HELP own ltd co and need to go join br personally

richiescotland

"The ltd company needs to go into liquidation before the bankruptcy, for the personal guarantee to be included as a debt in your bankrupty." Addictedtochocolate
Does this apply in Scotland as well and how does it work
sorry am a bit confused at moment as everything is all falling down around me

clanbailey

hiya richiescotland I know how you feel - I was initially under the impression all would be taken into account!

aproblemshared

It should be included in your overal bankruptcy, but you should wind up the company first, speak to the national debtline for business they can advise you better.

We did ours through an insolvency practitioner because we were due some money in and rather than clear the overdraft we transferred the money to the IP which is perfectly legal as IP have a right to be paid before creditors. If they were not paid how else would they earn their money, so they can be a preferencial creditor when it comes to a Ltd Com. wind up. We have let deal with all of it and the computer I am typing on now I purchased from the IP for £100 because it was a business computer.

aproblemshared

richiescotland wrote: »

"The ltd company needs to go into liquidation before the bankruptcy, for the personal guarantee to be included as a debt in your bankrupty." Addictedtochocolate
Does this apply in Scotland as well and how does it work
sorry am a bit confused at moment as everything is all falling down around me

Sorry Richie I don't know how it works in Scotland but you should call the business debtline. I don't know the number but someone will come along with it. Alternatively have a look at the stickies at the top of the forum page there are numbers listed on there.

richiescotland

cant fathom all this anymore
accountant says can get a friendly IP but cost of £3k, ( I thought really friendly as he knows my situation) anyway think will be too late as tax, creditors and landlord will get to me first. After the company I will have to go personally Br too, as work seems far off at moment. Family cant help as they too under their own pressures. Will I be liable for personal guarantee after Ltd company goes and then I go BR.?
this forum a great comfort as I know asking silly repetitive questions but all of you are a great help without judging.
Thanks again

aproblemshared

No the PG will be rolled into your BR.

clanbailey

phewy that is what i thought cos it is like (which is for me) having you house repossessed but they have not sold it yet - the negative will be rolled into br. I am going br before business cos I can not afford a IP got to wait until one of the creditors or vat man spits their dummy out and makes the company go br - i have waited nearly a year since not paying them! so cant afford to wait any long for myself.

aproblemshared

Sarah

Worth getting some more advice because if you are a director your bankruptcy may be refused until the company is dealt with. Don't quote me but get it checked out.

Effectively you will be a bankrupt director which is not allowed, I know what you mean about having the money to pay an IP we were just lucky and took advantage of being able to get someone else to deal with it.

There are certain legalities which have to be dealt with when a company is insolvent and ceases trading. You could just write to companies house and tell them you have ceased trading they can send you any information you may need to complete it. I guess if you have no business creditors or any monies owed that may be the best way. But if you have business creditors then they need to be told officially, you need to have a creditors meeting (no one came to ours) to give them a chance to ask why they are not going to be paid. If you just go bankrupt it could be overturned by the OR because the company affairs have not been dealt with.

But get some advice don't panic just ask the question.....

Jo

richiescotland

When should I put key in door? Do I put my hands up and lock the door or wait till someone comes to close me down? Or is that what they would mean for a limited compnay to be illegally trading since i know I am bankrupt? Somedays want to keep going as can get some cash in to live others want to run away and get myself a life away from this debt,

aproblemshared

Richie

I know what you mean about trying to keep going we did. I have to say I am not up on how they deal with bankruptcy in Scotland and are you registered as a company in Scotland or England and Wales because they will probably have different rules for both. You need to get some advice, but the alternative is that yes one of your creditors could make you bankrupt. They can only make you bankrupt if you have personal guarantees for loans etc, if the loans, tax amd landlord are in company name I think they will wind up comapny first and then come after you but may not be able to if you are going banlrupt anyway.

Problem with creditors doing it to you is that it costs them money too so some don't bother if its a small amount owing. Others like the tax man would do it but may leave it for ages before they act (bearing in mind the current economic climate) because they have to be seen giving you a fair chance!! Please get some official advice from the business debtline because they know the rules better than I do. I can only advise you on my personal experiance which is different because you are in Scotland.