Bankruptcy then liquidation?

moneytroubles80

Hi there all:

Really hoping for some advice. I have personal debts, as well as debts in my two limited companies. I went to see an insolvency practitioner who advised me to put the companies into liquidation. This however would cost me over £5k, which I just dont have. What happens to my limited companies (of which I am sole director) if I file for bankruptcy first? The insolvency practitioner advised me that it would be a lot more difficult for me to do that, as the official receiver would be a lot harder on me than he would be as a liquidator, but he didnt give any advice on the actual process. Could anyone advise? And is it true that the official receiver would be a lot harder on me?

Also, I am really concerned that the bankruptcy procedure would involve my partner, even though we have no joint assets? We do have a joint bank account, but this has hardly been used. He did lend me a large sum of money over a year ago, which I have been paying back over the year, but I am worried that the OR may see this as some kind of connection?

Thanks in advance

lilybankrupt

I would give Business Debtline a call, they are geared towards people with businesses - ltd or sole trader - facing bankruptcy and I've found them to be excellent.

tigerfeet2006

I concur with Lily. They are free and will provide you with impartial advice and are clued up on all the in and outs of BR and all it entails.

https://www.businessdebtline.org/

National_Debtline

Hi moneytroubles and welcome to the forum.


Firstly, I echo the advice to contact our colleagues at Business Debtline. They can deal with both the business and personal elements of your situation.

moneytroubles80 wrote: »

Hi there all:

Also, I am really concerned that the bankruptcy procedure would involve my partner, even though we have no joint assets? We do have a joint bank account, but this has hardly been used. He did lend me a large sum of money over a year ago, which I have been paying back over the year, but I am worried that the OR may see this as some kind of connection?

Thanks in advance

Re: the above - just a note of caution. Your partner would be treated as a creditor like any other in your bankruptcy. If you have been paying him back at a quicker rate than other creditors over the past year, this may be seen as a "preference" and the Official Receiver may want to quiz you further about this.


Dennis
@natdebtline

Goldrill

Hello,


Re the limited companies: I liquidated mine myself. I went to an insolvency practitioner and they were after a similar amount of money, which I didn't have. It is quite possible; have a look on the .gov website for "Liquidation: how to wind up your own company". I made a lot of use of the Insolvency Service helpline, who talked me through every step.


Important thing though; you MUST delay bankruptcy until after you've liquidated - because that way you are still a Director when it winds up and can deal with it. If you're bankrupt you can't.

Goldrill

... and also just to add: I had the interview with the OR who were LOVELY. I think they appreciate the fact you've tried to do the right thing by liquidating yourself and being honest with them: they get a lot more arsey if you're shoved into it and then deliberately lose records etc etc.