Urgent Help Needed To Settle An Old Issue For My Parents

Hi All,

MODS, couldn't find another forum for this thread, please move if need be.

I am looking for some help from any members from the UK regarding the UK Insolvency Act and Administration Receivership. I have a bit of a story to tell first so that you can get the picture and the reasons why I need advice.

A bit about why I need advice

My mother and father owned a successful motor trading company in Scotland for 37 years. My dad set the company up working from a shed in his garden when he was 21. He eventually built the company up to become the main Peugeot car dealer for Aberdeenshire and Tayside. This is a geographical area of about 13,848km2. At the height of his “career/company” he owned 2 repair shops, 3 petrol stations and 2 Peugeot showrooms and 1 used car showrooms totalling an approximate value of around £6,000,000 in assets.

In early 2001, just before 9/11, his bank (Clydesdale) appointed a new branch manager at his local branch. This was the branch he had used for over 25 years and had a fantastic relationship with the then manager. That manager retired and a new manager was appointed. He was young and inexperienced in my dad’s business. Within 3 months of being appointed, he approached my dad and told him that he had 3 months to reduce his company overdraft by 50%. My dad’s company overdraft was £1,000,000, so my dad had 3 months to reduce it to £500,000 or the Clydesdale Bank would send in receivers to seize all of the company assets to recover the money.

My dad appointed a law company, which he had used before for other matters and knew well. Their fee was £10,000. They advised my dad to lower the overdraft within the time frame. My dad got the overdraft down to £500,000 by the deadline day but the balance was sitting at £500,050. My dad queried this with his accountants who then informed him that “it’s only £50; they won’t be bothered about that. My dad even had the £50 in his pocket.

The next day, feeling like he had kept the bank at bay went into work. At lunchtime, he got a call from the bank saying that receivers were on their way. They arrived at my dad’s work, went through the formalities and told him. You are no longer required, we will be in touch.

37 years gone in the blink of an eye over £50. My dad’s company owned £6,000,000 in assets and now he had nothing (thankfully he still had his house and land). Within one month, the entire company was made redundant, all property sold, creditors paid back and administrators paid. My dad was left with NOTHING.
The garage in Tayside was worth over £4,000,000 and was in the process of being sold to Tesco to turn into a supermarket, the receiver’s pulled out of that and sold it to another supermarket chain for £500,000. The other garages were sold for around £1,000,000. What was left once everything was sold off at a ridiculous price was £127,000. It turns out that the receiver’s bill was £127,000. My dad got a big fat cheque for 37 years and his “empire” for £0.00. It turns out that the one of the lawyers he appointed to help him with the £50 issue later resigned from that law firm to work for the Clydesdale Bank. Is it possible that he knew the £50 would send my dad’s company down the drain and he did it for his own gain?

This was 10 years ago; to this day he suffers anxiety and depression. Once a man of integrity and confidence is now a shadow of his former self. He is 67 and regrets not being in the right frame of mind to go down the next day and buy all of it back with his own money in his bank account. He was severely depressed and didn’t think to do that.

Why am I doing this?

I am a foster child; I was advertised in a newspaper when I was 11 and my mum and dad saw that advert and fostered me. I am now 28 and have 1 child and another on the way. I love my parents very much and it hurts me every time I see my dad. My children love him and my mum so much and I want them to be happy again. Even after 10 years they still suffer. I owe them help. The family has never spoken about it in great depth, what I have typed above is a very basic run through but the main points are correct.

There must be something I can do. How can £6,000,000 be sold for £1,500,000 over £50?

Is there anyone on here who knows their stuff with receivers and taking them to court? I don’t want my parents to pass away and regret not trying to help them…I know understand how important it is to provide for your family. Thankfully my dad was clever with his money and still has a fair bit of it but it’s not the money that I want back for him, it’s the knowledge that what they did to him was immoral and wrong and can’t be allowed to happen.

reply to post by jrmcleod


did you tape record the assurances of the lawyer about that 50 pounds?or the claims of the accountant in voice or written.

Best thing to do with lawyers is to tape their assurances or what they claim.Can be used in court of law to sue them.

I have no experience in this field but I did feel like giving you my best wishes for your Dad.
Stories like this make my blood boil when honest, hard working people are robbed of everything by stinking lawyers!
I pray this gets worked out and he is returned his rightful share.
best of luck,
ATA

reply to post by jrmcleod


Your story just highlights what is wrong with our world today. It's run by banks and corporations that have no interest in people, only money. It's morally and ethically wrong to do what was done to your family, whether legal or not.

