Need a way to close my company, does not trade but owes Barclays, no funds available.

Greguk123

Long story involving serious poor health (total kidney failure), COVID and loss of premises,  I'm still the director of a former garage.  Not traded for 2 years, no appreciable assets as we were providers of a service not a product.  We owe Barclays for a Bounce back loan, they sent it to debt collection who agreed no assets and sent it back to Barclays.  Barclays now  don't even answer letters.

I don't have any money available so cant pay a liquidator, the DS01 says I have to make a statement the company has no debts and I can't afford the £2400 to apply to court to be struck off.

Surely i cant be expected to pay for accounts every year and sit as director of this defunct company forever??

Any advice appreciated, Greg

Jeremy535897

At some stage, you will have to get rid of the company, and that can't be done for free. See:
https://www.companydebt.com/can-i-close-my-business-if-i-have-a-bounce-back-loan/

Grumpy_chap

Someone asked a very similar question in relation to a Lloyds BBLS a few days back:
https://forums.moneysavingexpert.com/discussion/6421375/lloyds-bounce-back-loan#latest

It does seem as though the banks pursue full debt recovery routes before they can implement the underwriter of last resort (Government Guarantor).

DullGreyGuy

Greguk123 said:

Surely i cant be expected to pay for accounts every year and sit as director of this defunct company forever??

You can do the accounts yourself, you can also have a conversation with a licensed insolvency practitioner, many do a free 30 minutes. 

At some point Barclays may push it into a involuntary insolvency

Greguk123

Jeremy535897 said:

At some stage, you will have to get rid of the company, and that can't be done for free. See:
https://www.companydebt.com/can-i-close-my-business-if-i-have-a-bounce-back-loan/

Hi, yes I wish I had the funds then I would just do it.  Sadly on disability my options are rather limited

Greguk123

Grumpy_chap said:

Someone asked a very similar question in relation to a Lloyds BBLS a few days back:
https://forums.moneysavingexpert.com/discussion/6421375/lloyds-bounce-back-loan#latest

It does seem as though the banks pursue full debt recovery routes before they can implement the underwriter of last resort (Government Guarantor).

Yes I didnt take a salary or drawings etc and the debt collectors have been and gone, no assets so they handed the case back to barclays.  Debt reovery stage over, now stuck in limbo land.  Barclays seem to have just filed it now.

Greguk123

DullGreyGuy said:

Greguk123 said:

Surely i cant be expected to pay for accounts every year and sit as director of this defunct company forever??

You can do the accounts yourself, you can also have a conversation with a licensed insolvency practitioner, many do a free 30 minutes. 

At some point Barclays may push it into a involuntary insolvency

I have spoken to probably a dozen but I don't have the funds for an IP.  I have written to Barclays asking them to put it in involuntary but no joy, I cant get them to reply to a letter even now,, head office, complaints the lot.  Been dead since the debt recovery company handed them the file back.

Problem is I'm stuck as director and having to file papers etc unable to move on with my life

DullGreyGuy

Greguk123 said:

DullGreyGuy said:

Greguk123 said:

Surely i cant be expected to pay for accounts every year and sit as director of this defunct company forever??

You can do the accounts yourself, you can also have a conversation with a licensed insolvency practitioner, many do a free 30 minutes. 

At some point Barclays may push it into a involuntary insolvency

I have spoken to probably a dozen but I don't have the funds for an IP.  I have written to Barclays asking them to put it in involuntary but no joy, I cant get them to reply to a letter even now,, head office, complaints the lot.  Been dead since the debt recovery company handed them the file back.

Problem is I'm stuck as director and having to file papers etc unable to move on with my life

Presumably the business is small enough to come into the scope of the Financial Ombudsman in which case you could log a formal complaint about the lack of their response (I dont think you can complain that they wont trigger an insolvency)

tightauldgit

Greguk123 said:

DullGreyGuy said:

Greguk123 said:

Surely i cant be expected to pay for accounts every year and sit as director of this defunct company forever??

You can do the accounts yourself, you can also have a conversation with a licensed insolvency practitioner, many do a free 30 minutes. 

At some point Barclays may push it into a involuntary insolvency

I have spoken to probably a dozen but I don't have the funds for an IP.  I have written to Barclays asking them to put it in involuntary but no joy, I cant get them to reply to a letter even now,, head office, complaints the lot.  Been dead since the debt recovery company handed them the file back.

Problem is I'm stuck as director and having to file papers etc unable to move on with my life

If you've spoken to a dozen IPs what have they advised you? I doubt you'll get better advice on an internet forum.

I imagine Barclays will not close the debt out until they've pursued all their options and presumably got HMG to pay out on it. At that point you can wind up your company. 

Greguk123

tightauldgit said:

If you've spoken to a dozen IPs what have they advised you? I doubt you'll get better advice on an internet forum.

I imagine Barclays will not close the debt out until they've pursued all their options and presumably got HMG to pay out on it. At that point you can wind up your company. 

You are right I have spoken to many IPs.  They say pay us £4000 and we can wind it up.  I don't have £4k I have organ failure and disabled from working now.

Barclays have already perused all the options including debt collection and exhausted those channels.    I am told they cannot claim the government guarantee till the company is dissolved, but they wont correspond to me further or apply to the court to wind up my company, they have just gone silent.  So here I sit...

tripled

Are you sure you cannot submit a DS01? The paper DS01 says nothing about debt, it references sections 1004 and 1005 of the companies act, and the need to comply with 1006 and 1007. The guidance here: https://www.gov.uk/closing-a-limited-company indicates DS01 is an option even when a company has debts (see under "The company cannot pay its bills").

The linked guidance suggests that, provided the company hasn't traded, and isn't in a CVA or subject to insolvency proceedings, then you can apply for the company to be struck off. If Barclays are just sitting on it, then it suggest these do not apply?

It's fairly straight-forward to look up the companies act 2006, I suggest you browse sections 1004-1007 it if you haven't already.

As a creditor, you need to send Barclays a copy of the strike-off paperwork. They might start insolvency proceedings (if so you would need to stop the strike-off application), or just let it go through.