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Company and Personal Debt Advice for Aberdeen Oil & Gas Sector Workers

Licensed UK Insolvency Practitioners FREE Meeting for Company Directors

We can help with serious company debts, HMRC and creditor pressure, VAT/PAYE/Tax arrears, cashflow problems and raising finance.

Company and Personal Debt Advice for Aberdeen Oil & Gas Sector Workers

Reviewed: 4th August 2016

Once one of the wealthiest cities in the UK, Aberdeen is facing a crisis as the slump in the price of oil continues. Just a couple of years ago the price of a barrel of crude oil was $100 or more. In February 2016, it had dropped to $35 per barrel.

What is the current situation?

The industry’s decline has caused significant job and financial instability for oil and gas sector workers, both in the city and off-shore. Top level executives are being laid off as companies close down, and with little hope of recovery, many are facing huge levels of debt via astronomical mortgage repayments and other types of borrowing.

More than 150 jobs are being lost every day, and from a corporate perspective, it’s anticipated that 43% of oil fields in the North Sea could make a loss if prices don’t rise.

Add to this a rapidly declining local property market, and the outlook for Aberdeen is currently very bleak.

What impact is it having on people living and working in Aberdeen?

As a result of falling oil prices, those lucky enough to be in employment are having to accept lower pay and longer working hours. In fact, concerns have been raised about health and safety as the shifts for off-shore workers become increasingly long.

For those who have already lost their jobs, there’s little prospect of further employment in the area. The sheer level of limited company debt has forced many businesses into liquidation, and a ripple effect is causing city centre shops and restaurants to close as people simply can’t afford to spend on non-essentials. 

On a personal level, the number of individuals facing sequestration is rising steeply. Unsustainable mortgage repayments and excessive levels of other unsecured debt have made it impossible to stay afloat financially.

How we can help via corporate and personal insolvency procedures

Real Business Rescue in Scotland helps directors to deal with limited company debts, as well as individuals facing personal debt problems. Obtaining professional insolvency advice should be the first step when facing such challenges, as there are a number of solutions available.

Corporate insolvency

  • Company administration
    The main aim of company administration is to rescue the business as a ‘going concern, but the company must be viable.  
  • Company liquidation (CVL) and compulsory liquidation
    A CVL effectively means the end for the business, but offers directors an escape route from unmanageable business debt. Compulsory liquidation follows a winding-up order - a process often used by HMRC to recover arrears of tax.
  • Company Voluntary Arrangement (CVA)
    This enables trading to continue if it’s felt that the company has a future. Negotiations are made to repay debts at an affordable rate over an extended period of time, with the agreement of all creditors.
  • Winding-up petitions
    If a winding-up petition has been made by a creditor, they are intent on closing down the debtor company. It’s still possible to rescue or restructure, however, if action is taken quickly.
  • Receivership
    This process is triggered when a secured lender with a floating charge on business assets calls in their loan, because the company has failed in its obligations to repay. The receiver will realise floating charged assets.
  • HMRC debt
    The fact that HMRC are able to act quickly in recovering their money means that tax and National Insurance arrears are a significant problem for companies in debt. A Time to Pay arrangement that offers a breathing space from the threat of legal action may be possible.

 

Personal insolvency

  • Trust Deeds
    Trust deeds offer protection from creditor action, and generally last for four years. A licensed insolvency practitioner negotiates affordable terms which are agreed by creditors. Any debt remaining after the four years is written off.
  • Debt Arrangement Scheme (DAS)
    This is a government-sponsored scheme that allows for all debts to be repaid, over a longer time period.
  • Sequestration
    Sequestration is the term for bankruptcy in Scotland, and is the last resort for people unable to free themselves from personal debt using either of the other two procedures. A debtor’s assets are sold to repay creditors and the process generally lasts for 12 months, after which remaining debts may be written off.

Real Business Rescue in Scotland operates from four offices, one of which is in Aberdeen. If you are struggling with debt due to the oil and gas industry’s downturn, call one of our experts to arrange a confidential meeting free-of-charge.  


Who we help

  • Company Directors
  • Finance Directors
  • Sole Traders
  • Accountants
  • Small Businesses
  • Large Businesses
  • Partnerships

Contact our team

Jonathan Munnery
Andrew MacKenzie
Julie Palmer
Thomas Mckay
Keith Tully
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