Money shouldn't be what is important to banks. It's helping people succeed in life, and further themselves, but this is often overlooked in the corporate world. That's why I will only bank with my small local bank. The people that work there are like family, and will bend over backward to help you. They aren't just in the business to make money, they are in it to be there for their community also.

My sincere condolences to you and your family for something that should never have happened. Your story is one that is all to common in the world, and noone should be faced with such loses over a small handful of money.

reply to post by isyeye

What came to mind is a perceived conflict of interest by the lawyer. I would contact the body that oversees lawyers in your country and make a complaint to them for investigation into the matter. Failing any result from them I would expose this to an ombudsman and even the press.

I once caused an impressive reversal of policy because the government got wind of the fact that a member of my family was a television producer ready to expose all the facts if I did not get satisfaction.

In the meantime, kudos to you for wanting to help. Hugs to our dad.

reply to post by aboutface


Oops. I'm having keypad probs with certain letters. That should have read "your dad".

The Law Society of Ontario is the overseeing body in my area of Canada. If you cannot find the one in your country, drop an enquiry email to the Ontario one. I'm sure they know.

reply to post by jrmcleod


I am assuming you are from Scotland?

If so, after 5 years a debt is statute barred. Statute barred debts are debts which cannot be legally enforced.

This can be handy if you are drowning in debt. As long as you have no outstanding decrees against you, no payments have been made towards the debt for the last 5 years and no written communications with the creditors have taken place acknowledging the debt. It is no longer your debt even if you spent any funds you gained from any type of agreement.

However this works both ways with many financial clams, because it is essentially a debt you are looking to re-claim from another party, if this case is over 5 years old, I am afraid there is nothing that can be done about this for your father.

I am not a lawyer however but I had to spend a lot of my life studying Scots law to get myself out of a very dark financial hole quite some time ago when my home was at threat from repossession etc.

If you are intent on finding out exactly where you stand, go to a lawyer that specialises in Scots Law and ask for a free consultation, there are some that will offer this but I suspect you will be told the case is too old unfortunately.

I hope this helps, its not good news but its an answer although I cannot tell you it is completely correct because it does involve a larger amount of money but I am fairly certain you will find a similar but far shorter explanation if you do go to a lawyer as they certainly do not want people being educated in the law.

I understand everything you have said as well but on the legal side of things it sadly will not matter who said or did what, even if you did record the lawyers advice, the banks or anyone elses advice or promises as it is illegal to record someone unless you state that you are recording them before hand.

Also, the morality of it being wrong, would not be looked at either from a legal point of view. I can appreciate your frustration though, I am just trying to help.

The other option that was suggested with going to the regulators etc, is a good suggestion too but that will not be easy if you are in Scotland because of the age of the case I suspect. However, it does appear that the accountant plays a part in the blame from what you have said? That might just be your window forward.

Personally I think what happened to your family is appalling, especially when your dad followed the advice he was given. I hope it all works out for you.

All the best to you and your family.

reply to post by jrmcleod


it may be too late to do something legally. But i think your best bet might be to tell your story to every newspaper or tv station and maybe someone will tell the story on air and get your family some help

idiot, should of checked out the new one. They probaly saw this comming and introduced the new man, and with all conscious new what was to happen. Probably another buisness who wanted you out of the way. My thoughts.

Your story is an example of what is wrong in the world. I hope your dad gets back his mojo and goes after the people that wronged him. He needs to contact the best lawyer or barrister he can find.

The world is coming to an abrupt and immediate end, soon, and we know this by opening our eyes, our ears, and understanding the reality that is around us.

It is too late to seek out revenge or justice, however, if you put your faith behind the Love of the family and spend as much of your waking hours as you can with one another, peace will be restored and renewed!

As for the bankers, shysters, and any other hands that played a part in this wicked game of Life, one that stomps out the unsuspecting and the weary, they will be granted their rewards as well!

Faith and Love! It is too late to stir up the mud of those evil wicked folks, but, they will wallow in the mire they stand upon!

Sending your Dad my love and appreciation for being strong enough to endure, even if it hurt him, thankfully he does have a wonderful son who cares.

Why didn't he pay the 50£ again?