Company liquidation - urgent help needed

helen2192

Hello,
This is my first post on here so apologies if it's in the wrong section.
I am at a really difficult cross roads and need some urgent advice.


In a nutshell:
I'm the sole director of a LTD co, which I am the only employee of. I have approx. £20k worth of debt with an invoice factoring company which at the moment, we're in a stale mate situation as they know there is no assets to the business. I also have a £10k loan and £4k debt - total about £35k business debts (£30k of which are personally guaranteed by me)
I rent a house and have no assets, plus about £10k personal debts.
Business can make money and it does generate income however because of the debt with invoice factor - they won't release funds which has screwed both my business and personal circumstances.
Spoke to 2x IP's who both advised going liquidating company and then setting up an agreement or IVA with my creditors including the business debts I am personally liable for which is a course I am willing to take.
Due to illness, I am unable to hold down a full time job so need the ability to be self employed and I have a good client base.
Have been advised re: phoenix company and/or liquidating and operating through another LTD co I already have (which has no debts)
The problem is, I can't afford the £5k fee's the IP's are asking and need some advise on how to do it myself - most importantly legally but also professionally and as simply as possible.
This is a really difficult time so I very much appreciate any input/advise anyone can give me.


Thank you
Helen

Annisele

Have you tried calling Business Debtline? I've never used them myself, but I've heard good things about them. They're a charity and they won't charge you, so they're probably worth a call.

simpywimpy

I believe you can hang fire and wait for them to take you to court or into bancruptcy then you dont have the fee to do it yourself

patman99

I assume you are using an invoice factoring company in order invoice your customers and collect the payments before passing the money minus their fees to you.

Is there any way you could invoice your customers directly & receive payments for goods & services directly to you ?.

By doing this, you would get an income and would also stand a fighting chance of actually being able to clear your £4k debt & £10k loan whilst not increasing the £20k you owe the invoice factors.

paddyrg

As above but slightly wary that you seem to be trading whilst insolvent if you do go to clients direct, which has implications.

Keeping_Positive

Going direct to customers will probably break a term in the agreement with the Factoring company. If there is 20k due to them you should have invoices for that amount at the very least. They shouldn't need to come to you unless the invouces raised arent being paid fir some reason.

patman99

If there is a clause, then she does have the 2nd business ready to run. So she could use that to quote and bill the customers.

Business_Debtline

Hello Helen,

My name is Regina and I am an adviser for Business Debtline.
I did post this on the other page you wrote on.

Some of your options – such as closing the company down and negotiating informally with creditors – could possibly be achieved without the intervention of insolvency practitioners (IPs ). You may be able to make an application to Companies House to strike your company off. There are criteria you would need to meet before this process is applicable to you and I would need more information before I can advise in detail.
Please call our helpline on 0800 197 6026 and speak to one of our advisers. We can talk you through closing your company down and making the application to Companies House. We also give advice on personal debts so can discuss whether an IVA is a suitable option for you (alongside any other options). All advice is free, impartialand confidential. Our lines are open from 9:00-17:30 (Monday – Friday).


I hope this helps.

Regina