Finacial problems

[justlead1]

Hi. A plumber, only 25 years old very good and qualified. Has been knocked by a client. As a result he owes £11000 to a merchant where he held a credit account. He asked me what to do. I suggested he tried to negotiate with the people he owes, with the aim of spreading the amount over say 9 months. He is considering going bankruptcy, as he don't know which way to turn. Has anybody any knowledge of this sort scenario. And a possible way forward.

 

[andyg0507]

probably best giving citezens advice a bell mate, they'le point him in the right direction.

 

[mrlennie]

Wow no I wonder whether the merchant will be understanding they must deal with this sort of thing all the time.

 

[Gray0689]

£11k on one job he was mad letting it get to that but for that he needs to seek legal advice citizens advice a good first step

 

[tamz]

He could try negotiating and work his way through it. Tell him to go in and see the manager and explain what has happened. It might work as if he goes bankrupt they get nothing. If he does go bankrupt it will fk his credit rating for years.
I sympathise with him on this one. Its a hard knock to take especially when you are starting out.
I was bumped for 17k last year by a builder who went bust but fortunately i'm big enough to take it. As usual the receivers and the banks took all the cash and the trades got FA. Bstds

 

[pcollins]

I'd definately suggest Citizens Advice Bureau. I know of a couple of friends in situations where they owe more than they can pay and have agreed debt management plans with their creditors, administered by charitable organisations. I'm not sure whether the same could count as its a trade credit account but definately worth a try. If so make sure they go with a charity/government run/approved body - there are so many people out there who'll set this sort of thing up and take money from you for doing it, when the same service can be done for free.

I'm not sure I'd suggest bankruptch, partly cos it'll knacker the credit rating, but also I think in the back of my mind that it could cause problems if your friend ever decides to become a ltd company (I could be wrong on this mind)

Hope all works out
Paul

 

[justlead1]

Thanks Guys. I will be seeing him today and will pass on the points raised in an effort to bring some comfort to the situation he finds himself in. Good Luck

 

[WHPES]

Has the client gone bust? If not, he needs to be taking action against the client to recover debts.

 

[justlead1]

Yes Whpes the contractors have done bust and they had him on a bit of string, he over invested time and materials.

 

[WHPES]

Can he recover some of his materials? After all they are legally still the property of the merchants until paid for.