Limited Company Bankcruptcy

Tnx

Hi,

I have a big dilemma and hoping the good natured people here might give me some direction . I own a Ltd Company, that currently is involved with a court case. My concern is the company has not being doing great, and the last contract I had has just been pulled out. I am thinking of putting it in administration, but I have been told that this will be seen as bad and the court case might follow me as a sole director. Either way I cannot see how the company is going to escape bankruptcy as it has debts of £10,000 and this might sky rocket if judgement is made against the company. My query is, is it possible to be pursued as sole director? Is it also wise to wait for the court hearing which is very soon before applying for Bankcruptcy? Really appreciate your wise advise, as I am so stressed out.. Many thanks

longtermplanner

I suggest that you call Business Debtline: http://www.bdl.org.uk/ You may get some interesting anecdotes here, but it will be really hard to tell how far they read across to your situation.

Prothet_of_Doom

Unless you signed PERSONAL guarantees, a limited liability company is just that. They can't chase the shareholders for it's bills, unless they acted in an unlawful manner.

National_Debtline

Hi Tnx

Official guidance from the Insolvency Service on circumstances where company directors may be pursued for the debts of a limited company in liquidation:

http://www.insolvencydirect.bis.gov.uk/technicalmanual/Ch25-36/Chapter31/part4B/part4/part_4.htm

It's rather dry reading but an excellent point of reference.

Regards

Dennis
@natdebtline

Tnx

Thanks guys for the info, great relief after speaking to debt line who seemed to think I should be alright as I have run the company clean & always paid all my dues to HMRC & creditors... Dependant on the case - I may survive ...

Again many thanks.

National_Debtline

Tnx wrote: »

Thanks guys for the info, great relief after speaking to debt line who seemed to think I should be alright as I have run the company clean & always paid all my dues to HMRC & creditors... Dependant on the case - I may survive ...

Again many thanks.

Glad you're feeling more opitmistic. It takes a lot to 'pierce the corporate veil', so to speak.

Very best wishes,

David @ NDL.

Tnx

Thanks David, know what you mean...staying positive for now and coming to terms with the fact that I may have to give up my "baby" either way this has been a big lesson and a lot learnt.