Ltd company and Bankruptcy

topcat2006

Hi,

Im looking for a bit of advice.

I have my own company which is a Ltd company and I am MD and my wife is company secretary. At christmas I took the decision to look for work and accepted a job and a salary. currently I am tying up the loose ends in the company and realising the debt left, with only about £1000 left in the bank account for the business.

I have been considering applying for bankruptcy and just need to go and see CAB or someone for some advice, but really with the level of debt I have I think its the best choice.

The debt is mainly for the Ltd company, £45000 loan and amounts yet to be worked out for corporation tax and income tax but probably around another £5000.

The loan is in the name of the ltd company but guaranteed by me and I also guarantee the HP agreement on my car (which I am using personally for work as I travel about 1000 miles per week)

Do I personally need to go BR and that would then close the company as I cannot be a company official whilst BR?
Or would I have to apply for BR for the business and myself?
What would happen to my wife as she is Company Secretary but not named on any of the guarantees?

Thanks for any help with this. Its all a bit worrying but Im glad now I am trying to do something about this as I have been so stressed about it. I haven't even told my wife yet and I know she is going to be so disappointed in me. Fortunately my children aren't old enough to understand yet.

Thanks

TC

immoral_angeluk

CAB won't be able to advise you on business debts. Give Business Debtline a call and they'll be able to advise
http://www.bdl.org.uk/

onward

Topcat...let me give you a little advice from my experience...

I went BR in Feb. I was sole director of Ltd Co. The company had debts, I had debts, and I had personal guarantees.

I took advice (from Business Debtline, part of National Debtline) and went BR, then had to resign directorship. I've since learned a much better way to do it (if you have some assets, say £10k or more) is to put the company into insolvency first, then go BR.

My business is now in limbo - no assets (taken by the landlord), no director, just waiting to fade away. The personal guarantees I included in my BR.

I'd check with your accountant regarding the situation re the secretary (I did not have one). Do keep your accountant informed, well worth the advice.

You can do it in the order I did, it just leaves a lot of loose threads.

onward

I should add that after BR, I got an offer from an IP to deal with the business, but the OR refused to grant sanction for the IP to act on my behalf, as I was not legally allowed to appoint anyone.

The only other option is to appoint a new director before you go BR, so that they can appoint an IP. I did not want to do this as I did not understand the implications, and so did not want to involve anyone else.

onward

Another thing I should add (I wish I thought of everything at the same time ) is that you going BR and resigning does not close your company. It will still show on companies house as an active Ltd Co, just with no director.

topcat2006

Hi Onward,

Thanks for the replies. I have no assets in the business as my business was supplying labour. The car was purchased in December on HP as the van I had caught fire and cost £12,500 and it now has 50,000 miles on the clock so will probably be negative equity on the HP.

I will give bdl a ring next week and go and see CAB.

Do I need to make an appointment to see CAB or can I drop in?
Should I take anything with me?

Thanks

TC

philnicandamy

CAB won't be able to advise you on business debts. Give Business Debtline a call and they'll be able to advise

http://www.bdl.org.uk/

the cab are all appts only usually so unfortunately you'll not be able to just drop in

topcat2006

Now I am confused. I thought I have to speak to the business people about the business and the cab about personal??

I have no outstanding supplier debts only the ones which are guaranteed by me which if the business folds become personal debts.

TC

Trollfever

Your personal guarantees are for business debts which would normally fall outside the remit of CAB.

Business Debtline can be found here:

http://www.bdl.org.uk/

onward

topcat2006 wrote: »

Now I am confused. I thought I have to speak to the business people about the business and the cab about personal??

I have no outstanding supplier debts only the ones which are guaranteed by me which if the business folds become personal debts.

TC

If you've spoken to National Debtline about your personal stuff, and then you ring Business Debtline, they ask for the ref as they merge the info together. Although Ltd Co's are separate legal entities, it is never that straight forward as often personal guarantees are in place.

In short, BDL will cover both business and personal

topcat2006

Thank you all. I will give BDL a ring in the morning.

Has anyone a landline number for them as 0800 is going to be costly on my mobile and I have no other way of ringing them.

Thanks

TC