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Nicola-mod
Nicola-mod, Moderator
Category: Bankruptcy Law
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Experience:  Moderator
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I am currently in the process of ongoing litigation. My Company

Customer Question

I am currently in the process of ongoing litigation. My Company and I are the defendants of the case. The long and short of the story is as follows:

- My Company and I struck an agreement with another company in that I would sub-contract work to the other company- passing them 70% of the income and I would be a salaried sub-contractor to their company
- The other company in the eight months passed comment that they may wish to purchase my company pending performance analysis but nothing was ever agreed and my company remained my company throughout
- The other company made me a Director of one of their other companies which performed the same activities of the company that I was sub-contracted to (in hindsight this was offered on the basis for administration as they did not want to tie their other company into this one being that it was in a CVA at the time- sadly I accepted given the praise that I was given and I thought that this was a genuine warranted recognition of my performance)
- The relationship became strained and I resigned from the company that I was sub-contracted to and took my business with me as I was lawfully eligible to do
- Initially the owner of this company appeared easy and accepting of my resignation and wished myself and my company the very best of luck and said that the door would be open to any future relationship
- There was some money owing to the company that I sub-contracted work to as I was awaiting payments from my contractors
- I paid this to the company that I was sub-contacted to as and when I received it
- This Company eventually became very intense in their correspondence and plucked ludicrous sums of which they claimed to be owed when in fact the true value was a fraction of their claim- I have all proof of this as I completed in full the administration and finances of the Company and have mandates from my contractor to back this up- they on the other hand did not keep on top of their administration hence their absurd values
- They eventually enforced legal proceedings claiming that I owed them £250k and that they were suing me for breach of fiduciary duties
- I attended court and agreed to not sell my home per their request- this was fixed for six months
- I made an application for strike out of their claim or alternatively to amend their claim (it did not make sense plus they had changed it twice and not provided any evidence)
- Sadly this was lost by myself (even though their Barrister openly admitted pre hearing that they were going to amend their claim anyhow)
- On the basis that I lost this application costs were due to be paid by myself (£4.5k)
- I had been advised that these were not payable immediately which was good for me as I did not and still do not have the funds to pay at present as I am incurring a huge bill from my own solicitor
- The promise to not sell my home consequently has expired and the Claimant has requested an application to extend
- Upon advice from my solicitor, we required some grace to prepare our Barrister for this half day hearing
- In the interim, the promise still stands
- Since interim period the Claimant has sent bailiffs to my house twice for the outstanding costs. Firstly to take a car and a van which have always been registered in my wife's name as these categorically are her possessions
- Because we made this evident the bailiffs have come back to advise that they will seize items from the house that I own with my wife and share with our two year old son
- I have been to court and represented myself to obtain either a freezing on the bailiff's order and/or set up a payment plan to pay this bill- I have to go back to court on Monday to speak to a judge for more advice
- On Monday also, there is a hearing for a date to fix the next application

What I need answers to are:
1. What is the likely outcome to the next application to freeze my assets? I only have my home as an asset- I endeavour to sell this to my wife in order to free some funds to pay for their costs, pay my own legal bill and proceed to defend myself.
2. I have been told to consider bankruptcy- what would be the process? Can I do this whilst still tied into a mortgage and how would this affect my home (please note that my wife severed the tenancy last year)? Could we lose our home?
3. What would your advice be on the current bailiff's situation? I have a good idea of how to prevent them entering my home but at what point can they (if possible) force entry? The Claimant wants the funds in full now- ironically his solicitor sent a without prejudice letter last week which stipulated they would take every legal route to obtain these funds and will even make me sell my home- yet they are pushing an application to disallow me this right??

I look forward to hearing your thoughts and advice.

Many thanks and regards,
James
Submitted: 3 years ago.
Category: Bankruptcy Law
Expert:  tdlawyer replied 3 years ago.
Hello thank you for your question.

In answer to your questions:

1. In order to obtain a freezing injunction, preventing the sale of ones assets, they must show to the Court that there is a real risk that you will dissipate their assets and put they beyond the reach of creditors due to these proceedings. The likelihood of them succeeding depends on the evidence of the risk of you selling your assets, and the level of assets that you have. For example, if you had several houses or additional assets and were able to meet any Court judgment from them,the application would likely fail simply because there are sufficient assets to meet their needs.

2. To become bankrupt you would file a petition in the local County Court asking to become bankrupt. If you show that you owe more than you have, the Court should grant this, and all creditors them become rank equally.

3. A court bailiff can only force entry once they have secured "walking possession" which means that they must have been allowed into the property once already. Other than this - they can only enter with permission.

If you need any of this clarifying, please let me know, otherwise I hope it answers your question and would ask that you rate the answer highly for me. Thank you!

Tony
Customer: replied 3 years ago.

Hello Tony;


Thank you for your replay, I will elaborate on each situation a bit further;


 


1. My current situation is as follows,


 


- I granted an undertaking to my property last year as I thought that this would all blow over.


 


-In march this undertaking came to an end and I explained to the other side that I would need the funds in my home to continue to fight the case litigation.


 


- I further explained that I would be selling my share of the house to my wife.


 


- The financial break down is as follows


 


Value £255000


Outstanding - £213000


Fees for selling - £1300


Solicitor - £1000


Bank Fees - £7000


 


My wife has offered to pay £16000


 


- The claimant said no and requested a freezing injunction


 


- I have submitted to the courts all my bank statements, Credit card statements and the Bank Statements and set out my reasons for wanting to fight the claim as it is based on lies.


 


- The claimant has said I have dissipated assets without providing any proof what so ever apart from they say that one of my relatives called them and told them this information.


 


- Apart from a particulars of claim they have provided no evidence apart from bank statements which shows I paid them in excess of £150000.


 


- They are still saying I am dissapting assets even though I ave nothing to dissipate.


 


Question, What are the chances of them being successful in this application and the reason why?


 


2. The situation here is;


 


- My wife and I were joint tenants of the property


 


- My wife severed the tenancy last year, but has not yet sent the letter to the land registry.


 


- What would be the situation with the home? Would my wife still hold half and would she be entitled to buy the other half from the trustee.


 


The main question regarding the bankruptcy is, if I were to go bankrupt what would happen to the property?


 


3. Is what I need to know regarding the bailiff which has the title of HCEO is as Follows;


 


- What is the difference between a bailiff and an HCEO?


 


- What forms do I need to apply to the court for a repayment plan because the other side is refusing to allow one to be put in place.


 


- Is there any other way I can suspend the HCEO order, whilst we are waiting for the next application which will either wipe out the debt from the last application as it has cost more or release the fees for me to pay for the debt incurred.


 


 

Customer: replied 3 years ago.

Hello Tony


I am on line if you wanted to discuss my question in further detail


 


Thanks


 


 

Customer: replied 3 years ago.


Hello Tony


 


I was wondering if you was gonna come back to my further questions soon, as I can see you have been on line for a couple of hours.


 


I hope to hear from you soon and thank you in advance

Expert:  Nicola-mod replied 3 years ago.
Hello,

It seems the professional has left this conversation. This happens occasionally, and it's usually because the professional thinks that someone else might be a better match for your question. I've been working hard to find a new professional to assist you with your question, but sometimes finding the right professional can take a little longer than expected.

I wonder whether you're OK with continuing to wait for an answer. If you are, please let me know and I will continue my search. If not, feel free to let me know and I will cancel this question for you.

Thank you!
Nicola
Customer: replied 3 years ago.

No I do not want to wait any longer he was online yesterday and just ignored me


 

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