Insolvancy practisers

trish22_2

Do these people always charge up front on a ltd company,we are struggling,and the guy we have been put in touch with,wants this amount before he wll help us,in he meantime we are having 24hr hassle,and are at wits end
These people we owe money to,cannot understand that people have gone bust on ourselves,and we are also struggling to get money in owed to ourselves.
Any ideas

davec1960

If they want the money up front then they believe there will be insufficient money realised by closing the company, selling stock and assets and collecting debts due to the company.

What is your intention with the company

To close it and cease trading
To find a buyer for it
To put it through a pre-pack administration

If it's the 2nd or 3rd option you have a better chance of negotiating with them, particularly if you can introduce a buyer for option 2.

I had to close my company last year and the IP wanted £7500 on a PG to take the work on, but when i introduced a buyer he was willing to compromise (and probably made a damn site more that £7500)

Apologies if you already know this but one thing to be careful about if you are a director is the risk that you my be trading whilst insolvent .
The IP I dealt with advised me not to buy anything further on credit with any supplier once I had had a meeting with him as I could end up personally liable for the debt.

redmalc

Trish22,The information Davec1960 has given you is spot on.
How many employees do you have ? also what is the level of debt and how many creditors do you have,what area are you in,because the charge of £7500 may be on the high side.

oldoakey

Hi Trish

Sorry to hear of the struggle with your business but there is possibly another avenue you could take.

I have it from an accountant that your creditors can declare you bankrupt rather than do it yourself. If you owe one creditor a decent enough sum they can take you into bankruptcy which means you don't pay for it.

I would try and get some more advice though if possible.

toddle2u

I have it from an accountant that your creditors can declare you bankrupt rather than do it yourself. If you owe one creditor a decent enough sum they can take you into bankruptcy which means you don't pay for it.

Whilst the above is true it is unlikely because the creditor will soon realise that they are a 'can't pay' rather than 'won't pay' and they would just be throwing good money after bad. It would cost a creditor around £2.5K to issue and present a winding up petition to force the company into Liquidation.

From what the OP has said it seems that there are insufficient assets for the IP to realise to cover their fees. I do know IP's that will take jobs like this at 'risk' and give you terms of say 4 months to pay their fee. How much have you been quoted by the IP? If it's a simple case with few creditors and staff to deal with this sort of job shouldn't cost more than £3.5K

redmalc

If The op has debts to HMRC they might as well wait until they present a winding up petion,which will then push the company down the compulsory Liquidation procedure at no cost.

toddle2u

in he meantime we are having 24hr hassle,and are at wits end

If The op has debts to HMRC they might as well wait until they present a winding up petion,which will then push the company down the compulsory Liquidation procedure at no cost.

Could well be over 12 months before HMRC Petition which wont help the OP's current position