Am i doing it right?

[Chris Marin]

hi all,

after a sense check really.

So my business went under in late May, due to lack of cash flow. I spoke to a friendly IP who advised that the stock would not sell easily and it would be better for me to sell it myself and pay the fulfilment centre debt (because they wouldnt release any goods with debt outstanding) and any additional funds would go toward paying for an IP.

The stock sold just enough to cover the fulfilment centre debts and has now completed. Theres nothing left in the kitty for an IP so been following spongebobs plan.

I've now emailed all creditors (around £45k) to advise of the situation, and will follow this up in writing. I have no personal guarantees and am am owed to my self as a director.

Does this all sound correct? Is there anything stopping me from setting up a new business as self employed during this period?

 

[Chris Marin]

Just to follow this up - im thinking of submitting a DS01 form alongside the written letter to creditors?

 

[Mr D]

Following the spongebob plan sounds OK. You can set up a new business as limited, or self employed or whatever you want.

Your creditors may well refer the debt to debt collection or keep writing / calling you.
"The business has ceased trading and has no assets" is what you respond to them with.

Possible a creditor will spend money to wind the business up but at that level of debt they may not.

 

[Chris Marin]

Following the spongebob plan sounds OK. You can set up a new business as limited, or self employed or whatever you want.

Your creditors may well refer the debt to debt collection or keep writing / calling you.
"The business has ceased trading and has no assets" is what you respond to them with.

Possible a creditor will spend money to wind the business up but at that level of debt they may not.

Thanks so much for your reply, from what i've read its HMRC that may object to the DS01 as they are owed £1000 for VAT

 

[Mr D]

Thanks so much for your reply, from what i've read its HMRC that may object to the DS01 as they are owed £1000 for VAT

If they object you wait a while and do another DS01.