Thursday 26th of November 2009
Gordon Ramsay could face HM Revenue and Customs in court after it claimed he was behind with debt repayments for four of his restaurants, although should you also be struggling with finances, an individual voluntary arrangement (IVA) could negate the need for court.
The judge instantly dismissed two of the petitions because these debts had been paid and the other two have been adjourned after it was heard the chef had put plans in place to make repayments.
While you may not be in debt to the tune of alleged millions, a backlog of thousands of pounds could see creditors apply for you to be made bankrupt, something which Ramsay may want to avoid because then he can no longer hold a company directorship if he wished to do so.
Repaying what you owe through an IVA is a private matter and creditors can not take further legal action if you keep up with repayments. You can also keep your home and the job you hold, whereas bankruptcy could put both of these at risk.
A spokesperson for Ramsay says: "[Gordon Ramsay Holdings] announced it was repaying debts but it would be a process that would take several months and, in the High Court, the judge accepted this was the position."
By Hayley Jones
- House price rise 'may not indicate recovery'
- Equity release 'needs to be increased'
- Need for IVA help could increase as expert predicts reduction in lending
- Government announces 'breathing space' for those needing IVA help
- Lack of subprime lending creating need for IVA help, expert suggests
- Woman who spent thousands on clothes could have been helped by an IVA
