Business bankruptcy

Nomexnomad

Not sure where to start with this except to say i didn't want to get to the state i am now in.

I have run my company for 10 years without hiccup and have always paid my taxes. However, more recently i have had a succession of problems worst of which was my eleven year old daughter falling ill.

I ran my company as a LTD company as a one man band supplying services, and i realise the 30% rule to funds in your business account. This said i now find myself in the position where i owe 18months worth of corporation tax and zero funds in my business bank account.

I feel my only route is to go bankrupt and i'm not even sure how to do that. What i know for certain is i dont have the money to pay it and i dont want to go to prison.

Any help would be greatly recieved, or if anyone has gone down a similar path, or if anyone knows somone decent to talk about it....

BroadeningHorizons

I semi know the feeling to this. Within months of starting my own business my eldest son was rushed into hospital for a life saving operation and i spent the next few weeks working from the hospital car park, after that when I eventually got premises I ended up in hospital myself for a couple of weeks and since then I've had a succession of upsets, from clients going bust leaving me to pick up the pieces to my old offices being burnt to the ground by some teenage yobs messing around outside and having the insurance company inform me that I was massively under insured.

I'm now at a point where I'm practically here 24/7 trying to fathom some way to get money in to pay the rising debt that's coming at me from all sides while my clients are pleading poverty and taking their time to pay me.

Sadly I'm not a limited company, it's a partnership and I'm not sure where to go myself. People have suggested bankruptcy but with a wife, three kids and a mortgage I don't really want to do anything that could end up screwing me over for a number of years and stop me getting out of it.

I wish you all the luck in resolving your situation and hopefully someone can offer us some suggestions on how to solve our respective problems.

SAFC73_2

I'm in a similar situation to the original poster.

Opened my own business 7 and a half years ago with bright prospects. Now I'm thinking about bankruptcy being the only way out the mess I'm in. This isn't the first time I ahve thought about this.My one hope to try and resolve this has bitten me on the backside so I feel quite low about things.

I just feel it would be a huge weight off both mine and my parter's shoulders; we are both worried at the state my health is in because of my circustances.

My debts both business and personal outweigh any assets I have by quite a big margin.

I would also be ashamed of the stigma of having a failed business and being BR.

Any advice?

patman99

With a LTD company, you can simply fill-in some paperwork for Companies House and HMRC declaring the company insolvent.
Unless you have personnally guaranteed any loans (i.e using you house as collateral), then you will owe nothing and are free to start again with no comeback.

I had to do all this when my business became financially un-viable, so I speak with experience.

now

SAFC73 wrote: »

I'm in a similar situation to the original poster.

Opened my own business 7 and a half years ago with bright prospects. Now I'm thinking about bankruptcy being the only way out the mess I'm in. This isn't the first time I ahve thought about this.My one hope to try and resolve this has bitten me on the backside so I feel quite low about things.

I just feel it would be a huge weight off both mine and my parter's shoulders; we are both worried at the state my health is in because of my circustances.

My debts both business and personal outweigh any assets I have by quite a big margin.

I would also be ashamed of the stigma of having a failed business and being BR.

Any advice?

No shame in BR or have tried and not suceeded (not failed) do not worry about what other people think, it is nobodies business and if they choose to make a coment ask them why they want to know, that normally sends them away with a red face. We went through this and yes it is not nice but you tried

now

Nomexnomad wrote: »

Not sure where to start with this except to say i didn't want to get to the state i am now in.

I have run my company for 10 years without hiccup and have always paid my taxes. However, more recently i have had a succession of problems worst of which was my eleven year old daughter falling ill.

I ran my company as a LTD company as a one man band supplying services, and i realise the 30% rule to funds in your business account. This said i now find myself in the position where i owe 18months worth of corporation tax and zero funds in my business bank account.

I feel my only route is to go bankrupt and i'm not even sure how to do that. What i know for certain is i dont have the money to pay it and i dont want to go to prison.

Any help would be greatly recieved, or if anyone has gone down a similar path, or if anyone knows somone decent to talk about it....

Go and talk to an insolvencie practitioner best think we did was share our woes xx and try not to worry others are in a bigger mess just think of Conaught and the Leeman Brothers you are not as bad as them are you?

Nomexnomad

With a LTD company, you can simply fill-in some paperwork for Companies House and HMRC declaring the company insolvent.
Unless you have personnally guaranteed any loans (i.e using you house as collateral), then you will owe nothing and are free to start again with no comeback.

Is it as simple as this sounds? We are talking about unpaid corporation tax? If so this is excellent news!

And thanks to "now" i never knoew there existed an insolvency practictioner! I will search for one to go see!! :j

tigerfeet2006

Give Business Debtline a ring and talk through your options with them. Their link and number are in my signature. They are busy at the moment so you may have to spend quite a while on the redial button.

Flyright

It is not that simple, HMRC can and will object to the striking off of a company if there is outstanding tax.