Debt collector letter

[Tilly7459]

Hi guys
So my company is awaiting strike off on companies house. It was objected to recently so just in limbo. Today I received a letter from D.R.S. who are now ‘acting’ for hmrc. My question is what will happen next due to my company no longer trading and have no assets. The sum involved is £4,200.
Do I leave things and wait for the company to eventually be struck off and will the debt collectors pursue further even with no assets.
Thank you for reading and any suggestions going forward,

 

[ChrisLambert]

If you are using an insolvancy company for the closing down of your business then it'd be worth a chat with them.

If not I can recommend these guy who have helped a few ex-clients of mine with wrapping up their businesses. P B C Business Recovery & Insolvency Limited - 01604 212150

Also worth speaking to DRS / HMRC and seeing what they say and what agreement can be reached.

 

[DebtRecoveryUK]

Hi guys
So my company is awaiting strike off on companies house. It was objected to recently so just in limbo. Today I received a letter from D.R.S. who are now ‘acting’ for hmrc. My question is what will happen next due to my company no longer trading and have no assets. The sum involved is £4,200.
Do I leave things and wait for the company to eventually be struck off and will the debt collectors pursue further even with no assets.
Thank you for reading and any suggestions going forward,

Hi Tilly

The company won't be struck off while HMRC objects. Debt collectors will likely keep contacting you. If the company has genuinely no assets, and this is proven, the matter may eventually settle — but it could take time. Engage, don't ignore, and you may avoid harsher action.

If you're unsure, speaking to an insolvency practitioner or accountant for specific advice is a good idea.

 

[Tilly7459]

Hi Tilly

The company won't be struck off while HMRC objects. Debt collectors will likely keep contacting you. If the company has genuinely no assets, and this is proven, the matter may eventually settle — but it could take time. Engage, don't ignore, and you may avoid harsher action.

If you're unsure, speaking to an insolvency practitioner or accountant for specific advice is a good idea.

I’ve contacted the debt company explaining the company is no longer trading and there are no assets. Also that we are on CH awaiting strike off

 

[Lisa Thomas]

Liquidation won't be worth it for a debt that small.

Is the company's registered office address a personal address of any of the directors - if so the debt collectors could start turning up to look for assets.

Did the directors follow the dissolution procedure and give notice to HMRC of the intention to file a DS01, or is CH striking it off for non filing of statutory documents?

 

[Michael Loveridge]

Hi Tilly

The company won't be struck off while HMRC objects.

Unfortunately (from a creditor's point of view) that's not true. If no positive action has been taken to recover the debt after 6 months then the company will be struck off even if the objection is still outstanding.

There seems to be no legal justification for this, as the debt remains legally recoverable until the expiry of the limitation period, and it seems wrong that Companies House can effectively deny a creditor their legal rights, but this is CH practice.

 

[Tilly7459]

Liquidation won't be worth it for a debt that small.

Is the company's registered office address a personal address of any of the directors - if so the debt collectors could start turning up to look for assets.

Did the directors follow the dissolution procedure and give notice to HMRC of the intention to file a DS01, or is CH striking it off for non filing of statutory documents?

Registered office is my accountants. Yes the dissolution procedure and notice to hmrc and intention to file DS01 (which was done)
thx for your reply

 

[DebtRecoveryUK]

Unfortunately (from a creditor's point of view) that's not true. If no positive action has been taken to recover the debt after 6 months then the company will be struck off even if the objection is still outstanding.

There seems to be no legal justification for this, as the debt remains legally recoverable until the expiry of the limitation period, and it seems wrong that Companies House can effectively deny a creditor their legal rights, but this is CH practice.

100% agree, too many companies get struck off owing large sums of money, the creditors suffers! Also and I'm not saying this in this case, but the company will just open another LTD and carry on like nothing has happened!

 

[fisicx]

Which is why invoice financing, trade credit insurance and other products exist. There is a lot that companies can do to protect themselves against bad debt, they just choose not to use them.

Even taking deposits and stage payments would alleviate the problem.

The builder we use takes money up front for materials. If the customer refuses he walks away from the job.

 

[Lisa Thomas]

Registered office is my accountants. Yes the dissolution procedure and notice to hmrc and intention to file DS01 (which was done)
thx for your reply

If you have followed all the steps, and the company cannot afford Liquidation (and no third party is willing to fund paying the creditor or the liquidation costs), there is little more you can do at this stage.

 

[Tilly7459]

If you have followed all the steps, and the company cannot afford Liquidation (and no third party is willing to fund paying the creditor or the liquidation costs), there is little more you can do at this stage.

In your view will my company eventually be struck off ?

 

[Elliot Green]

Unfortunately (from a creditor's point of view) that's not true. If no positive action has been taken to recover the debt after 6 months then the company will be struck off even if the objection is still outstanding.

There seems to be no legal justification for this, as the debt remains legally recoverable until the expiry of the limitation period, and it seems wrong that Companies House can effectively deny a creditor their legal rights, but this is CH practice.

There are so many zombie companies with outstanding bounce back loans that are kept on the register for long periods of time at the moment.

 

[Elliot Green]

100% agree, too many companies get struck off owing large sums of money, the creditors suffers! Also and I'm not saying this in this case, but the company will just open another LTD and carry on like nothing has happened!

The reason this happens is a culture where creditors do not enforce their rights.

 

[DebtRecoveryUK]

The reason this happens is a culture where creditors do not enforce their rights.

Absolutely agree. Creditors need to act quicker and understand the rights they do have.

Too many wait too long, hoping things will resolve and by the time they act, the company’s been struck off or liquidated, leaving them with nothing. Meanwhile, in some cases, the same directors pop up under a new name, carrying on like nothing happened.

The longer you delay, the less chance you have of recovery. Knowing your rights and taking timely action isn’t just smart it’s essential.

 

[Tilly7459]

Just an update. After I sent the debt collection firm an email explaining I was no longer trading I checked today and instead on outstanding balance it now says ‘closed’
So not sure what has or is happening now

Your Account Summary
Your account	Client	Balance
1422###	HM Revenue & Customs (HMRC)	(Closed)

 

[Lisa Thomas]

In your view will my company eventually be struck off ?

It will either eventually be struck off, or a credutor will liquidate it (unlikely for such a small debt)