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View Full Version : Dealing with Insolvency Practitioners / Will we Lose our Home???


Worried Wife
11th September 2010, 09:54
My Husbands company stopped trading around October time 2009 after a major server crash and a very bad run of luck. The company had been trading since 2003 and was very much a lifestyle business employing just a couple of staff. The business offered computer support to sme's.

As soon as we knew the company was unable to successfully trade we went to visit an insolvency practitioner but the cost of their service was just to high. It was at that time I came across this forum and it has offered us a lot of good advice which we have followed.

The business did not have any debts to suppliers, the only debts where to the bank (£20k) with a personal guarantee, we are trying to arranged payment terms with the bank at the moment and they are asking for us to put a charge on the house, and the HM Revenue for an amount they changed on a monthly basis. The HM wound the business up and for the last couple of months we have been dealing with the insolvency service.

The main problems are this;

1. We do not have a backup of our data, in our industry this is a pretty bad show, I know. The insolvency practice are considering disqualifying my husband because of this. This will have a major effect on us as we do have another business which is managing just to keep our head above water operating out of our garage.

2. We have been informed that we have a directors loan to the sum of £52,000.00 which has accumulated over a couple of years. I'm not quite sure what has gone on here as our abbreviated accounts are showing we have paid ourselves next to nothing but then taken a massive loan.

We are absolutely worried sick. We have three small children and a £200k home with equity of around £20k. We are not sure where we stand as to losing our home. I should add that the house is in both of our names and I am not a director of the business. If anyone can offer any advice it would be great.

A very worried lady.

wizzard
11th September 2010, 10:59
Speak to a debt counselling charity, the main one off the top of my head is CCCS:

www.cccs.co.uk

johndon68
11th September 2010, 11:01
This appears to be a duplicate of this thread: http://www.ukbusinessforums.co.uk/forums/showthread.php?t=172134 (http://www.ukbusinessforums.co.uk/forums/forumdisplay.php?f=47)

John

Tom McClelland
11th September 2010, 11:02
I think you need an accountant to look at this. The timing and circumstances of the £50,000 that the company has lent you needs to be examined in more detail, I suspect, to determine the best way forward. What paperwork was raised, was there any reasoning behind the loan? Who was preparing the company accounts during the years while this was going on, and what did they advise you? A director cannot normally just borrow a significant sum from a company that they control without consequences, and your accountant at the time should have known that and explained to you how the payments to you should be treated correctly.

But I suspect your house is safe, no-one will gain anything in particular by turfing you out of it because your equity in it is too small to make any difference, by the time costs associated with selling it etc are taken into account.

CDAPartnership
11th September 2010, 11:03
I agree you need to speak to an inslovency specialist.

Whether that is a charity or not is your choice, take a look at the website in my link it is very informative.

Tom McClelland
11th September 2010, 11:03
This appears to be a duplicate of this thread: http://www.ukbusinessforums.co.uk/forums/showthread.php?t=172134 (http://www.ukbusinessforums.co.uk/forums/forumdisplay.php?f=47)

John

It was suggested to the OP that they repost in "Accounts and Finance".