We’d like to remind Forumites to please avoid political debate on the Forum.
This is to keep it a safe and useful space for MoneySaving discussions. Threads that are – or become – political in nature may be removed in line with the Forum’s rules. Thank you for your understanding.
📨 Have you signed up to the Forum's new Email Digest yet? Get a selection of trending threads sent straight to your inbox daily, weekly or monthly!
The Forum now has a brand new text editor, adding a bunch of handy features to use when creating posts. Read more in our how-to guide
Worried about business bankruptcy
kimi1977
Posts: 107 Forumite
To explain the situation (will be generic avoiding names)
I am the director of a company that was sold in 2008 to another party but stayed on as Director. Due to the slow down in our clothing sector, I have been trying to sell it for the owner but not been able to obtain a substantial enough offer to meet the debts of the business.
The domain is worth around £10,000 , our amazon store and stock remaining around £4500 . A buyer has offered £7000 for everything but the owner has declined, the amount owed in overdraft, accountant fees is around £9000 total, so the offer is £2000 short to clear everything off with the bank.
The potential buyer is withdrawing end of this month, so I really want to sort this without the bank coming after me as the director/name on bank account.
It is a limited company and I do have a personal guarantee against the overdraft - so this is concerning me , the owner did sign a guarantee against my guarantee when buying the business , but now says it is down to me to sort out the sale to meet the debts of the business, which is hard on me as I affectively do not own it or get anything from the sale. I have spoken to the accountant and they said to do what you can before closing completely.
Where do I stand and what should I do
I am the director of a company that was sold in 2008 to another party but stayed on as Director. Due to the slow down in our clothing sector, I have been trying to sell it for the owner but not been able to obtain a substantial enough offer to meet the debts of the business.
The domain is worth around £10,000 , our amazon store and stock remaining around £4500 . A buyer has offered £7000 for everything but the owner has declined, the amount owed in overdraft, accountant fees is around £9000 total, so the offer is £2000 short to clear everything off with the bank.
The potential buyer is withdrawing end of this month, so I really want to sort this without the bank coming after me as the director/name on bank account.
It is a limited company and I do have a personal guarantee against the overdraft - so this is concerning me , the owner did sign a guarantee against my guarantee when buying the business , but now says it is down to me to sort out the sale to meet the debts of the business, which is hard on me as I affectively do not own it or get anything from the sale. I have spoken to the accountant and they said to do what you can before closing completely.
Where do I stand and what should I do
0
Comments
-
Hi kimi
I would strongly recommend that you speak with my colleagues at Business Debtline www.bdl.org.uk for their view on where you stand in terms of liability and severing your ties with the company.
Dennis
@natdebtlineWe work as money advisers for National Debtline and have specific permission from MSE to post to try to help those in debt. Read more information on National Debtline in MSE's Debt Problems: What to do and where to get help guide. If you find you're struggling with debt and need further help try our online advice tool My Money Steps0
This discussion has been closed.
Confirm your email address to Create Threads and Reply
Categories
- All Categories
- 354.4K Banking & Borrowing
- 254.4K Reduce Debt & Boost Income
- 455.4K Spending & Discounts
- 247.3K Work, Benefits & Business
- 604.1K Mortgages, Homes & Bills
- 178.4K Life & Family
- 261.6K Travel & Transport
- 1.5M Hobbies & Leisure
- 16K Discuss & Feedback
- 37.7K Read-Only Boards