Delta Debt Management & IVA Advice » bankruptcy

Fermanagh businessman declares bankruptcy

Steve Shaw — Wed, 16 Nov 2011 11:37:55 +0000

A businessman who was at one time believed to be Ireland’s richest man has declared bankruptcy after racking up debt problems of £2.4 billion.

Sean Quinn, 64, was the head of a manufacturing and insurance business empire before he was declared bankrupt. At the peak of his career, the businessman was believed to have been worth £3.7 billion.

However, he has now declared bankruptcy over an alleged £2.4 billion he owes to Anglo Irish Bank. Quinn no longer has control of his business empire, but he and his family are currently in the middle of a lengthy legal battle with the bank.

Quinn’s bankruptcy order, confirmed at Belfast High Court recently, is said to be one of the largest ever made in Ireland, or in the rest of the United Kingdom. The businessman reportedly chose to have his bankruptcy application addressed north of the border, as he was born in County Fermanagh and worked there most of his life.

A bankruptcy order in Northern Ireland will also see him back in business in just six years, rather than the 12 years stipulated in the Republic’s courts. However, the Anglo Irish Bank – now known as the Irish Bank Resolution Corporation (IBRC) – is disputing Quinn’s claims to be a resident of Northern Ireland.

Speaking of his decision to declare bankruptcy, Quinn said in a statement:

“I have done absolutely everything in my power to avoid taking this drastic decision.

“The vast majority of debt that Anglo maintains is owed is strenuously disputed. I cannot, however, now pay those loans which are due.”

Fermanagh businessman declares bankruptcy is a post from: Delta Debt Management & IVA Advice

Bankrupt UB40 stars had £750,000 in debt problems

Steve Shaw — Wed, 09 Nov 2011 10:01:43 +0000

Four of the members of the famous reggae group UB40, all of whom went through bankruptcy proceedings recently, have debt problems totalling £750,000.

Drummer Jimmy Brown, saxophonist Brian Travers, percussionist Norman Hassan and trumpet player Terence Oswald were all forced into bankruptcy last month at Birmingham County Court, despite the fact that they sold more than 70 million records throughout their 30-year music careers.

The band members are now said to owe more than £750,000 to various creditors. Mark Sands, a spokesperson for the firm which is handling the bankruptcy, RSM Tenon, told the Sunday Mercury:

“The amount we are looking to recover is £750,000″

“We will assess their assets, which includes their properties and earnings, and see what we can get back.

“It may be that they don’t have anything, in which case we will look at them, then move on. It might be they have £100,000 equity in their homes.

“If they can give us that amount, or close to that amount, in cash, then we won’t go to the lengths of them selling their homes.”

Although he could not say how the members of UB40 managed to lose or spend all of their money, Mr Sands did confirm that most of the band’s debts were to HM Revenue & Customs and to the creditors of DEP International. This was UB40’s own company, which has now gone bust. In some good news for the band’s fans, however, Mr Sands did say that the musicians could continue to play, because their earnings can be used to tackle their debt problems.

Bankrupt UB40 stars had £750,000 in debt problems is a post from: Delta Debt Management & IVA Advice

NFL star Mark Brunell files for bankruptcy

Steve Shaw — Mon, 07 Nov 2011 16:16:13 +0000

The National Football League (NFL) player Mark Brunell has reportedly filed for bankruptcy after racking up debt problems totalling $24.8 million.

Brunell, who formerly played for the Jacksonville Jaguars and is now a quarterback for the New York Jets, revealed that he filed for bankruptcy back in June. Despite earning around $50 million in his career so far, the US player has blown nearly all of his money on investments including nine businesses and projects.

One of the companies Brunell invested in along with his former teammates Todd Fordham and Joel Smeenge was Champion LLC, in which the quarterback invested $11 million.

The company had to borrow $2 million in order to buy a number of high-end Jacksonville properties so that condos could be built on them. The Jacksonville Jaguars teammates were guarantors of the loan, so had to cover repayments with their own money when the property bubble burst and the company began to founder. Brunell lost his entire $11 million investment, and he and his wife are now facing a lawsuit for defaulting on the loan.

