area in bailiff law which covers tools of the trade; it is a little known fact that when bailiffs refer to tools of the trade it only refers to one set. Therefore if for example the debtor runs a large hairdressers employing several hairdressers the bailiff only need leave one pair of scissors, one hairdryer, one set of combs etc. This was an amendment to the 1981 Supreme Court Act in 1996. It states:-

“Section 138(3a)(a)(i) such tools, books, vehicles and other items of equipment as are necessary to that person for use personally by him in his employment, business or vocation”

Imagine how that could ruin the livelihood of a business; it could be costly and time consuming to purchase new “tools” in a short space of time.

Some companies we have visited have illegally protected assets, they have done this with information they have retrieved from the internet. Luckily, we have now ensured that they are protected within the law. Illegally protecting assets could be construed as misconduct and is viewed dimly by the courts and action could be taken on the Directors personally.

Tenable Solutions Limited specialize in legally protecting assets, this can be done quickly and conveniently and without disrupting trading.

It doesn’t matter whether the company has just set-up, been trading seventy years has £30million or £10,000 turnover. What matters is they have assets that need protecting, this could be physical assets or money personally lent to the company.

If you would like to learn more about protecting assets and how it could be of a benefit to your company, contact us for an informal chat.

EMAIL or call 0800 4 96 95 94

LITTLE KNOWN FACT ABOUT BAILIFFS.........

It is a little known fact that when bailiffs refer to tools of the trade it only refers to one set. Therefore if for example if the debtor runs a large hairdressers employing several hairdressers the bailiff only need leave one pair of scissors, one hairdryer, one set of combs etc.

This was an amendment to the 1981 Supreme Court Act in 1996. It states:-

“Section 138(3a)(a)(i) such tools, books, vehicles and other items of equipment as are necessary to that person for use personally by him in his employment, business or vocation”

If a bailiffs’ visit is looming then it is imperative that advice is sought. There are things that can be done to protect a debtor’s assets prior to a bailiffs’ visit.

BAILIFF FACTS / BAILIFF LAW

Types of Bailiff


Private Bailiffs (certified bailiff)

A County Court judge supplies a certified bailiff with a certificate lasting just two years. In order to obtain the certificate the applicant must demonstrate that he is a “fit and proper person” to hold the certificate, prove that they are not in the business of buying debts and that they have adequate knowledge of the law of distress. They must undertake a criminal records check, a County Court Judgment (CCJ) check, provide two references and also a security bond of £10,000 (usually being an insurance bond). Once the applicant has received the certificate it authorises them to levy distress anywhere in England and Wales.

A certified bailiff is not employed by the court nor are they an officer of the court. However, they are viewed as representatives of the court because they act under the certificate issued by the court. Because of this the court sets out strict standards of competence and conduct for Certified Bailiffs.

Only certified bailiffs can carry out the distress for council tax, non-domestic rates and parking fines, rent and child support agency arrears etc.

County Court Bailiff

County Court bailiffs are civil servants employed by the County Courts. They enforce County Court Orders and Judgements. These bailiffs are managed by senior staff at the County Court but they are responsible to the District Judge for their actions (for further info see section 123 of the Courts act 1984).

High Court Enforcement Officers

In this country there are only approximately 70 High Court Enforcement Officers. These are private sector bailiffs appointed to enforce High Court orders and any County Court order that has been transferred to the High Court for enforcement.


Bailiff Rights

Bailiffs do not have the right to force their way into an individuals’ home to seize goods. They only have the right of peaceful entry, peaceful entry constitutes as entering through an unlocked door, an open window even if a fence/gate has to be climbed over to reach it. They cannot damage property i.e. break a window / door. The ONLY exception to this is if the bailiff is from the Collector of Taxes (HMRC), they can get a warrant to force entry but this is very, very rare.

There is NO law that states entry has to be given to the bailiff and he is not allowed to force his way past the debtor to gain entry. They will however use ingenious methods to try and gain entry, asking to use the toilet etc.

There is a code of conduct for levies:-

· Unlawful force should not be used to enter premises
· If the only person present is under 18, the bailiff must depart but they are allowed to ask when the debtor will return. If there is only children 12 or under present the bailiff must simply leave.
· If the police are present, it will simply be to deal with breach of the peace and not assist with the levy. This must clearly be explained.
· Bailiffs should not disclose the purpose of their visit to anyone other than the debtor. Relevant documents should be left for the debtor in a sealed envelope.
· Visits should ideally be made between 6am and 9pm. Visits should not take place on Sundays, Bank Holidays, Good Friday or Christmas Day unless a court permits. Respect for other religions and cultures should be upheld and visits avoided on appropriate festivals and holidays.
· Goods that are clearly those of a child should not be seized.
· Bailiffs should take all reasonable steps to satisfy themselves that the values of the goods seized is proportional to the debt and charges owing.
· A receipt must be given to the debtor when goods have been removed.
· The debtor must be notified of the fees on each visit and of the fees that will be accrued if further action takes place.

Exempt Goods

There are several goods that bailiffs are unable to seize (except bailiffs acting on behalf of the Magistrate’s Court). These constitute goods that are deemed necessary to meet the basic domestic needs of the debtors family such as cooker, clothing, bedding etc. They are also unable to levy on items that are required for use in employment, business or vocation such as tools, goods or vehicles.

It is unlawful to hide or remove goods prior to a bailiffs visit.


Goods that don’t belong to the debtor

If a bailiffs visit is imminent it is wise for the debtor to get proof that the goods do not belong to them. Photographic evidence is also useful at this point, along with a list. Goods that are on Hire Purchase (HP) do not legally belong to the debtor until the final payment has been made BUT there may be circumstances in which these can be seized.

If the bailiff seizes goods that do not belong to the debtor the owner of the goods can then apply for the goods to be returned.

This is a very grey area and advice needs to be sought urgently by the debtor.


Overview

There are lots of grey areas where bailiffs are concerned, it is imperative that the debtor seeks advice.

If the premises are solely commercial rights of entry change and entry can be forced.