THE CHARTERED INSTITUTE OF LEGAL EXECUTIVES UNIT 8 PERSONAL INSOLVENCY * SUPPORTING MATERIALS

Transcription

1 9 June 2015 Level 4 PERSONAL INSOLVENCY Subject Code L4-8 THE CHARTERED INSTITUTE OF LEGAL EXECUTIVES UNIT 8 PERSONAL INSOLVENCY * SUPPORTING MATERIALS Information for Candidates on Using the Supporting Materials This document contains the supporting materials for your examination. You have 30 minutes reading time to read the supporting materials and question paper. It is strongly recommended that you use the reading time to read the supporting materials and question paper fully. However, you may make notes on the supporting materials, question paper or in your answer booklet during this time, if you wish. Do not turn over this page until instructed by the Invigilator. * This unit is a component of the following CILEx qualification: LEVEL 4 DIPLOMA IN DEBT RECOVERY AND INSOLVENCY Page 1 of 8

2 INSTRUCTIONS You are a trainee lawyer at a firm of solicitors, Kempstons LLP, The Manor House, Bedford, MK42 7AB, where you assist Supervising Partner, Rebecca Webb. You arrive at the office to find the following documents requiring your attention: DOCUMENT 1 DOCUMENT 2 DOCUMENT 3 from your Supervising Partner concerning William Hudson Attendance Note re Bedford Street Finance Limited Attendance Note re Sophie Russell Page 2 of 8

3 DOCUMENT 1 FROM YOUR SUPERVISING PARTNER CONCERNING WILLIAM HUDSON From: To: Date: Re: partner@kempstonsllp.com legalexec@kempstonsllp.com (Today s date) William Hudson (Personal Debt) I have a meeting with William Hudson (WH) later today. WH is experiencing financial difficulties. WH lost his job earlier this year and he has recently set up as a sole trader running a horticultural business. While he is establishing the business, he needs to keep his creditors at bay. WH is confident that he can repay most of his debts within the next 12 months or so, but meanwhile he must try to prevent legal action being instigated against him. One creditor in particular, HortiPlant Limited, is threatening legal action. WH s debts are unsecured and amount to approximately 28,600. These debts were incurred when he set up his horticultural business as he needed to buy equipment and a van. WH s business is now bringing in a regular income and his client list is growing. He is confident that he will have a full work diary for the next six months. I need you to help me prepare for this meeting. Page 3 of 8 Turn over

4 DOCUMENT 2 ATTENDANCE NOTE RE BEDFORD STREET FINANCE LIMITED Date: Client: File No.: Matter: (Today s date) Bedford Street Finance Limited BSFL/0017/1 Debt Collection from Joshua Sealy Telephone conversation with Melissa Portland (MP), finance director for Bedford Street Finance Limited (BSFL). MP requested a meeting to discuss establishing a retainer with the firm in relation to debt collection matters. BSFL s credit controller recently left the firm, and BSFL is considering sending the debt collection work to an external firm and not replacing the role. MP has asked for advice in relation to one particular debt collection case relating to Joshua Sealy (JS). MP will forward the files for review prior to our meeting next week, but explained that JS owes BSFL money in respect of a personal loan taken out for home improvements. The balance owing is 9,500. MP has provided the following information about JS: Occupation: Director (sole director of a small painting and decorating company). Family: Married, 2 children under age of 15 years. Assets: 146 Kenneth Lane, Bedford (detached, 3 bedrooms). Until 6 months ago, the property was registered in joint names with his wife, but has recently been transferred into his wife's sole name. The property is the family home and has an estimated market value of 365,000. Other: Having looked at JS's credit file, BSFL has noticed that 3 months ago, JS paid off the balance of money owing under a hire purchase agreement, even though the agreement still had 12 months to run. MP will arrange an appointment early next week to discuss the above. Page 4 of 8

5 DOCUMENT 3 ATTENDANCE NOTE RE SOPHIE RUSSELL Date: Client: File No.: Matter: (Today s date) Sophie Russell WH/001SR/001 Debt problems (personal) Attending Sophie Russell (SR). SR is experiencing financial problems. SR currently owes 11,500 on various store and credit cards. A number of these companies are starting to threaten legal action against her. SR was made redundant three months ago. She received a lump sum of 1,500, which she has used to pay her rent and other essential outgoings over the last three months. She was unable to pay any of the instalments due on her store and credit cards. She only has 200 left in her savings account. SR has just found another job but she will be earning significantly less than in her previous employment. She has worked out that, after paying all her essential outgoings such as rent and other household expenses, she will only have per month left. Agreed that I would outline SR s options and advise by . End of Supporting Materials 2015 The Chartered Institute of Legal Executives Page 5 of 8

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