BR, Ltd Co, Cash in Company - options?

jamesbear

I'm almost a year into an interlocking IVA with my wife and we pay around £2,500 between us each month. We jointly own a Ltd co (I am the director). We've just lost our largest client.

We can only continue to pay ourselves the amount needed to service the IVA for about 3 more months and then there wouldn't be anything available to pay into our IVA's. Then it will fail. Holidays & breaks were removed from the IVA (HMRC was the creditor).

And so, I'm considering personal bankruptcy for us both. There is around 30k available to draw from the business at this point.

Can we appoint a new director until we are discharged and effectively freeze activity in the company, whilst paying ourselves that 30k over the course of the year in order to survive?

Reason I'm asking is to see if this is possible - or instead, would it be the case that we would be forced to wind up the ltd co, release the 30k and hand it over?

I reached this point whilst wondering about switching to being a Sole Trader until discharged - then worried we'd lose that 30k and end up with zero income.

Finally, I was hoping we'd be allowed to keep our house for a year, is that "normal" or does it go fairly swiftly?

Sorry if this doesn't make much sense, I am in a right state with worry.

New_and_Improved_Me

how much do you actually owe the HMRC?


I assume its for Back Tax that you have not paid.

jamesbear

I won't go into the specific values too much - the primary concern is being able to pay the IVA, which we can only do for about 3 to 4 more months. Suffice to say we owe more than what's in the bank by a margin, but that it was from a long time ago and all agreed as non-deliberate. They (HMRC) were fairly understanding whilst setting up the IVA - but at the same time wouldn't give us more than a year to repay (we asked for 2).

silvercar

They (HMRC) were fairly understanding whilst setting up the IVA - but at the same time wouldn't give us more than a year to repay (we asked for 2).

Worth going back to hmrc and asking for longer?

Mouse007

The problem with bankruptcy will be the shares in the company (an asset) will become the property of the OR and you will have to resign as directors.


Cash will be gone.

maxmycardagain

bit confused...

is the HMRC tax bill for the Ltd company or personally?

maxmycardagain

when a ltd company owed me £13,000 and went bust the directors resigned 4 days earlier and walked away with impunity in fact they were the main creditors listed by the ISP after HMRC...