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Ulysses
Junior Member
United Kingdom
177 Posts |
 Posted - 18 August 2008 : 14:34:00
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Hi.
Sorry if this is long winded.
3 1/2 years ago was an employee of a small firm with 3 other employees. My then boss decided he was going to retire & put the business up for sale. I had worked for the company for 18 years . I had been his first employee & had over the years learned all aspects of the business. It was a thriving company at that time. I was in charge of the day to day running whilst in the latter 3 years, my employer used to come to work usually one day a week to oversee my decisions.
Worried about my future should the business sell, I discussed it with my wife & we decided to remortguage our home & get a Small Firms Business loan to buy it.
That was 3 1/2 years ago. The business lost a large customer within months of us buying it. The customer was an acquaintance of my ex boss & I found out later, had already decided to close before our purchase. Ie: my ex boss knew this was going to happen but omitted to inform us.!!.
Anyhoo.
The business moved along at a reasonable pace with making new customers & losing old. It never made a fortune , just enough to cover the bills & wages.
My wife & I have worked every day for 3 1/2 years without a holiday. Only taking a week off work at Christmas time. Last year (Jan 07) we had a big slump in work & we had to make redundant the staff that we employed. Leaving just myself & my wife to carry on. We have struggled for the last 20 months keeping the business afloat. Selling personal items to keep things going. This year we have lost a lot of customers due to them going out of business.. The phone calls for work have dried up. August is all ways the worst month of the year for work due to factory holidays.
We now find ourselves in the position that there is no money left in the business for wages. The money coming in just covers the overheads & Small Firms Business loan.
We still owe the bank around £18,000. We have a small loans guarantee insurance policy that the bank made us take out so I think they will be covered for any outstanding debt. I have paid all my suppliers & owe them nothing..
The business has assets of machinery, Delivery truck, fork truck, Tools & stock.
My question is. How do I wind the business down. It is a LTD Co & myself & my wife are the directors.
The money owed into the business may pay the overheads for a couple more weeks.
Both my wife & I are in an IVA for personal debts. We are waiting to be made bankrupt after the IVA has failed.
Quite frankly, we have had enough.
We are resigned to losing our home.
How do I file for a business bankruptcy.?
Many thanks in advance.
Mick.
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John
New Member
United Kingdom
73 Posts |
Posted - 18 August 2008 : 15:25:03
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Hi Ulysses
it sounds to me that you need to go for a Creditor Voluntary Liquidation (CVL).
A later Compulsory Liquidation could cause problems for you both as Directors.
Unfortunately you are unable to do a CVL on your own, you need the services of a Specialist.
www.Bankruptcyhelp.org.uk
0800 078 9367 |
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Ulysses
Junior Member
United Kingdom
177 Posts |
Posted - 18 August 2008 : 17:04:07
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Hi John.
Thanks for the prompt reply.
what would be the cost of a insolvency practitioner.? |
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John
New Member
United Kingdom
73 Posts |
Posted - 18 August 2008 : 17:18:28
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Hi
I'm not sure but I can refer to one and come back to you tomorrow.
www.Bankruptcyhelp.org.uk
0800 078 9367 |
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John
New Member
United Kingdom
73 Posts |
Posted - 18 August 2008 : 19:59:58
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Hi
I am informed that the fee would depend on the extent of the work involved but I have mentioned your assets and the other details within your post and you're looking at around £5K + vat.
www.Bankruptcyhelp.org.uk
0800 078 9367 |
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johns
Junior Member
United Kingdom
269 Posts |
Posted - 18 August 2008 : 20:29:06
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quote:
Originally posted by John
Hi
I am informed that the fee would depend on the extent of the work involved but I have mentioned your assets and the other details within your post and you're looking at around £5K + vat.
www.Bankruptcyhelp.org.uk
0800 078 9367
Hi just going through exactly what you may do,are you and your wife the only directors? is your bank loan secured as a charge on your property?
If you have staff they can claim redundancy once the company is wound up up to a maximum of £800 for their terms ie; if they are entitled to 4 months redundancy= £2,400 only after the creditors meeting, although they can claim benefit as soon as the stops trading, this is one of the benefits of ni.
Pick a friendly ip as the main creditor may not be and put you through the mill, all assets will go to the ip and this will pay their cost and any surplus to your creditors.