In total, Brunell is the subject of six lawsuits over his debt problems, and he has already had to sell his $9.5 million home to pay what he owes.

Commenting on Brunell’s unfortunate financial situation was Michael Huyghue, the commissioner of the United Football League, who told Action News Jax:

“Athletes are at the highest end of the risk spectrum. When you think about what they do for a living, the risks they take with their bodies and their lives to go and play the game, so they are more inclined to want to agree to the most high risk investments.

“The consequences when they are wrong can be really debilitating.”

NFL star Mark Brunell files for bankruptcy is a post from: Delta Debt Management & IVA Advice

Stranraer named bankruptcy capital of Scotland

Steve Shaw — Tue, 01 Nov 2011 14:42:36 +0000

An MP has named Stranraer the bankruptcy capital of Scotland, after figures were released showing that the region has one of the highest rates of bankruptcy per 10,000 residents in the country.

The figures showed that 49 of the 10,000 residents covered by Stranraer’s Sheriff Court were declared bankrupt in the period 2009 – 2010. This is significantly more than the 25 per 10,000 residents who faced bankruptcy in the Sheriff Court’s other towns – Dumfries and Kirkcudbright.

The MP for Dumfries and Galloway, Russell Brown, spoke to The Galloway Gazette about the worrying new figures, and expressed his alarm about the debt problems faced by people in Stranraer. He said:

“These shocking figures lay bare the scale of the crisis facing local people. Stranraer is the bankruptcy capital of Scotland and has twice the level of insolvencies of Dumfries or Kirkcudbright. It shows the alarming nature of the financial difficulties facing the west of our region in particular. Every one of these bankruptcies is a personal tragedy because it means a family struggling to pay bills and keep food on the table.”

The MP also touched on an issue that has been discussed quite a lot in the press recently – payday loans and the companies which provide them. He condemned such companies for offering loans which had “ludicrous interest rates”, whilst the people who relied on them to cover basic living costs were not properly informed how much they would be paying back.

Stranraer named bankruptcy capital of Scotland is a post from: Delta Debt Management & IVA Advice

Owner of fire-ravaged garage faces bankruptcy

Steve Shaw — Tue, 01 Nov 2011 14:39:30 +0000

The owner of an MOT centre in Rhyl which was nearly completely destroyed by fire has been left facing bankruptcy due to a row over planning permission.

Terry Ledden, the owner of the family-run garage in Ffordd Las, is not able to rebuild his fire-damaged business until the council grants him planning permission.

Rhyl Town Council is withholding permission due to objections over Mr Ledden’s wish to extend the garage when it is rebuilt, so as to include a purpose-built taxi operator’s office too. Planning officers are refusing the application on the grounds of highway safety and concerns over parking.

However, Mr Ledden already lost thousands when his business was subjected to a vicious arson attack. A 12-year-old boy has reportedly been arrested over the incident, which caused approximately 500,000 in damage. Every day that his business remains closed is costing Mr Ledden more in lost profits, pushing him nearer to serious debt problems and maybe even bankruptcy.

The garage owner spoke to the North Wales Daily Post about his situation, saying:

“The cost of the damage caused by the fire has already proved immeasurable. All I want to do is get my business back up and running but I honestly feel like I’m being penalised for trying to be successful.

“This economic climate is hard enough and now I’m forced to consider laying people off or be pushed into bankruptcy because the garage is integral to both businesses.

“I can’t demolish the garage, which is an unsafe structure, and rebuild it to include a taxi office until the plans are approved.”

Owner of fire-ravaged garage faces bankruptcy is a post from: Delta Debt Management & IVA Advice

Is the bankruptcy left as the way out for my debts

Atiq — Thu, 29 Oct 2009 00:13:32 +0000

Do you think that the bankruptcy is the only way left? You may be one of thousands of people who have to face rising debts that seem absolutely impossible to pay. Of course the bankruptcy is not the most pleasant event for everyone even if a person is head over ears in debts but still it is a fecund option. Once you have made up your mind to make such a step, you have to realize that there are many wrong ways so you should know some things to take them into consideration.

