HELP own ltd co and need to go join br personally

clanbailey

Hi everyone I need HELP!!!! my husband has run a ltd co and fell ill last year and the co went seriously down hill, we ceased trading at end of sept and owe bank overdraft, paye, and vat and a couple of clients are trying to claim from us. We personally financed the company with cc's so have got in to serious debt with these too as we could not take a wage out of the co for 2 years, the bank has repossessed our house which was very very upsetting and in rented house now. The only pers guarantee on the ltd co is on the bank overdraft.

What do I do first go personally br or wait for either the vat or paye people to make co br??? cant afford to pay for co to go into br and trying to scrap money together for pers br....... oooooooooooh a predicament.

Also if we go pers br first then will the OR take the pers guar on the ltd co into consideration - and the repossessed house as it is on the market for £40k less than what the mortgage was for.

Sorry about all the questions but in advance THANKS for any help
clanbailey

DON79

Hi clanbailey

sorry I am not the expert on how things work with ltd co. but just wanted to say welcome to the forum and hang on because you will get really good help and advice here. so please stick around.

Have you had advice from any of the debt charities? Their numbers are in the stickies at the top of the forum page.

If you are still paying any creditors and the cccs or national debtline recommend bankruptcy, then stop paying your creditors to save up money for the BR fees.

Any mortgage shortfall will be included in the bankruptcy. the important thing with this is do not sign anything at all from the mortgage company which confirms you are still liable for the remaining balance, either pre or post bankruptcy. I think they will also include the personal guarantee. I may be wrong but I think you would be better to wind up the Ltd co. before you go BR. I think there is another thread on here about that so will try find it for you.

Have you got any family who could help with the fees?

Take care and please get some advice.

aproblemshared

Speak to an insolvency practioner first. CCCS may be able to help. You need to wind your company up properly so that companies house are informed correctly. Then you can file for bankruptcy. Any company debts that you have given personal guarantees for will be included in your bankruptcy. The winding up of the company takes care of the crown debts (PAYE, NI and VAT and Corporation tax, these are called crown debts) and you should not be pursued for thwm unless you have been knowingly trading insolvently. Before you go down this route check with Payplan ar CCCS and get some advice first its really important that you understand the implications of bankruptcy before you do it.

DON79

http://forums.moneysavingexpert.com/showthread.html?t=1296133

don't know if you have read it but bailesy27 is has similar questions about the ltd co.

clanbailey

ahhhhh thanks everyone big help - was just surfing around the other posts and found the bailesy27 too. I am off to phone cccs now - did go to see cab but because of the business she couldnt help me which I found really off putting but hopefully these people can help me. Unfortunately family or friends cant help they helped at beginning of the year when we were trying to save everything. With regards to implications of bankruptcy we really have got nothing else to loose - did an IVA at beginning of year which couldnt keep up and credit rating it shot to pieces now and have lost the family home so nothing else to loose :O(

just another quick question - wen you go br personally will we have to do it individually ie me and hubby or is there such a thing of a joint bankruptcy??

thanks again DON79 and APROBLEMSHARED

;O)

aproblemshared

No such thing as joint but you can ask the OR to look at your case together which is what I am doing because most of our debts are joint.

DON79

Hi, it does have to be on an individual basis am afraid so it does mean two sets of BR fees.

It is a bit naughty but if you really cannot raise the fees at all, the OR does turn a blind eye if you take cash from a credit card to pay the fees. It is as a last resort though and if I had had a credit card I would have had to do that but fortunately I managed to get some help elsewhere.

let us know how you get on with the cccs. and there is also a business debtline number. will see if can find that.

DON79

Hi business debtline is 0800 197 6026.

clanbailey

thanks I havent got the money for two individual bankruptcies! bummer but I am on incapacity benefit and i did hear somewhere that if you are on benefits they may waiver fee - ah well will see what they say - going to phone cccs this afternoon so fingers crossed

ta

Addicted2Chocolate

The ltd company needs to go into liquidation before the bankruptcy, for the personal guarantee to be included as a debt in your bankrupty.

clanbailey

ok now I am worried! yikes : the business has ceased trading but not gone into liquidation as we cannot afford to do it ourselves and are having to wait for a creditor to put us in. Our personal bankruptcy court date is 9th Jan - so would this mean the personal guarentee on the business bank over draft will not go into the bankruptcy?? yikes I was under the impression this will be taken into account just like any shortfall on the house repossession. Oh !!!!!! now I am running round in circles and stressing HELPPPPPPPPPPPP anyone ;o( plllllllllease