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Sparky
Starting Member
United Kingdom
3 Posts |
 Posted - 02 June 2013 : 11:50:29
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I was the sole shareholder of a Ltd. Co. That went into liquidation in Aug 2013
When initially transferring the company into Ltd. Co. I paid in the money from the original sole trader account, which became a directors loan
I was advised by my accountant to repay myself £1000 per month, topped up by £500 p/m salary in order to remain within the taxable allowance.
After recruiting a new accountant I was told that after the personal allowance increased my original accountant should have adjusted this figure accordingly, which they didnt & submitted the accounts in the same way, meaning that my repayment of directors loan went overdrawn & when the company went into liquidation I personally owed the company £1,700 of overpayment.
I've been approached by the Insolvency Practitioners to repay this amount immediately, with a mention of "wishing to avoid the additional costs of bankruptcy".
My situation is that after the company closed I sold up, rented out my house & bought a plane ticket for around the world, planning to return in a year or two. I am now in Asia living off the small surplus from the rent of my home.
I wrote to the Insolvency Practitioner explaining my position & detailing my finances, and they asked me to propose how I am going to pay them the money.
I want to respond to them asap but wanted to have some knowledge before I did so.
My questions
1. Can they issue bankruptcy proceedings against me if I am not in the country?
2- Is there any way to argue that the debt should be scrapped as it was due to poor info from my accountant & if the figures were submitted differently I wouldn't owe anything.
3- If I have to negotiate a compromise, what is considered acceptable? I.e. is it generally accepted to reduce the total plus accept a small payment each month (£5) until I gain employment when back in the UK & can pay of the balance.
Ideally if I have to pay it back then this is what I'd like to do. |
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Richard P
Senior Member
United Kingdom
1701 Posts |
Posted - 02 June 2013 : 20:29:52
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hi
1) Yes
2)You would have to claim off the accountant insurance that is for you to sort and NOT the OR they would still come to you for the money
3) They are open to negotiation but would normally like resolved ASAP but within current financial year.
Good Luck Richard,
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Sparky
Starting Member
United Kingdom
3 Posts |
Posted - 04 June 2013 : 04:52:41
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Many thanks for the reply Richard,
I'll give it a go and see what happens.
One other quick question.
If the Insolvency Practitioner does file for bankruptcy against me do they bear the cost of this, and if so how much is it?
Just wondering in case I can request that they deduct this amount from the total instead of paying the costs (although if its me who has to pay this won't have any weight to it!)
Many thanks again Richard, your help is really appreciated.
Steve
quote:
Originally posted by Richard P
hi
1) Yes
2)You would have to claim off the accountant insurance that is for you to sort and NOT the OR they would still come to you for the money
3) They are open to negotiation but would normally like resolved ASAP but within current financial year.
Good Luck Richard,
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Richard P
Senior Member
United Kingdom
1701 Posts |
Posted - 04 June 2013 : 22:45:51
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yes they cover the costs, worth a try but they probably wont give you much ground.
do you have other personal debts or creditors who will start shouting soon
Good Luck Richard,
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Richard P
Senior Member
United Kingdom
1701 Posts |
Posted - 04 June 2013 : 22:49:59
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if 1700 is your only debts then it would be best to find a compromise.
They would add their cost to the overall debt which will include prep time, so likely to be a lot more than the normal court fees
going BR can be the right option for some but it is not anoption that should be taken lightly
Good Luck Richard,
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Sparky
Starting Member
United Kingdom
3 Posts |
Posted - 05 June 2013 : 01:47:38
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Many thanks again Richard,
I've emailed them asking for an informal agreement in then form of a reduced debt with gradual repayments until I gain employment again.
Crossing my fingers for now but will let you know how it goes.
Many thanks for your support again,
Steve
quote:
Originally posted by Richard P
if 1700 is your only debts then it would be best to find a compromise.
They would add their cost to the overall debt which will include prep time, so likely to be a lot more than the normal court fees
going BR can be the right option for some but it is not anoption that should be taken lightly
Good Luck Richard,
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Topic |
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I was the sole shareholder of a Ltd. Co. that went into liquidation.
