Bankruptcy with a limited company

Discussion in 'Insolvency' started by ITcontractor17, May 4, 2020.

  1. ITcontractor17

    ITcontractor17 UKBF Newcomer Free Member

    13 4
    Good afternoon all,

    I hope you are well and safe.

    Due to health issues, I am unable to work at the moment. I have personal credit card and loan debt which I may not be able to pay back in a reasonable time frame.

    I am considering bankruptcy, however I understand that you can't be a director of a company and will get dissolved.

    I have a director's loan account of £1,000, no assets and my last tax bill (corp tax) payment is due next year, my question is what happens to this if I was to go bankrupt in the next few months?
     
    Posted: May 4, 2020 By: ITcontractor17 Member since: Jun 3, 2017
    #1
  2. Lisa Thomas

    Lisa Thomas UKBF Enthusiast Free Member

    3,486 436
    The debt owed to the Company will rank as an unsecured creditor of your Bankruptcy.

    Make sure you explore all personal options as a Debt Management Plan, Debt relief Order or an IVA might be more suitable than Bankruptcy.

    Stepchange will give you free advice:

    https://www.stepchange.org/contact-us.aspx
     
    Posted: May 4, 2020 By: Lisa Thomas Member since: Apr 20, 2015
    #2
  3. UK Contractor Accountant

    UK Contractor Accountant UKBF Big Shot Full Member - Verified Business

    4,908 848
    If you are talking personal debt relief then the ctax debt will still stand and be payable by the company.

    It is likely your overdrawn DLA will be more than £1K if there are no funds (assets) within the company to fund the c/tax debt.
     
    Posted: May 4, 2020 By: UK Contractor Accountant Member since: Sep 18, 2013
    #3
  4. ITcontractor17

    ITcontractor17 UKBF Newcomer Free Member

    13 4
    Thanks for your help, very grateful.
     
    Posted: May 4, 2020 By: ITcontractor17 Member since: Jun 3, 2017
    #4
  5. PDM31

    PDM31 UKBF Contributor Free Member

    62 2
    I've filed for bankruptcy which was confirmed two weeks ago, I'm the sole Director of a Limited company which I filed to be struck off in March. I know I'm not allowed to be a Director whilst bankrupt but I also don't have another Director to appoint.

    I put this information down on my bankruptcy form and assumed that would be sorted out then but I'm yet to hear anything about my bankruptcy. Do I need to inform companies house myself?
     
    Posted: May 28, 2020 at 9:23 AM By: PDM31 Member since: Jul 10, 2018
    #5