IPs instructed about debt management firm

5corpio started a blog post IPs instructed about debt management firm
1 August 2013, 12:03

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IPs instructed about debt management firm

Insolvency practitioners have been instructed about debt management firm Smooth Financial Consultants one week after a winding-up petition was issued against the business. Alan Coleman and Rod Withinshaw of accountancy firm RPG have been instructed – but not formerly appointed as administrators – of Smooth Financial Consultants ahead of a High Court hearing about the company’s future. It comes just one week after a firm called RPS RE A II LLP, claiming to be a creditor of the company, issued a winding-up petition against the business. Withinshaw told Credit Today there would be a hearing in the High Court in the coming weeks to deal with the winding-up petition and resolve the future of the business. The Sale-based firm specialises in debt management solutions such as Individual Voluntary Arrangements, Trust Deeds and bankruptcies for consumers in financial difficulties. Last year, owner and director Mark Broadstock told the Manchester Evening News that annual profits had risen 500%. But the business was also subject to regulatory sanctions in 2010, when the Office of Fair Trading imposed requirements relating to its use of cold calling.....Read more here
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- #1
  
  5corpio commented
  
  7 October 2013, 17:35
  
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  Collapsed debt management firm Smooth Financial Consultants used customer payments to fund a cashflow shortage in the business instead of passing the money to creditors, new documents have revealed. Smooth Financial collapsed on 31 July this year after a winding-up petition issued by a former landlord resulted in the company’s bank account being frozen, preventing staff from being paid. And the firm’s administrators have since identified a deficit of £848,690 between customer payments made to Smooth Financial and monies due to the creditors of these customers. The deficit was revealed in a statement of proposals released by joint administrators Alan Coleman and Rod Withinshaw of Royce Peeling Green (RPG). The administrator’s statement said: “In order to assist cash flow, it appears that the company utilised client account funds above the amount of monthly debt management fees due, to maintain trading.....Read more here
- #2
  
  5corpio commented
  
  14 October 2013, 13:35
  
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  Police have been informed about an £848,690 deficit in the client accounts of insolvent debt management firm Smooth Financial, according to reports. Smooth Financial collapsed in July and proposals released by its administrators last week revealed the deficit related to payments made by 3,500 customers in financial difficulty, which were used to keep the business running instead of paying customers’ creditors....Read more HERE
- #3
  
  5corpio commented
  
  7 March 2014, 14:39
  
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  Smooth Financial directors pursued for debts
  
  The directors of collapsed debt management firm Smooth Financial are being pursued by solicitors for money owed to the company’s preferential creditors. Mark and Josephine Broadstock have been issued with statutory demands to repay debts owed from overdrawn directors’ loan accounts identified by the administrators of Smooth Financial, which collapsed in July last year. Company accounts reveal overdrawn directors’ loan accounts of £158,150, while joint administrator Alan Coleman of Royce Peeling Green (RPC) said the estimated amount of preferential claims is £22,970. The directors have disputed any sums are due.....Read more here
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IPs instructed about debt management firm

IPs instructed about debt management firm