financial problems

[wales01man]

further to yesterdays thread from me can any one recommend the best way to close the business or carry on trading we are a ltd company and owe suppliers 35k and THE BANK 20k no prospect of any finance from bank or any source a easy way out is needed as the stress of it all is crippling

[Bathead]

PM me if you would like me to pass on your details to a guy I know who may be able to at least give some advice.

Mick

[MikePage]

You have a look at ww.debthelpuk.co.uk/cvl.html and the Insolvency Service publication insolvency.gov.uk/pdfs/guidanceleafletspdf/guidefordirectors.pdf.

You personal position will be affected by wether or not you have given any personal guarantees or security to the Bank.

If you have identified that the Company has no realistic prospect of survival you don't want to find yourself personally liable as Directors. So in your position I would contact thr Official Receivers Office (OR)ASAP; Private firms & Insolvency practitioners won't be involved if there is no prospect of fees from the Companies assets.

As long as you have done nothing wrong! dealing with the OR is cheap & relatively painless & as soon as the process commences your stress levels will drop hugely.

If you are nervous about dealing with the ORs Office you can try the CAB first - But my experience of the OR office is good & what you perceive as a one-off horror story is, for them, a daily occourance - so I don't think they will judge you too harshly.

Good Luck

Mike

[wales01man]

thanks mike best advice so far will look into this asap

[kimmrunner]

The answer is probably massively different depending on whether you are

(a) In overwhelming debt, and still losing money

(b) In overwhelming debt, but fundamentally profitable.

If (a) is the case you must cease trading immediately, since you are worsening the position for creditors and you do not want potential personal liability to kick in by trading insolvently - neither do you want to get barred as a director.

If (b) is the case, consider whether either a moratorium or reduction of the debtcould allow trading if protected from the creditors -

If (b) is the case consider what is needed to make a massive difference...would doubling sales, solve the problem or double it??? - so could the appearance of an expert in an any area in which you are weak solve the problem? I suspect the problem is not just money - and if you want the bank to trust you further you will need a "white knight" in shining armour to appear.


All of these will determine what you do.

[Kent Accountant]

Most Insovency Practitioners will give you free advice initially and they are the only individuals licensed to provide that advice. You can search for a local firm here (http://www.insolvency-practitioners.org.uk/ipsearch.aspx)

More information on what they do here (http://www.insolvency-practitioners.org.uk/page.aspx?pageID=121)

Hope you can work something out