How did everything begin? It began in October 2006, when my wife and I leased a public house from a pub company. Initially, the contract was month-to-month, which meant that we could leave or they could terminate our monthly contract. Initially, we paid £200 per week in rent and purchased all of our beverages from Pub Co. We paid in cash for our orders in advance. After approximately four months, they demanded that we sign a contract immediately or they would reinstate the """"TO LET"""" sign outside the pub. We felt that was quite severe. Ultimately, they were frantic for us to acquire this bar. We started with less than $2,000 for this venture. Regardless, we signed a five-year lease. This meant that they would now deduct rent, orders, etc. directly from our bank account. Unfortunately, that only lasted a couple of weeks.
The business account began to accrue a deficit. After consulting with my credit controller, we returned to cash on delivery. Prior to receiving our beverage order, we were required to pay and either fax or email the receipt to the Pub Company's headquarters. That occurred every week. Nightmare. As weeks and months passed, we fell behind on payments to everyone. We also experienced cash flow issues. The money I earned ""today"" would be spent ""tomorrow."" Incredibly, this lasted approximately two years. One year after signing the lease, we sold our home in order to fund the business. Unfortunately, the proceeds from the sale of the property vanished almost immediately. It was a trying period, filled with daily anxiety. It was so terrible that I didn't answer any phone calls and didn't read any mail for days.
After only a few months, I had ceased paying the accountant. They demanded £250 per month. I continued to handle the accounting myself. Using a spreadsheet, I tallied the results myself. I continued to receive quarterly VAT returns with dreadful estimates. I also disregarded them.
One of the worst things that occurred was that dozens of debt letters continued to arrive. They threatened legal action, business closure, and all other measures. Finally, it came to the forefront. We naturally went to the Citizen Advice Bureau for assistance. We consulted with the Debt Advisor, who advised us on whether or not we should pursue this path. I gathered all of our business and personal debt correspondence. We scheduled another meeting with our advisor. The documentation was left with the consultant. After a week or so we were back.
As business companions, we had to declare bankruptcy independently. He had completed the necessary paperwork, which we then signed. Then, I went to a bank, paid the required fee of £100 each, received a receipt, and enclosed the required documents in an envelope before mailing it to the Accountant in Bankruptcy. We were pronounced bankrupt within a matter of weeks.""
" - https://www.affordablecebu.com/