Remember being limited i what it means and speak to your business manager and pre book an appointment without telling them you intentions so it is registered and they favour that.
My company creditors meet is wed and i informed the bank after trading ceased and the want to come to an agreement on my loans which are secured.
Why try and survive just to pay the overheads get in first this has been my experience good luck you have been stitched up and hold your head up.
Regards
John |
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johns
Junior Member
United Kingdom
269 Posts |
Posted - 18 August 2008 : 20:40:34
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quote:
Originally posted by johnssorry remeber to have all your bookwork and minutes book up to date this is a legal requirement saves hassle afterwards
quote:
Originally posted by John
Hi
I am informed that the fee would depend on the extent of the work involved but I have mentioned your assets and the other details within your post and you're looking at around £5K + vat.
www.Bankruptcyhelp.org.uk
0800 078 9367
Hi just going through exactly what you may do,are you and your wife the only directors? is your bank loan secured as a charge on your property?
If you have staff they can claim redundancy once the company is wound up up to a maximum of £800 for their terms ie; if they are entitled to 4 months redundancy= £2,400 only after the creditors meeting, although they can claim benefit as soon as the stops trading, this is one of the benefits of ni.
Pick a friendly ip as the main creditor may not be and put you through the mill, all assets will go to the ip and this will pay their cost and any surplus to your creditors.
Remember being limited i what it means and speak to your business manager and pre book an appointment without telling them you intentions so it is registered and they favour that.
My company creditors meet is wed and i informed the bank after trading ceased and the want to come to an agreement on my loans which are secured.
Why try and survive just to pay the overheads get in first this has been my experience good luck you have been stitched up and hold your head up.
Regards
John
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Ulysses
Junior Member
United Kingdom
177 Posts |
Posted - 19 August 2008 : 07:44:16
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Hi John.
Thanks for that.
Hi Johns.
My wife & I are the only directors.
The bankloan was not secured on our property.
We have no employees.
Is my next step to contact a Insolvancy Practitioner or my Business manager.?
Many thanks.
Mick. |
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johns
Junior Member
United Kingdom
269 Posts |
Posted - 19 August 2008 : 08:17:27
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quote:
Originally posted by UlyssesIf the loan was not secured that is great news, if you have definently made up your mind to liquidate the company call someone in straight away the sooner you start the better and if you do not owe any creditors other than the bank the sale of assets will cover the ip and hopefully some to the bank.
I wrote to my bank and made an appointment to coincide with the ceasation of trading, i am not sure your insurance will cover you under the circumstances, personally you may have to wait for your own bankruptcy untill the company again stops trading as you will be dis-allowed as a director and will not be able to vote, from my experience it should not take the or long to get everything in place.
Hi John.
Thanks for that.
Hi Johns.
My wife & I are the only directors.
The bankloan was not secured on our property.
We have no employees.
Is my next step to contact a Insolvancy Practitioner or my Business manager.?
Many thanks.
Mick.
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johns
Junior Member
United Kingdom
269 Posts |
Posted - 19 August 2008 : 08:20:13
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quote:
Originally posted by johnsHi One more question is the company bank acct t/as or in the limited company name, the reason for this question is the ip will not inform the bank if it is t/as as i have found out.
Regaards
quote:
Originally posted by UlyssesIf the loan was not secured that is great news, if you have definently made up your mind to liquidate the company call someone in straight away the sooner you start the better and if you do not owe any creditors other than the bank the sale of assets will cover the ip and hopefully some to the bank.
I wrote to my bank and made an appointment to coincide with the ceasation of trading, i am not sure your insurance will cover you under the circumstances, personally you may have to wait for your own bankruptcy untill the company again stops trading as you will be dis-allowed as a director and will not be able to vote, from my experience it should not take the or long to get everything in place.
Hi John.
Thanks for that.
Hi Johns.
My wife & I are the only directors.
The bankloan was not secured on our property.
We have no employees.
Is my next step to contact a Insolvancy Practitioner or my Business manager.?
Many thanks.
Mick.
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Ulysses
Junior Member
United Kingdom
177 Posts |
Posted - 19 August 2008 : 10:37:58
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Originally posted by johnsHi One more question is the company bank acct t/as or in the limited company name, the reason for this question is the ip will not inform the bank if it is t/as as i have found out.
Hi Johns.
The bank account is in the Ltd Co Name.
Mick. |
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Topic |
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Business Bankruptcy
