Resolved Question
Help on closing a limited company?
Hi
I am looking for a bit of help with regards to what I need to do about shutting down my limited company. I will explain my situation below:
I am a director of a construction company that I started with my business partner in July 2009. We were both directors of the company but when we hit a bad patch he lost his nerve and sold his share of the company to me for £1. I became the sole director of the company but things didn't get any better. To cut a long story short I am now left with a company that is in debt, has no real assets and no money at all in the company account. I owe just short of £5000 to suppliers that are on account and I have red letters arriving everyday so I cannot order any stock, I am tied down to a 5 year contract with my landlord with a 3 year breaker for the company office and this contract had a surety clause, but worse of all we were paid £7500 in advance for a contract that there is now no way we will be able to start yet alone complete as we have had to use the money for other debts. My staffs have just been paid but I have had no other option but to lay them all off as I just wont be able to pay them at the end of the month. As stated my bank balance is completely empty and I must stress that the banks have helped me in now way whatsoever so I have no overdraft or credit facilities. My personal credit rating in rubbish and I own no personal assets. I have had to use every penny I could get my hands on to pay wages and I cant even afford to pay the national insurance contributions I took from the staffs wages. We have no jobs booked in and no contracts waiting to start other than the one we cant afford to start.
I would just like to know what I need to do to close down the limited company and what is going to happen to me personally. Would it be advisable for me to declare myself bankrupt or is that going too far? I would appreciate honest advice ONLY please. Oh and one last thing, I already know that it serves me right for buying the company share for £1 and I don't need anyone telling me that!!
Thanks in advance…
I am looking for a bit of help with regards to what I need to do about shutting down my limited company. I will explain my situation below:
I am a director of a construction company that I started with my business partner in July 2009. We were both directors of the company but when we hit a bad patch he lost his nerve and sold his share of the company to me for £1. I became the sole director of the company but things didn't get any better. To cut a long story short I am now left with a company that is in debt, has no real assets and no money at all in the company account. I owe just short of £5000 to suppliers that are on account and I have red letters arriving everyday so I cannot order any stock, I am tied down to a 5 year contract with my landlord with a 3 year breaker for the company office and this contract had a surety clause, but worse of all we were paid £7500 in advance for a contract that there is now no way we will be able to start yet alone complete as we have had to use the money for other debts. My staffs have just been paid but I have had no other option but to lay them all off as I just wont be able to pay them at the end of the month. As stated my bank balance is completely empty and I must stress that the banks have helped me in now way whatsoever so I have no overdraft or credit facilities. My personal credit rating in rubbish and I own no personal assets. I have had to use every penny I could get my hands on to pay wages and I cant even afford to pay the national insurance contributions I took from the staffs wages. We have no jobs booked in and no contracts waiting to start other than the one we cant afford to start.
I would just like to know what I need to do to close down the limited company and what is going to happen to me personally. Would it be advisable for me to declare myself bankrupt or is that going too far? I would appreciate honest advice ONLY please. Oh and one last thing, I already know that it serves me right for buying the company share for £1 and I don't need anyone telling me that!!
Thanks in advance…
Additional Details
Sorry UK answers only please and I don't need to know how I can make millions through fake websites either thanks.
2 days ago
Best Answer - Chosen by Asker
You must be careful here. It is a criminal offense to continue to run a ltd company if you are aware that it is insolvent, which I think you are. You can apply to Companies House to wind the company up.
Instead of declaring yourself as a bankrupt, you can go for an IVA using an approved accountancy company - less trouble for you. Good luck.
Instead of declaring yourself as a bankrupt, you can go for an IVA using an approved accountancy company - less trouble for you. Good luck.
There are currently no comments for this question.
Other Answers (1)
- Hi
Declare yourself bankrupt.
Not an easy solution granted but whats more important , your health or wealth ?
start again and have a break !! take some time out for family and get a part time job!!
No comments:
Post a Comment