Husband closing the company

mumsonline_2

Unfortunatley due to difficult times and hiked up bank charges my husband is having to close their family business down. Even now the bank is tying to get their more than pound of flesh. They had employed their own independent company to assist with the closing of business but the bank is insisting they use a company they recommend instead , only the banks comany is going to charge 30k for their services and the one my husband had originally chosen were charging 10k. Can the bank insist theyuse the company they want them too?

anamenottaken

mumsonline wrote: »

Unfortunatley due to difficult times and hiked up bank charges my husband is having to close their family business down. Even now the bank is tying to get their more than pound of flesh. They had employed their own independent company to assist with the closing of business but the bank is insisting they use a company they recommend instead , only the banks comany is going to charge 30k for their services and the one my husband had originally chosen were charging 10k. Can the bank insist theyuse the company they want them too?

Is the company not able to pay the bank what it owes?

mumsonline_2

Yes when the sale of the building goes through but that may or be until the new year, so at this time unfortunately no!

Ewarwoowar2

I think it depends on the type insolvency that the company will be put into e.g liquidation, creditors voluntary administration, etc... I would insist on the cheaper company and see if the bank has any legal right to insist on a company from its panel.

If it did insist, I would also want the bank's company to agree to do the job for £10k. In my experience, insolvency practitioners will charge what they think they can get away with.

pelirocco

Is it a ltd company? , will there be money left over after all the bills have been paid?
And have you signed personal guarentees for anything