First of all it is necessary to mention that the bankruptcy does not mean your failure or you giving up. Sometimes people find themselves in the situations that seem absolutely hopeless and uncontrollable, and all the ways to handle the debt appear to be vain and nothing seem to help you to deal with a current financial problem. In a similar situation a bankruptcy could be the best way out. The main reasons for it are that then you will get a clean slate and have another chance to built an own business.

The bad thing is that inevitably the bankruptcy makes the credit report stained and this is hard to comprehend for those with a perfect credit. Though it is the excellent credit that often contributes to a situation when debts become unmanageable.

Some people reject bankruptcy because they think that in that case nobody gives them a credit in next few years but this is not true. If a person had a good enough credit before, it would not a problem to get a new credit mainly for the reason that any creditor is aware that an income without the bills is usually very high. Though such credits will be low-limited and have high interest, still they are valuable especially if you are able to control card usage.

Another reason against the bankruptcy is that people are afraid that they will not be allowed to purchase a house for a few years but this also not always comes true. There were cases when creditors offered a home loan in a year and a half after the bankruptcy.

Before filing your bankruptcy you should reassure that you know all laws needed and are aware of what it may require. Some assets can be exposed that is not good. Besides, bankruptcy not always delete all the debts, for instance, student loans are not intended to be canceled.

It is very essential to find a good respectable bankruptcy lawyer. It is a person that can help you to deal not just with filing the event but also to finish with annoying lenders. Hiring such a professional can cost you a pretty penny but it is definitely worth it, because in the end you see how much time and money it will save you.

Is the bankruptcy left as the way out for my debts is a post from: Delta Debt Management & IVA Advice

What Are Some Ways I Can Avoid Bankruptcy?

Atiq — Fri, 14 Dec 2007 00:04:21 +0000

While bankruptcy may seem like an attractive, short-term solution to alleviating debt, the process usually hurts people more than it helps. It can take years for your credit to recover from such a maneuver; you may not be able to get financial assistance if and when you need it after filing for bankruptcy. Since this is the case, it can be helpful to be aware of what alternatives exist so that you can avoid bankruptcy but, at the same time, still help yourself get out of debt in a timely manner.

As soon as you feel like you are having financial troubles, create a budget. This will help you to see what income is coming in and how much money is leaving your hand as expenses. Take the time to track your spending and see the patterns that may emerge. Look at your problem areas and see what can be done about such issues. Avoiding bankruptcy may be as simple as adjusting your priorities and being aware of how much money you spend, where and when. Next, organize the way you pay your bills. Individuals who only pay the minimum amount of their bills will not only extend the amount of time that they spend in debt, but they will also have to pay additional fees in the form of interest rates and such. When one bill is paid off, take the amount of money that you would have been spent on that bill and apply it to your next bill, in order to get out of debt with that next bill. Try not to see that money as extra money, since you are still in debt and have additional bills that need to be paid.

Professional help may be the best route if you are not able to gain any relief from creating a budget and tackling your bills in an organized and focused manner. A debt management plan can be created for you by an informed and educated professional. Typically, these plans can last five years – but at the end of these five years you will be debt free, which is a great long-term goal to stay focused on throughout the term of your plan. The counselor that you work with will handle all of the correspondence with your creditors and that can be a big relief in and of itself, since you can stop getting calls and interruptions from debt collectors. Another option is that a debt consolidation loan that may be applicable to your case. If your credit rating is lower, it is likely that you will have to pay higher interest rates for this loan. With this loan, all of your bills are combined and you will make one payment each month, an amount which is typically much lower than the amount that you would have been paying for all of the separate bills and debts separately each month.

You can also look at your personal lifestyle and situation. If you have a large house, you may want to sell it and move to a slightly smaller house. The same can be said if you have a top of the line car – you can get a reliable, but less luxurious car – and you may be able to earn some money from selling the vehicle.

What Are Some Ways I Can Avoid Bankruptcy? is a post from: Delta Debt Management & IVA Advice