Hi, ive just been on to you reg boi, can you tell me do the recievers freeze your bank accounts as well if they are not with the same bank, i cant see the logic in what theyve done. is our family home safe at this point, im not sure about this procedure,
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1. A receiver does not freeze any bank account. The receiver will take over the running and operation of all the bank accounts belonging to the two companies. In effect, the receiver will go to the bank(s) where the companies' accounts are and serve a copy of his appointment upon them. This will then mean that he will take over the operation of the companies' accounts. None of the personal accounts of the directors will be affected, only those belonging to the companies. I don't know where you have got this idea of "freezing" accounts. I already pointed out to you in the previous answer that there was no "freezing" of accounts.
2. None of your own personal assets are affected by the appointment of the receiver. Not your home, not your bank accounts, nothing. Your solicitor should have explained this to you. The receiver only has power of the COMPANIES' assets. None of your assets, nor the assets of your husband are affected. However, if you have company cars, then these will be affected and if necessary, you will have to hand them over to the receiver or else agree to purchase them from him.
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firstly ive paid a second time just so you know,for an answer, weve personal guarantees, and a charge on the companies, as advised by our solicitor, so does this mean weve no control now on any income or outgoing from them? id like to talk to you outside of just answer if u could accept credit card payment, anyhow, our solicitor said we cant accept any money on any of the companies or trade, hes said we shouldnt meet with reciever, he said we shouldnt have bank acc with money in our names, he said we shouldnt meet with reciever, its no benefit, and the letters he drafted for us was agressive up to now, i think the two solrs ie bank solr and ours have another ajenda, apologies for my inuenda, we did have a good relationship with our local branch.
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We have guarantees on the loans, while i dont think we have personal guarantees, and my husband agrees, our solr, said the loans have guarantees which will spill over to us personally. so not sure where we are there, theres loans in our own names and company names??
3. Personal guarantees will mean that you personally can be followed for the debts guaranteed. If these are company debts you have guaranteed, then that means that everything you own, including your house, is liable to be sold to pay the debts. Guarantees are dangerous things to sign. However, if you only have guarantees in relation to personal debts, then this is not a cause for concern.
4. Secondly, you will no longer have any control over income or outgoings from the company accounts. This is now under the control of the receiver. IF there is another agenda, among the bank and your solicitor, it is usually because there is something valuable which can be sold to a connected party. This is not unusual in a receivership. However, you are better off meet with the receiver as being uncooperative only reflects badly on you and curtails any further ability to negotiate with the bank. There is no point in being aggressive if you have a weak hand to play. Here the bank has simply called your bluff and appointed a receiver. FRom here on, you have lost control of your business and it is likely to be sold. I would agree, however, that you should hide any cash you have personally and leave nothing in your bank accounts. However, once a receiver has been appointed, you cannot touch the company's money.
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Barrister 17 years experience
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The banks have four apts they have not got security on, it is in a company that the reciever has not served anything on, can the bank get an injunction on this as this company is no charges or anything with the bank.
Also, i have another company that was called in under the reciever, with a small overdraft, we can clear the overdraft to the reciever or the bank, not sure, but if we approach the reciever, on this are we ok. to have the co back.
As far as companies are concerned are they not liable for the debt to the company only is it not limited liability.
5. At this juncture, you need to be sure, from checking your documentation that there are no cross-guarantees by one company of another company's indebtedness. This is the only way you will ensure that there is a firewall between the banks and this company which has four apartments and over which the receiver has no charge. Secondly, you need to be sure that any shares in this company in relation to which the banks has no security, are not held by your husband or by yourself if you have given guarantees of the overall indebtedness to the banks. This is the only way in which you can ensure that this company and the four apartments contained in it remain outside the reach of the bank and the receiver. It is essential that you safeguard the situation now so that you have something left after the bank and the receiver are finished.6. The position is the same in relation to the second company you refer to which has a small overdraft. It is only worthwhile paying off this overdraft if there is no cross guarantee given in relation to another company and that you have not given a personal guarantee for all the indebtedness of the bank. If this is indeed the case, then you can consider paying off this overdraft and getting rid of the receiver.7. Be aware that if you have given a personal guarantee to a bank for a company(s) indebtedness, this will remove the effect of limited liability. So you need to check your documentation and make sure your solicitor reads his papers to know the situation here.
I have an Indenture signed on behalf of one of the companies the one with the small overdraft going back to 1990, signed by both of us, it seems to be a basic doc. and another one for
the company in 1998 an "Debenture", so is this a personal guarantee or am i ok in paying the reciever off for the overdraft. no other guarantees exist for this co.
Thanks a lot.
8. An Indenture is different to a Debenture. A Debenture is basically a charge. Neither a debenture nor an Indenture is a guarantee. Accordingly, if this is the extent of the documentation you have signed, you are Ok to pay off the debenture/charge on this company and get the company back from the receiver. However, you stated in a previous post, that your husband had given guarantees over all the companies for the indebtedness run up. YOu haven't said whether you did or not. It is OK if you haven't given a guarantee. but if your husband has, then this asset, if the shares are in the hands of your husband is liable to attachment for any judgment obtained on the guarantee. Accordingly all shares in this company should be transferred out of his name. And also should be transferred out of your name if you gave a guarantee of all the companies' indebtedness. Otherwise, you will loose it to a subsequent judgment.
tks a lot, iv a persnl guarantee signed on behalf of a partnership which includes my husband, the guarantee is limited to the value of the asset, im texting the wording, please confirm..
"Subject to clause.. the total amt recoverable agnst guarantors under this deed shall be limited to the net proceeds recieved from realising their interests in the charged assets, subject to a max limit of .....together with interest and comission thereon and all costs, charges and expenses payable by the guarantors under this deed provided always that their limit on liability containted in cluase ... shall, to the exent specified cease to be no effect as regards XXXXX XXXXX if ...
is this limited liability or does it spill over to the family home
9. This guarantee is limited to a maximum sum or the value of the charged assets. It is extremely rare that guarantees are limited in this fashion. It effectively limits the extent of the guarantee given by your husband and his partnership to the bank. In this instance, liability is limited. However, it is not limited to the value of the charged assets as if the value of the charged assets fall below the stated maximum sum, then all other assets, including the family home are potentially at risk. Accordingly, at this stage, you need to assess if the value of the charged assets is greater than the stated maximum sum. If the charged assets still are valued above the maximum sum, then you have a measure of protection. However, if they are property assets whose value has collapsed, then you have to be aware that your husband's other assets may be a risk.
I would greatly appreciate a private consultation if possible, i can provide a temp prepaid tel no so you can text me your contact number
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