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Statutory Demand
Hi all,
In March 2019 I signed co-signed x2 personal guarantees as a director of a company as I was sold a dream business by the previous owner and the insolvency practitioner. One for a differed consideration and the other for asset finance. The business was pheonixed as a pre-pack administration. The information given at the time was promising and demonstrated that the business was viable.
After some internal conflict with the previous owner my business partner and I discovered that the prepacked company was undermined by fraud by the previous owner (which is currently under investigation) which was not detected or raised by the insolvency / pre-pack practitioner (Leonard Curtis) so I question their due diligence.
Due to the extent of the fraud the customer and supplier base was eroded significantly and in September 2019 my business partner and I had no choice but to liquidate the company as it was not viable.
On 13.05.2020 I received a statutory demand from Leonard Curtis for £9000 (differed consideration) which was delivered by hand.
To date I have not received any correspondence regarding the second personal guarantee which sits in the region of £25,000 shortfall.
I am now currently unemployed lodging with my girlfriend, I have no property or assets of any value and have no cash at bank, which I have explained to the creditor. I have also sent them an income and expenditure form as they requested. They have since advised me to take legal action as they plan to proceed with a bankruptcy petition.
I am seeking advice if anyone can help?
In March 2019 I signed co-signed x2 personal guarantees as a director of a company as I was sold a dream business by the previous owner and the insolvency practitioner. One for a differed consideration and the other for asset finance. The business was pheonixed as a pre-pack administration. The information given at the time was promising and demonstrated that the business was viable.
After some internal conflict with the previous owner my business partner and I discovered that the prepacked company was undermined by fraud by the previous owner (which is currently under investigation) which was not detected or raised by the insolvency / pre-pack practitioner (Leonard Curtis) so I question their due diligence.
Due to the extent of the fraud the customer and supplier base was eroded significantly and in September 2019 my business partner and I had no choice but to liquidate the company as it was not viable.
On 13.05.2020 I received a statutory demand from Leonard Curtis for £9000 (differed consideration) which was delivered by hand.
To date I have not received any correspondence regarding the second personal guarantee which sits in the region of £25,000 shortfall.
I am now currently unemployed lodging with my girlfriend, I have no property or assets of any value and have no cash at bank, which I have explained to the creditor. I have also sent them an income and expenditure form as they requested. They have since advised me to take legal action as they plan to proceed with a bankruptcy petition.
I am seeking advice if anyone can help?
