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Case Study The Little Coffee Shop Of Horrors

11/8/2017 2:19:34 PM Informal Arrangement Case Study: The Little Coffee Shop of Horrors

Mia and Neville have a small business. It is a coffee shop on the outside of a shopping Centre. The Shopping Centre has decided to develop and extend the Centre and the mess they are making has severely disrupted their business. It looks like access will be disrupted for a good 18 months but the reality is more likely to be closer to 3 years. Mia and Neville are counting on a big increase in business once the development is finished.

Business has dropped and they are now having trouble meeting their Debts. They have Personal Loans, Credit Cards, Tax Debts and phone Bills to pay. They also have money they owe Neville's parents.

The business is viable for the next 3 years if they can get their Debt under control.

Fast Debt Help put together a budget that worked out was needed for Mia and Neville to live on. Fast Debt Help then looked at the amount of money needed to run the business and make sure if an arrangement to pay the Tax bill was sustainable with continuing new Tax Liabilities. If new Tax Liabilities are not taken into account, you may be in the same spot of bother next year.  We had to make sure that Mia and Neville's accountant had their Tax and financial position up to date so an informed decision could be made.  They had to have an ongoing payment plan for Tax Liability worked into their budget and a weekly drawing that would enable them to have enough money to live on.

The information was given to the Negotiating Administrator that worked out a payment plan to cover the old Debts, the old Tax bills and a regular payment plan to pay back Neville’s parents.

In this particular case the payment plans had to be for varying times for each creditor and then had to be reviewed, varied and negotiated. Quarterly on some debts, yearly on others. However, this will be handled by the administrator and all Mia and Trevor have to worry about is making sure they pay their weekly payment.

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