Ltd company and Bankruptcy

beentheredonethatstilhere

I am sure if you speak nicely to them and explain they will ring you back. NDL did with me.

Tobiwan_Kenobi

I was in a similar position to you back in Feb '09 (I was MD and wife Co. Sec.), when I had to close the business and go BR due to personal debts supporting the business. I also had personal guarantees on bank overdrafts and a car. I had no cash and couldn't wind the business up in the correct manner, so I just closed the doors and walked away.

Admittedly this is far from ideal. I contacted as many creditors as I could and let them know the situation, and it wasn't long before I was receiving letters from Companies House telling me they would strike the business off if I didn't tell them why they shouldn't.

I have kept all the relevant paperwork from the period just in case I need it. I also had a few months of hassle over the car, but I stuck to my guns. Everything seems to have turned out fine in the end - I'm now discharged and working in a decent job with good career prospects. It still pains me that 7.5 years of throwing everything into my business went down the pan, but there is definitely light at the end of the tunnel.

Whatever you decide I hope it goes well for you.

topcat2006

Thanks all for your words of wisdom. Spoke to BDL today and tbh they did not tell me any more than I had already found out googling around. they told me what the options were but did not say if they thought one was better than the other or anything.

Everything came crashing down today as I did not get paid again at the end of the month so it looks like we'll be loosing cars anyway as the finance companies have said that if we dont pay by the end of the month they will come for them anyway. that then will mean I will loose my job and wont be able to get any more work as I have no transport to get there. All good fun!!

Tom

ashellis

Hi there Topcat,

In January this year, I decided to put my Ltd Company into Voluntary Liquidation due to the debts that it had. I could not longer put any further funds into the business, and as I decided to call it quits with the company, I lost around £150,000 personally, and so have nada left.

I was also guarantor for the business bank account, which although was only £15k, I took out a personal loan when I brought the business for £15k, and also put some funding in through personal credit cards etc last year when the recession hit.

I decided to declare myself bankrupt as I have no job now and could not cope with the debts personally, and I must say that although you might be worried and stressing about it all now, it was the best thing I could have ever done.

I went bankrupt 2 months after the last trading day, the company is with the liquidators and will be fully wound up within 6 months, and so I do not have a care in the world now. I can sleep at night !!

When HSBC got in touch with me regarding the Overdraft amount and being guarantor, I phoned them and told them the OR details and have not heard from them since.

My personal loans and credit cards are wiped out, and now me and my family have moved to a rented property (we lived above the shop!), and have started a new life.

Your wife will not be harrassed by anyone unless she is also guarantor for any of the business things.

You will have bad days until it is all over, my business was going for nearly 21 years, and me and hubby put everything into the shop, shame that we did, we should have brought a house instead !!

At the end of the day, you WILL feel better, and once everything with the business is handed over to the liquidators, and if you decide to go bankrupt, you will feel a whole weight off your shoulders.

Then you can move on, get a job that will pay you a salary and holiday pay (a rare thing i know !!) and you can let someone else take all the stress of running a company !!

Good luck with your choices, and if you have any questions regarding the liquidation or bankruptcy, then please just ask !!

xx

topcat2006

Sorry to bring up an old thread - this has been going on for a while now.

On BDL's advice I sold the ltd company and got a job. I managed to settle all but a £30k loan to RBS which the company i sold it too took on. We completed all of the paperwork with RBS and signed it all over.

The company which bought my company went bust in October 2010 - by that time i had left and found another job as i could not take the disorganised chaos.

RBS are chasing me know for the money as I signed a personal guarantee for it (this is what was transferred to the new ltd company) They said I had not signed the loan over to the new company - when I sent copies of the documents they said they were forgeries and that they had no copies. This is despite me following their instructions and filling in the documents that they asked for - and then them taking the direct debit payments from the purchasing ltd company for 6 months.

BDL convinced me to complain about RBS - I complained in May 2011and it has taken until 1 month ago for them to come up with a final answer. They kept sending me holding letters for over a year.

I've since complained to the FSA and they seem to be upholding the banks view that I owe them the £30k. I am still disputing.

BDL seem to be of the view that the next thing left is bankruptcy and tbh at this point in time I would agree as this has been going on for long enough and I'm fed up.

Everyone has told me how to apply for bankruptcy but not how to go bankrupt iykwim.

We have decided that we are not too bothered about the house we live in - we could rent somewhere for about half the price.

Is the done thing to stop paying the mortgage, bills etc on this house, look for a house to rent, move and then declare bankruptcy or would that be looked on unfavourably by the judge and receiver?

Thanks

TC

tigerfeet2006

Do you want to leave the house? Is it in negative equity? Why do you think you need to move out?

Phone National Debtline and get advice on Personal BR

Have a read of the Look Here First:Bankruptcy Help sticky

https://forums.moneysavingexpert.com/discussion/1056083

Ask plenty of questions and read everything you can on here.

topcat2006

Re the house - not bothered either way but can probably rent a lot cheaper than mortgage. It's on the borderline between -the equity depending on who values it.

Yes - I'm reading lots - but there is so much to read that it is confusing. Hence me asking questions.

Thanks

TC

kation

Alot depends on your attitude to time & justice. You could:

a) Declare yourself BR if you can raise the fee. 12 months or less later you are 'free'. You might raise the fee quickly by stopping all payments as you suggested.

b) Let RBS 'stat demand' you and then BR you. It'll take 3+ months at least, but you save the fee.

or c) Fight them all the way and challenge the ombudsman's decision.

topcat2006

The problem I have is lack of money.

Once the FSA have made their final decision my only route left is to take RBS to court which I cannot fund and I do not have the time for.

Hence asking questions about going bankrupt and wether my proposed route above will give me any problems in the future.

TC

tigerfeet2006

Ok then it's house to go. Just needed to check.

Well you are correct, if you wart to get out and rent stop paying the mortgage, secured loans and any debts. Save the money for the deposit, rent, moving costs and for you to go BR. find your rental property, move in and settle in and then file for BR.

When you move out make sure you get your own meter readings and get the utility co.s out to shut them down and take final readings. Tell the council you have moved out so you can get the council tax exemption. Set up a redirect on the post so you can keep an eye on what the DCAs are up to.