As Director of my own limited company

SyncMaster_3

My personal situation as that in the new year I will have no income and am considering BR. My question is this:

History:
For the past year I have been working with through my own Limited Company, which I am the only director and shareholder. The company itself is not in any fianacial trouble, and it has no assests or debts. I just use that vehicle to get contract work and pay myself though it. A situation has occured where I can no longer get contract work, and so as of this Month will have no income. The only job I can find will bring in cira. 1/4 of what I was earning. So "personally" I need to go BR, because there is no way I can meet my commitments. If I go BR and explain this to the OR what action / view will they take about my limited company. I know soon as I am BR I will be banned from being a director etc. As the interest I hold in the company is not worth anything, should I just leave it dormant and let the OR advise me, or just resign as director, put my brother on as director who can then wind it up as per normal, thus I guess leaving me in a position where I can just tell the OR I have no work any longer? What should I do here.

Conor_3

Basically "Well, I'm going BR because I've not got any work this week" is not a sufficient reason to and you may find that you are refused bankruptcy.

You're looking for an easy cop out of getting to pay the money you owe and the OR will see it as this I expect.

Bankruptcy is for people who are in real financial difficulty - not for someone who is going to be out of work for a little time.

Richard_S

Conor wrote: »

Basically "Well, I'm going BR because I've not got any work this week" is not a sufficient reason to and you may find that you are refused bankruptcy.

You're looking for an easy cop out of getting to pay the money you owe and the OR will see it as this I expect.

Bankruptcy is for people who are in real financial difficulty - not for someone who is going to be out of work for a little time.

Conor,

You know that's not true; if the O.P has debts and has taken professional advice then the Judge will just stamp the petition.

An easy cop out for one person is the struggle of a lifetime for another; you're not in a position to judge and neither am I.

Richard

Richard_S

SyncMaster wrote: »

My personal situation as that in the new year I will have no income and am considering BR. My question is this:

History:
For the past year I have been working with through my own Limited Company, which I am the only director and shareholder. The company itself is not in any fianacial trouble, and it has no assests or debts. I just use that vehicle to get contract work and pay myself though it. A situation has occured where I can no longer get contract work, and so as of this Month will have no income. The only job I can find will bring in cira. 1/4 of what I was earning. So "personally" I need to go BR, because there is no way I can meet my commitments. If I go BR and explain this to the OR what action / view will they take about my limited company. I know soon as I am BR I will be banned from being a director etc. As the interest I hold in the company is not worth anything, should I just leave it dormant and let the OR advise me, or just resign as director, put my brother on as director who can then wind it up as per normal, thus I guess leaving me in a position where I can just tell the OR I have no work any longer? What should I do here.

Hi Sync,

If you want to keep the Ltd Co for convenience, i.e. reputation, bank accounts, stationery, then sign it over to your brother. If not then providing the Co. has no debts you can apply to have it struck off, which won't cost you anything like as much as liquidation.

If you leave it dormant, you still have to comply with the relevant Co House legislation.

Richard

wherediditallgo

I think it would be useful if this thread was read in conjunction with this recent one by the OP.

SyncMaster_3

Well, thanks for the replies.
Conor, I think that reply was a very presumptious as you dont know me or my exact position. Its not like what you think. I have got into a situation where my existing contract has been "terminated" and there is no possibility of me obtaining any work in this particular field again. I dont want to go into details here, but I was a little silly and know I will have to pay! I am trying to be prudent and forward thinking here, and very realistic. I have scanned the job market and it looks like (if I can get a job) that I will only make about 1/4 of what I had. this will leave me broke and unable to continue as I am, so BR is the only option.

Secondly, yes the raeson I asked about LTD company and "signing" it over (bear in mind it has no "debt or value" is that my brother can put it into liquidation at an easy cost, which I thought is simplest thing to do.

SyncMaster_3

I posted last before reading previous. I need acurate advice as I dont know what the correct situation is with regard the OR.

1. Recently my contract has ended. And I know I cant get any more work as I did before because I wont be able to obtain that line of work again.

2. During the past year, I have recieved monies that "as yet", i.e. they have not been declared yet as they are not due to be declared until my self assesment form is due apr 08, so what I am asking is how do I explain all this to the OR and what is my best position! I see it like this:

the LTD should fold up by as its the easist and cheapest means to do it, that would be my brother being Director and he can fold it up and account for whats due (which he is willing to pay the tax burden here to help me). I initially thouht I might eb able to get a way with this, but reading all the advice on this forum I have realised that I need to come clean.

So what I am try to ascertain here is how do I explain this and has anyone had similalr experiences. I have to face teh reality that I have done something silly and my line of work has gone down the tubes, leaving me in a difficult situation. Personally I have no income and only debts, and if my brother hadnt steped in my debt would be more as I understand HMRC debts are not included in BR?

tigerfeet2006

The first thing you really need to do is contact one of the charity debt help lines (see my sig.)

Another free help line to also speak to is the Business Debt Helpline

http://www.bdl.org.uk/

Hope that helps a little.

debt_doctor

Hi,
Not going to advise as ive just come back from the pub ! Well said Richard ( as usual !) Conor, ive been trying to give you the benefit of the doubt for some time now but ive decided you dont deserve that any longer.
Sync ill post Tue, in the meantime enjoy the excellent advice of most of the folks on here

seven2seven

Just a question , I had a Ltd Company , I always thought you needed 2 Directors (which we did). Could someone enlighten me here ?????????If this is the case then you cant have a company registered as Ltd at Companies House which therefore means it is not Limited and you will be liable for any debts it may incur.

Dont want to be the bearer of bad tidings , just trying to clear up a point. Personally I hope it all works out for you , my BR came about due to bottom falling out of the market I operated in and leaving me incomeless.

silvercar

I think you need to distinguish between the insolvency of your limited company and your personal bankruptcy. You and your company are legally two totally different entities. Which one is in difficulty, which one has liabilities it can't meet?