Need to get this off my chest....

Please don't be upset. Do you feel (even just a tiny bit) better, having written it all down.......?
Your circumstances are way more than my limited knowledge to assist - other than to send you good wishes and heartfelt support.

like others - can't help - sorry. Just wanted to send you big hugs and best wishes. Someone who can help will be along soon xx :Axx

InTheBrownStuff wrote: »

To Sarah and Got2change,
Thank you both for your comforting words.
You're right i do feel slightly better now, but I haven't had a proper nights sleep for weeks and doubt i will until this is over.
I just realised looking at my post that some may think i have 10k so no problems. I forgot to mention it will cost me 5k to go with the fella who works for himslef to sort all issues, or 4k plus vat with the proper company for them to liquidate each company (8k in total plus vat) Plus I still have huge bills to pay in the mean time and no other income.
However to add insult to injury they have told me that they may not be able to do this for me as the receiver or trustee whoever it is would not take kindly to me paying money for insolvency when I had creditors?

Are you supposed to just wait for companies to wind you up then?

I know my issues are complex and as said i don't want sympathy but thanks again for the kind words

Hi,

I've been in your position. I had to wrap up my business and ended up going bankrupt due solely to personal guarantees to the landlord and the bank. I learned an awful lot about the process, though.

Firstly, don't worry about the monies owed by the limited company. You are not liable for any of them, even the VAT.

It sounds like you cannot afford to appoint a liquidator. No problem. Simply write to all the company's creditors stating that the company has ceased trading due to insolvency but that you can't afford to appont a liquidator. Tell them that the company has no assets and has vacated its premises. Make the company's registered office your accountant's office and ask for all correspondence to be sent there. Chances are that most creditors will just go away - there is no point them spending money chasing the debt.

Eventually HMRC will issue a winding up order against the company. This will result in the Official Receiver taking on the job of liquidating the company at no cost to you. You will be called in for an uncomfortable interveiw but that is about it.

Property C will be out of your control - forget about it.

Personally, your main worries are the guarantee to the bank and the old tax bill. I fear that bankruptcy may well be the best way out for you. The silver lining is that the falling housing market means that you probably have no equity in your remaning properties. You will almost certainly be able to keep your home should you go bankrupt, and maybe even the other property if your partner buys you out - for a nominal amount.

Whatever you do, keep in with your accountant. Pay him to the exclusion of everyone else!

Good luck.

Hey ITBS,

Great that you can get this situation `out there`!! Keep talking & when its sorted (...& it will be) hopefully you will share the experience with others & you`ll feel great!!!!

take care & I will be following your thread with interest.

Axx

InTheBrownStuff wrote: »

Re property C, is there NOTHING that would keep this, ie putting company in partners name etc?

The company is an entity its own right, Under law it is treated as if it is a person. The company's solvency will only be restored by a change of ownership if the new owner pumps money into it.

Putting the company in your partner's name will make no difference at all. The company is still liable for the debts to creditors such as the VAT. These debts it cannot pay - therefore it is insolvent.

Property C is simply an asset of the company. All assets will be sold by the receiver and the proceeds used to pay their fees. Anything left over :rotfl:will be distributed between creditors.

InTheBrownStuff wrote: »

Just feel morally really bad on this girl who has been made redundant twice in the last year, split with her long term partner and could do with a break?

This is a laudable sentiment; however she is not your responsibilty. She is not even your tenant. She is the company's tenant. You will find progress a lot easier when you can make this distinction without thinking about it.

InTheBrownStuff wrote: »

If not could I let her live there completely rent free til it's repossessed? If its going to be repod anyway whats the point in her paying rent?
This way she will be able to save enough for deposit, removal, compensation for her improvements to house etc?

That is exactly what you should do. You have a responsibility as a director to cease trading as soon as you realise that the company is insolvent. In your case I would interpret this to include collecting rent from a tenant.

You do not have a responsibility to appoint a liquidator. By letting things take their course until a creditor winds the company up and the Official Receiver is appointed the tenant will get several months grace before either the mortgage company starts repossession proceedings or the OR takes action to evict her prior to putting the property up for sale - probably at auction.

Of course, the OR could take action against the tenant for the rent that she owes the company. It would be in her interests to vacate the property once it looks as though the OR is about to be appointed.

InTheBrownStuff wrote: »

Thanks again for your kind words, agree about the accountant as when this is over I will start antoher business, with a much better knowledge from this.

No big offices, no huge bonuses for staff, flash cars to impress the client, flash nights out etc. Until I have SAVINGS.

Cheers

My advice would be to work as a sole trader for a couple of years, without any staff or overheads. I have finally achieved this, after 25 years of paying big rents and employing staff. I am now earning more than ever with a fraction of the stress! It sounds like you fell victim to the old enemies of ego and greed. Get these out of your system and you can make a nice living - and more importantly a nice life for your family and yourself.

You will come out of all this wiser and better equipped for the future.

Good luck

Walter