Revenue and Bank Debt Restructuring

 

Situation/Challenges:

1. Client had accumulated significant personal debt over a number of years. The debt was due to a number of institutions, the largest was over €7 million. The client had no legal protection from the debt and there was no capacity to repay the debt from his trading company.

2. Client has a Revenue debt in excess of €500,000 and the trade is deteriorating as it relates to the construction industry.

Action/Solutions:

Actively negotiated the settlement of his outstanding debt:

  • Consensual judgement and receivership to all specified security (value of €300,000).
  • Negotiate a 10 year repayment arrangement with Revenue, commencing with monthly payments of €5,000 per month, subject to yearly review.
  • Cash payment of €50,000 over 12 months.
  • Right of Residency in family house for remainder of natural life with no rent payments.

Client Result:

  • No publicity and no judgement.
  • Minimum legal fees as no lengthy court battles.
  • Reduced stress as negotiation handled in an amicable and no confrontation manner.
  • Client is able to restructure working capital position of the company with other finance providers as a result of Revenue’s support. Company was able to return the trade to profit and discharge the debt.