Bankrupt & Limited Company

MOONSHINE_2

Due to foolishness during a marriage breakdown of my parents when i was 18-19 i accumulated numerous debts and when i was signed of sick for several months couldn't pay them with the SSP, i had PPI on some but the forms where ridiculous for a Dyslexic and they wouldn't assist with the filling out of so i borrowed more money to pay the minimums Until i got back to work,but this didn't work and i got deeper and deeper into uncontrollable debt (about 22k a stupid amount to give me when i was so young.then anyway i moved in 2004 early 2005 and the people stopped chasing me but on the 1st of November i got a letter from a debit collection agency saying i owe them a lot of money 9K which is obviously one of these debts with stupid charges etc on them, now i'd only really started to get better and look to the future.

Now i cant pay this sort of money they are not reasonable people i remember from the first time, so am considering going bankrupt.

BUT
I have a limited company that i have been working through the last year i am sole director and shareholder it pays me a small salary (VERY Small) its got a massive loss but will make money i have gone to a lot of trouble setting it up stationary getting things printed etc and don't really want to lose it because of this but can't keep it now because its not making a profit its useless and worthless to anyone but me can i pass the shares to someone i trust and let them run the company and continue to employee me? saving all the trouble of starting up again, it has all the advertising in the yellow pages and the internet etc

The company on its own has no worth what so ever pennies the total company value on share issue is about a tenner, has very little stock and has not turned a profit this year yet or the last year.

It has no real worth other that to me

I would really appreciate advice as i don't want me or the friend i pass to get into trouble or know if its legal, its not like its worth 100s let alone thousands

All advice is appricated

Richard_S

Hi Moonshine,

There's nothing to stop you selling the Ltd Co. to a trusted friend and working as an employee of the Company, but you could always resign as Director and Secrtetary and let a friend take those roles over until you're discharged.

Regards

Richard

MOONSHINE_2

Richard,

Thanks for a speedy reply what about the fact i own the shares in the company wouldn't an OR take these from me especially if just before i discharge the company makes money or any of the 1000's of other situations there are. I'd love to let someone run the company and be able to keep the share allotments but have them run the company and employee me is this possible/legal/likely?

Regards

Richard_S

MOONSHINE wrote: »

Richard,

Thanks for a speedy reply what about the fact i own the shares in the company wouldn't an OR take these from me especially if just before i discharge the company makes money or any of the 1000's of other situations there are. I'd love to let someone run the company and be able to keep the share allotments but have them run the company and employee me is this possible/legal/likely?

Regards

Hi Moonshine,

Unless the O.R can sell the shares they're not going to have any interest in them, and from what you say about the value of the company they're worthless anyway. You could just sell the shares in the company for a nominal sum, and that would distance you completely from the Company, in terms of ownership and being an officer of the company.

An un-discharged bankrupt is not supposed to have any influence over a Ltd Co. so you'd need have a think about how you could demonstrate that in the unlikely event that you were asked to.

Richard

fermi

You should really take some professional advice on the personal/business position.
[SIZE=-1]
National Debtline - Tel: 0808 808 4000 are excellent with regards to the personal side, while their sister advice agency Business Debtline - Tel: [/SIZE][SIZE=-1]0800 197 6026[/SIZE] are great on the rest.

For general questions on insolvency you can also contact the official government Insolvency Service helpline.

http://www.insolvency.gov.uk/contactus/enquiryline.htm

Going into BR with some certainty as to the future consequences and options is essential.

Richard_S

Moonshine just has fermi; "moi".:rotfl: :rotfl: :rotfl:

Richard_S

fermi wrote: »

You should really take some professional advice on the personal/business position.

[SIZE=-1]National Debtline - Tel: 0808 808 4000 are excellent with regards to the personal side, while their sister advice agency Business Debtline - Tel: [/SIZE][SIZE=-1]0800 197 6026[/SIZE] are great on the rest.

For general questions on insolvency you can also contact the official government Insolvency Service helpline.

http://www.insolvency.gov.uk/contactus/enquiryline.htm

Going into BR with some certainty as to the future consequences and options is essential.

Joking apart, Business Debt Line weren't able to help us with a Ltd Co query. We were both Directors of our Ltd Co when we were declared bankrupt, so we couldn't submit Annual returns, liquidate the Company or resign our Directorships.

Lots of very tedious reading and several phone calls with Companies House eventually resolved the problem,

They're great for straight forward advice but quite soon technically challenged.:rolleyes: :rolleyes:

Richard

fermi

Richard_S wrote: »

They're great for straight forward advice but quite soon technically challenged.:rolleyes: :rolleyes:

Handy to know.

Since the quality (and depth) of advice you get on a given day can be "pot luck" with any particular organisation, I thought it best to include a final link to the IS.

As you say, time and effort invested to make sure that you will come out the other side still in fighting form is well worth it.

MOONSHINE_2

Richard_S wrote: »

Hi Moonshine,

A discharged bankrupt is not supposed to have any influence over a Ltd Co. so you'd need have a think about how you could demonstrate that in the unlikely event that you were asked to.

Richard

Do you mean un-discharged - could i legally buy the shares back after by BR has been discharged!

Richard_S

MOONSHINE wrote: »

Do you mean un-discharged - could i legally buy the shares back after by BR has been discharged!

Sorry Moonshine, yes un-discharged.:eek: