HELP!! LTD company gone bust can’t pay IP. Creditors forced me out of business.

[Alice Cooper]

Hello there - I have been reading this forum for a few weeks now and have to say that you guys really are amazing.
I’ve read many replies from people much like myself who feel that they’re in desperate need of help with nowhere to turn, who’s managed to turn things around where they otherwise believed that they could not, based on the advice offered on this forum - so with that in mind, I really need some help.
Or just to be able to talk

Single business woman, went into business not knowing what I was doing but ultimately hoping for the best.

6 years ago I set up a business as a sole trader - I didn’t have any qualifications and business wasn’t really my thing, however, after many many months of determination and the drive to succeed, I opened my first retail shop.

Unfortunately within a couple of weeks o had to close down due to covid so not the best start but hey, I achieved the goal so I wasn’t too disappointed as I knew it would be waiting for me once everything had resolved.

During this time my landlord of my home told me he was wanting to sell his house, something he promised me that he never ever would do !
Single mother with 3 children I was absolutely horrified.
I was advised by someone who I was “connected” with in a business sense, that if I registered my business as LTD, then I have a chance of getting a mortgage to buy my house.
They told me that if I worked hard for 18 months under a LTD status then I’d have this miraculous chance of being able to buy my house and save my children’s home !
I didn’t have much business sense, I’ll be completely honest with you, in fact, I say “not much” but I had none at all.
Did I know what it meant to be a ltd company ? No!!?
Did I fully understand my obligations and responsibilities ? No, I had no idea whatsoever.
My only and main concern was getting through covid, reopening this business and buying my rented home that my children and I had lived in for so many years.

Fast forward, shops were back open, I was doing ok… I was taking the money, but instead of being responsible with the takings, I was throwing it all back into more stock in the hope that I can become bigger and bigger.
I ended up renting a unit next door and expanding the shop, the more I made the more I put back into to stock, to renovations, the business became my everything and I was so so incredibly proud of myself because having had next to nothing as a child, coming from a poor family, with no education whatsoever, I actually felt like I had achieved something that made me worth it

Without continuing too much with this sob story.
I carried on trading and when my accounts came due, well, I didn’t know what to do?
They went overdue for some while before I eventually found an accountant to sort me out.
He had advised me on many occasions to stop buying so much stock because whilst having the stock “looks good”, I’ll never quite make the profit that I’m working towards because I’ve chucked it all back into the business.

So we are now in 2022 and the yeats coming to an end, - my landlord had until March 2023 to advise the bank of his plans.

Do you think I even had so much as a deposit for this house? No! I didn’t … why? Because I’d thrown everything back into the business in the hope that I could make it even bigger.

I don’t know if this was fate or otherwise but in jan of 2023 the house faced a catastrophic flood and I had to move out there and then ( luckily with somewhere to go )
My landlord claimed off his insurance, I lost all my belongings because I didn’t have house insurance and 2 years on this house has been renovated and is on the market for £400k, so it was win, win, for landlord who’d purchased it for £207,000 some years before.

So this business, ( sorry for the life story but I think it’s important I make you aware of how this mess came to be )

2023/2024, retail starts to decline quite a lot and I am seeing my businesses make less and less on years before.
Terrified of losing everything I took up an offer from a friend to revamp a unit that was attached to her business in a seaside town that was much busier than where my current 2 units were
The rent was peanuts and it meant she didn’t have to pay the rates on the building so everyone was happy
Not wanting to close my other two units down because they were my baby and I was still so so exceptionally proud, I decided to juggle these 3 units in the hope that the 3rd could compensate for any loss of trade at the originating business.
We get to July 2024 and contractors were falling behind, things were coming up, work wasn’t getting done the summer season was rapidly coming to an end and my third unit wasn’t even open yet.
Any monies made from the other 2 were now being thrown into the 3rd because the location was more favourable and I rapidly needed to do something to try and save my skin, only what I failed to realise was that I was actually making things worse
I racked up a further 20k debt in wholesale stock believing that I would make enough funds from the other units , as well as the new one, during the summer holidays, to pay these debts off.
It didn’t work
September came, school holidays were over and I’m sitting there with a third unit on an empty street in what is essentially a seasonal seaside town.
I knew then that I was buggered, absolutely buggered.
I contacted creditors for more time to pay and what they were asking for in terms of repayments was just beyond comprehension
I tried to explain my issue but they just did not want to know, not at all.
I contacted one of the suppliers and offered them the £8000 stock back, of which they refused.
This particular wholesaler used a B2B company to get their funds..
So they had been paid by a third party and then I had to pay this third party company who were based in a different country.
So of course they wasn’t interested in taking the stocks back, they’d been paid already.

No matter how much I tried to explain my situation and offer affordable payment solutions, the creditors wouldn’t budge.
One of them was a main supplier that I had used from the very beginning and spent thousands upon thousands of pounds with.

I’m now in a position where I couldn’t pay rent on my 2 units so had to give in notice and I’m absolutely heartbroken to say the very least
I tried to save the two original units but then letters were arriving from creditors which had additional fees added on, compensation costs, and these debts had increased by a further £5000
One supplier added a compensation charge of £3000 onto my bill for “late payment of invoice”, which saw a £5900 bill shoot up to £9000
This debt is currently with solicitors and they’ve told me that if they take it to a court they’re adding more compensation and court fees on top which will essentially see this one debt fly into £10k or more when the original balance was £5900
The B2B loan was £6000 and was with a trade insurer for recovery, however, they won’t accept any of my offers of payment at all.
Same as the £5900 creditor ( that’s not standing at £8900 )
I’ve tried and tried and tried and I’ve absolutely failed
I’m going to get court orders through the door shortly and I dont know what to do.
The stock I purchased for the third “pop up” unit hasn’t been touched.
This entire situation caused me so much mental distress that I just fell to bits

I can’t sleep.
I’m wandering around my house at 4am shaking with anxiety panicking who’s going to email me or phone me during the upcoming day.

My business has been forced into closure because creditors will not accept my offers of payment

I haven’t intentionally set out to not pay people. I just took a wrong turn because I believed that in opening a third unit I could potentially save the others that were struggling.

Had the creditors allowed for a reasonable payment plan until I got back on my feet I think I would have been ok - all bar the mental trauma it’s causing me.

I don’t know what to do.
I have around 24k saleable value sitting in that 3rd shop, untouched, untouched because I’d been too anxious to go into the unit and sell it.
And I have my 2 original units that are being cleared out next week with the intention of permanently ceasing trade, and let me tell you, I am absolutely broken by all of this.

I had a friend running the two original connecting units for me and they’re not much clued up on Ltd companies either

I’ve lost everything because I tried so hard and I just don’t know where to turn or what to do.
If only the creditors would give me chance to pay, just until I get back on my feet then perhaps I’d have a change of saving at least one unit

The third unit wasn’t registered as a ltd entity but I was silly enough to buy the stock under the ltd name so evidently I’ve buggered myself there, too, as I can’t keep them separate.
I’m so so desperate for some help

I look at my sons every day and I just question, what must they think of me.
Their mum went from having what they believed to be this big business - to now having absolutely nothing.
To crying everyday fearful of the days ahead.

Can someone please help me .
I never intended for this to happen, although I suppose none of us do!
I just got myself tangled in a few business things that I didn’t much understand, chucked everything I had back into the business despite being told to stop and now I’ve essentially lost it all because I’ve gone bust.

I can’t afford liquidation and have been reading the SpongeBob plan
My stock asset is less than my debts, now….

What do I do guys? Walk away? Fight?????
My mental health is shot!

Thank you so so much for reading my post and I’m sorry I’ve waffled on as much as I have - I don’t really have anyone to talk to and given the mess that I’m in, I just don’t know what else to do.

Have a wonderful Sunday xx ( sorry if there are a lot of typos, I’ll fix them when I get chance )

 

[Newchodge]

Ok

Step 1, relax, take a deep breath and stop thinking in circles. Go for a walk in the bracing cold and think about how the cold makes your fingers tingle.

There are ways out of this, it is just a question of finding the best.

Could you clarify, your first 2 units and all the stock are in the name of the ltd company?

What is the position of the third unit? Peanuts rent and in your name as sole trader?

Oh and breathe again.

 

[Mark T Jones]

Hi

I'm sorry to hear of your situation. You've been honest enough to point out you were clueless so that's a good start.

Hopefully one of the IPs on here will be along to guide you on the best way forward (it won't be painless - but will put things in perspective for you). I suspect that setting up a Ltd company will be very much in your favour

With the benefit of hindsight - for the benefit of others - what is absolutely missing here is planning and projections. Even cursory projections would have flagged and possibly prevented a number of the mistakes made. That's why I constantly bang on about it.

With regards to creditors- they aren't to blame. They are business people running businesses, with not only a right but a duty to recover what they are owed. (As an aside, stark reality is that 'more time' is almost definitely not what your business needs)

Hopefully, with the help of our resident IPs you will see a clear way through!

 

[Alice Cooper]

Thank you so much for the reply

I wish I could go for a walk but when I’m left to think I over think and it makes things so much worse

The two units that I’ve had to let go all had limited stock inside and it’s my registered address for the limited company - when I realised I was in such a mess, I stopped stocking those two and tried to sell whatever I could, so there’s not a great deal in terms of value and assets in there at all as the stock value isn’t worth much.

I have about 10k stock value in those two units and then there’s fittings etc

Those two units is the address that is registered on all the credit letters

The third location doesn’t even have a lease yet.
It “opened” end of august and due to the pressure from creditors I essentially just gave up

My friend who owns the unit knows the situation and thankfully has said no rent payable until I’m sorted but I foolishly stocked that unit up using wholesale accounts that were registered to the ltd company.
Meaning that, I guess you could say that regardless of not yet having this lease ( due to how long it took to get going ) it doesn’t actually belong to anyone other than who owns the building

My name isn’t yet associated but there is signage so I guess you can say that, lease or no lease, a sign is up and there’s stock in there - also stock was delivered directly to that address so there’s a clear trace of where the stock actually went !

I’m going to lose everything

Thank you for your message

Ok

Step 1, relax, take a deep breath and stop thinking in circles. Go for a walk in the bracing cold and think about how the cold makes your fingers tingle.

There are ways out of this, it is just a question of finding the best.

Could you clarify, your first 2 units and all the stock are in the name of the ltd company?

What is the position of the third unit? Peanuts rent and in your name as sole trader?

Oh and breathe again.

 

[Alice Cooper]

Hi

I'm sorry to hear of your situation. You've been honest enough to point out you were clueless so that's a good start.

Hopefully one of the IPs on here will be along to guide you on the best way forward (it won't be painless - but will put things in perspective for you). I suspect that setting up a Ltd company will be very much in your favour

With the benefit of hindsight - for the benefit of others - what is absolutely missing here is planning and projections. Even cursory projections would have flagged and possibly prevented a number of the mistakes made. That's why I constantly bang on about it.

With regards to creditors- they aren't to blame. They are business people running businesses, with not only a right but a duty to recover what they are owed. (As an aside, stark reality is that 'more time' is almost definitely not what your business needs)

Hopefully, with the help of our resident IPs you will see a clear way through!

Thank you for your reply

I’m sorry if I sounded so ignorant when I mentioned the creditors
I know I’m not owed anything so please don’t think that I’m looking for someone else to blame.
I know I’ve messed up but please believe me when I say that it wasn’t greed, it wasn’t for the purpose of making all this extra money and keeping it for myself, it was because I urgently needed to try and save the businesses without having to give them up because they honestly meant so much to me as it was the one thing, besides my children, I could be proud of

How look at me - what a bloody mess!
But I know I’ve messed it all up and if I could change it all and not purchase that stock, then I would, because I don’t think I’d be in this situation now !

And I totally accept that I didn’t know what I was doing when I went into this - I absolutely didn’t!
But all I had to rely on was myself. I tried

And here we are xx

 

[Elliot Green]

Sorry about your situation.

I assume the stock won't pay the Liquidation costs by the time it is valued, collected, stored, sold etc. It *might* make a small contribution but that depends on so many factors.

If strike off is objected to by creditors, then Liquidation might be the way forward, either through a cheap voluntary Liquidation or if this is not affordable leaving it to creditors to obtain a Compulsory Winding Up Order.

 

[Alice Cooper]

Sorry about your situation.

I assume the stock won't pay the Liquidation costs by the time it is valued, collected, stored, sold etc. It *might* make a small contribution but that depends on so many factors.

If strike off is objected to by creditors, then Liquidation might be the way forward, either through a cheap voluntary Liquidation or if this is not affordable leaving it to creditors to obtain a Compulsory Winding Up Order.

Hi Elliott
Thank you for your response

Where do I stand with this then please

I don’t have the money for liquidation and was going to go with the SpongeBob
However, I’m not sure what I need to do.

I have the 2 units closing next week but it hasn’t taken any money for weeks now but I was just waiting on landlord decision as to whether I can vacate painlessly or whether we would have to agree to an early termination of lease.

Thankfully I can leave with just owing a months rent

With this in mind if I close down next week the 2 units registered to the limited company - what do I then have to do?

What about the stock in the third unit that’s not registered to anyone or anything ???
Do I walk away from the 2 main ones first and then just leave the 3td sitting??????

When I walk away, what do I need to do?
I won’t sleep for thinking of bailiffs or people sending me emails

I cannot put into words what this has done to my mental health

I’m not looking for an easy way out I’m really not - but given my situation, I’m in urgent need of some help and advice, even just a friend to talk to, you guys on here will be more than enough, so that I don’t feel so alone

In a nutshell, I’m absolutely terrified

Can I close my doors, walk away and ignore it ?
I don’t have anything to offer anyone in terms of repayments and when I tried to speak with creditors I offered the stock back as sending enforcements into a place that will willingly hand over the goods is absolutely pointless

And what about CCJs? If they go to the shops that are closed down, where does that leave me ??

I honestly don’t want to feel like I’m running away, I really don’t - I mean they can have what I’ve got but I’m gonna tell you, it’s not gonna be enough by any means which is essentially why I pleaded the supplier take the stock back so they can resell at the full cost.

I’m already not sleeping
I can’t concentrate throughout the day
I’m worried about people turning up at the door, looking for me.
Scared of what letters may get redirected to me

I never ever imagined it would end like this. Ever

Thanks again, Elliott x

 

[Daybooks]

Prepare yourself a business financial plan (budget). You want to know if you can trade through the difficulties and this will help you assess the cash requirements and identify what you have to do and of course whether it is achievable.

Its preparation is itself a positive step and will focus attention on what matters for the business. When the numbers do not add up then explore ways to make them so do. You may say you have already done this to some extent but I would contend not to the extent you should have or need to. Any IP would/should want this anyhow.

If the business is profitable but suffered from unfavourable circumstances and lack of attention to cash flow then the business model is still profitable. It just needs to be managed better. Use the financial plan to help make some informed decisions. If it proves viable then you can achieve it by following that plan and knowledge is a powerful asset. Keep on top of it because if and when things change as they inevitably do, use the plan to implement corrective action.

Don’t walk away without a fight. Put yourself in the best position to win that fight.
Good luck.

 

[Elliot Green]

Hi Elliott
Thank you for your response

Where do I stand with this then please

I don’t have the money for liquidation and was going to go with the SpongeBob
However, I’m not sure what I need to do.

I have the 2 units closing next week but it hasn’t taken any money for weeks now but I was just waiting on landlord decision as to whether I can vacate painlessly or whether we would have to agree to an early termination of lease.

Thankfully I can leave with just owing a months rent

With this in mind if I close down next week the 2 units registered to the limited company - what do I then have to do?

What about the stock in the third unit that’s not registered to anyone or anything ???
Do I walk away from the 2 main ones first and then just leave the 3td sitting??????

When I walk away, what do I need to do?
I won’t sleep for thinking of bailiffs or people sending me emails

I cannot put into words what this has done to my mental health

I’m not looking for an easy way out I’m really not - but given my situation, I’m in urgent need of some help and advice, even just a friend to talk to, you guys on here will be more than enough, so that I don’t feel so alone

In a nutshell, I’m absolutely terrified

Can I close my doors, walk away and ignore it ?
I don’t have anything to offer anyone in terms of repayments and when I tried to speak with creditors I offered the stock back as sending enforcements into a place that will willingly hand over the goods is absolutely pointless

And what about CCJs? If they go to the shops that are closed down, where does that leave me ??

I honestly don’t want to feel like I’m running away, I really don’t - I mean they can have what I’ve got but I’m gonna tell you, it’s not gonna be enough by any means which is essentially why I pleaded the supplier take the stock back so they can resell at the full cost.

I’m already not sleeping
I can’t concentrate throughout the day
I’m worried about people turning up at the door, looking for me.
Scared of what letters may get redirected to me

I never ever imagined it would end like this. Ever

Thanks again, Elliott x

Ultimately strike off can only be done if a company director fully complies with its terms and then creditors can still object and delay matters potentially, which still leaves director compliance requirements running. The terms of voluntary strike off are stringent and key items are detailed on the DS01 form itself as a safeguard.

Due to contractual provisions without examination of all the facts, it is not realistic to say this will happen or that will happen or do this or do that etc. Normally this would be sorted out through the liquidation process with the company properly and orderly wound up.

There is a vast wealth of information on our website about these and associated issues and a search facility to enable you to extract general information where you can ask about walking away etc.

I hope this helps.

 

[Alice Cooper]

Prepare yourself a business financial plan (budget). You want to know if you can trade through the difficulties and this will help you assess the cash requirements and identify what you have to do and of course whether it is achievable.

Its preparation is itself a positive step and will focus attention on what matters for the business. When the numbers do not add up then explore ways to make them so do. You may say you have already done this to some extent but I would contend not to the extent you should have or need to. Any IP would/should want this anyhow.

If the business is profitable but suffered from unfavourable circumstances and lack of attention to cash flow then the business model is still profitable. It just needs to be managed better. Use the financial plan to help make some informed decisions. If it proves viable then you can achieve it by following that plan and knowledge is a powerful asset. Keep on top of it because if and when things change as they inevitably do, use the plan to implement corrective action.

Don’t walk away without a fight. Put yourself in the best position to win that fight.
Good luck.

Thank you for this

My biggest struggle is the money I owe
It keeps going up and up with “compensation” costs added and various other fees!
I just cannot see any way out of this

One creditor wants £2000 a month -
Another wanted roughly the same but then it went to solicitors and I was advised that I had until January 2nd to pay the £8900 before they proceed to court.
I contacted the offices to discuss this as the debt was originally with a trade insurer for the purpose of debt collection, where I offered £200 a month on a temporary basis until we got out of the winter period and then I would increase the payment - paying off more and more as business got better.
The creditor wanted the £200 immediately over the phone and I didn’t have it - I proposed end of month payments so to allow for me to accumulate funds and be able to stick to the agreement but they wasn’t interested.

Whilst I owe this money, with no manageable arrangements in sight, I’m not sure what kind of business projection I can put into place becauee whether the business be viable or otherwise, I cannot pay them right now.

I have tried explaining to the creditors that I would much prefer to enter into an agreement whereby I pay a lower amount over the winter months with the intention of increasing that payment thereafter, to allow me to continue to trade, rather than to accept that it’s all just too much to bare, walk away and then creditors won’t get anything

I’m not understanding their logic!?
Yes I’m very aware of what I’ve done, I made the wrong decision but I’ve been in business 6 years and albeit quite a catastrophic move that’s ultimately seen me going out of business, I’ve held on for 6 years… for someone who didn’t have a clue, I don’t think I’ve done too bad…
I’m trying and trying to get this point across to anyone who will listen but nobody’s hearing me
Mi could try and fight this in court but ultimately the court will follow instruction from creditors

I just don’t know where to turn as I’m already on the edge and I’m very fearful of being tipped further over the edge

I spoke to my accountant and he said when we stop enjoying the job that we do or if we begin to lose sleep over it, it’s time to stop…

I think I perhaps have an attachment to the business which is why I’m finding this so so difficult
Like I said, it’s really all I ever succeeded in and I was exceptionally pleased with myself.
To have to take down my logos - pack up that stock and leave next week, it’s broke my heart - but at the same time, my mental health is absolutely shattered

I contacted MIND UK for help - they dorky seem to much understand so I stopped communicating with them

 

[Newchodge]

My biggest struggle is the money I owe
It keeps going up and up with “compensation” costs added and various other fees!
I just cannot see any way out of this

What money do YOU owe? Do you mean the money owed by the limited company? The Ltd company is not you.

 

[Alice Cooper]

What money do YOU owe? Do you mean the money owed by the limited company? The Ltd company is not you.

Hey
I know but I’m ultimately responsible for the business and the company is my baby. I know people say that registered as limited is an advantage but I went into this for personal reasons
- it was something so close to my heart - and I just feel like I’m personally connected so therefore personally responsible and liable because I cannot detach myself

The business is me … does that make sense? I am struggling to let it go

I just don’t know what to do ….
If I walk away, I don’t even know how to!
I’ve taken Elliott’s advice and used the search option but the threads are full of people who seem equally as confused and don’t know what to do or how to do

 

[Newchodge]

Hey
I know but I’m ultimately responsible for the business and the company is my baby. I know people say that registered as limited is an advantage but I went into this for personal reasons
- it was something so close to my heart - and I just feel like I’m personally connected so therefore personally responsible and liable because I cannot detach myself

The business is me … does that make sense? I am struggling to let it go

I just don’t know what to do ….
If I walk away, I don’t even know how to!
I’ve taken Elliott’s advice and used the search option but the threads are full of people who seem equally as confused and don’t know what to do or how to do

I am sorry, but you have to face reality. Your company is insolvent - it cannot pay the bills that are due. It would be illegal to continue to trade while insolvent. Your creditors are not prepared to give you the time to pay that you have asked for. Why they have made this decision, whether it is a good decision for them to have made, all of those things don't matter. No one on here or anywhere else can help you make your creditors give you time to pay. No one is going to give you the money to carry on. But you can get help to take the next steps to close the company. You may find that, once you make the decsiion to do that, your mental health will recover.

 

[ThatDevAaron]

Hey
I know but I’m ultimately responsible for the business and the company is my baby. I know people say that registered as limited is an advantage but I went into this for personal reasons
- it was something so close to my heart - and I just feel like I’m personally connected so therefore personally responsible and liable because I cannot detach myself

The business is me … does that make sense? I am struggling to let it go

I just don’t know what to do ….
If I walk away, I don’t even know how to!
I’ve taken Elliott’s advice and used the search option but the threads are full of people who seem equally as confused and don’t know what to do or how to do

If you've registered an LTD, you aren't liable for your company's debts (it's a separate legal entity), however, there can be documents such as a personal guarantee that make you responsible for some of the finance taken out.

 

[Alice Cooper]

To the poster who said don’t walk away without a fight

I’ve tried - I’ve really tried to make people listen and hope for a favourable solution but my only hope would be to try and come to an agreement with the courts, but in saying that, I still don’t have the funds they’re asking for but that doesn’t mean I won’t have it or I can’t save the business, it just means that I don’t have it right now

I’m not saying I’m not going to pay
I’m simply saying I’ve landed upon a very very hard time because I made a bad decision but that’s just one bad decision in 6 years

I’m at such a loss
Do I walk away and save my sanity or keep trying!? I just feel like I’m not going to win this one at all, so I’m looking for other options where I can possibly say, ok, I’ve not won this time, I’ve tried my best, it’s been a good 6 years, I’ve made some mistakes but atleast I had this experience and I can be proud that it lasted 6 years without facing any trouble

I feel like such a failure.
I don’t know what’s killing my mental health more - the creditors or the awful awful feeling of failing and defeat !!
Y’all are probably thinking, oh cmon woman pull up your big girl pants and sort yourself out - I would, believe me I would, if I knew how to!

It’s very scary for me because this was my only business and only experience in something like this.
Whereas there are lots of people out there who have succumbed to situations like this more than once and they’ve held their hands up and said, “ sod it im done”, knowing how to proceed once they’ve made that decision.
It’s the fear of the unknown that’s scaring me !
I don’t know what to do or where I’m headed or how it’s going to end for me

But I’m beating myself up something chronic over this feeling of feeling and having destroyed something that I spent so much money, time and love on

Thank you once again for reading

 

[Alice Cooper]

I am sorry, but you have to face reality. Your company is insolvent - it cannot pay the bills that are due. It would be illegal to continue to trade while insolvent. Your creditors are not prepared to give you the time to pay that you have asked for. Why they have made this decision, whether it is a good decision for them to have made, all of those things don't matter. No one on here or anywhere else can help you make your creditors give you time to pay. No one is going to give you the money to carry on. But you can get help to take the next steps to close the company. You may find that, once you make the decsiion to do that, your mental health will recover.

I know I need to face reality
It just all happened so quick and so unexpected and it’s a very rude awakening when you’re dealing with it all alone - which is why I’m here, and I’m so thankful for your input xx

 

[Gyumri]

Can I close my doors, walk away and ignore it ?

Yes as you can because you are not a sole trader but we're trading as an Ltd which means that the company's creditors always knew that you personally had limited liability.

I spoke to my accountant and he said when we stop enjoying the job that we do or if we begin to lose sleep over it, it’s time to stop…

Correct - and time to move on to begin a better business using your hard-gained experience.

I just feel like I’m personally connected so therefore personally responsible and liable because I cannot detach myself

Well the law says that an Ltd is completely separate from a person.

You do have stock in the 3rd unit but the summer season is over and there may only be a few drunks walking by or people walking their dogs so you can only expect to tick over until some creditor actually petitions to wind up the company.

I would face reality and admit that it hasn't worked out the way you planned and so now it's time to use your business experience and start afresh with another new Ltd.

There's nothing you can or need to do to salvage the situation.

 

[Newchodge]

Yes as you can because you are not a sole trader but we're trading as an Ltd which means that the company's creditors always knew that you personally had limited liability.

Correct - and time to move on to begin a better business using your hard-gained experience.

Well the law says that an Ltd is completely separate from a person.

You do have stock in the 3rd unit but the summer season is over and there may only be a few drunks walking by or people walking their dogs so you can only expect to tick over until some creditor actually petitions to wind up the company.

I would face reality and admit that it hasn't worked out the way you planned and so now it's time to use your business experience and start afresh with another new Ltd.

I agree. Except that the stock in the 3rd unit was purchased on the ltd company's account, so should be the property of the ltd company.

 

[DWS]

Yes as you can because you are not a sole trader but we're trading as an Ltd which means that the company's creditors always knew that you personally had limited liability.

Correct - and time to move on to begin a better business using your hard-gained experience.

Well the law says that an Ltd is completely separate from a person.

You do have stock in the 3rd unit but the summer season is over and there may only be a few drunks walking by or people walking their dogs so you can only expect to tick over until some creditor actually petitions to wind up the company.

I would face reality and admit that it hasn't worked out the way you planned and so now it's time to use your business experience and start afresh with another new Ltd.

What advice has your Accountant given?
Seems strange that everything was okay for 6 years and now it seems to have imploded.
What have the accounts been showing for the past 6 years? this usually gives some indication of how things are going?

 

[Alice Cooper]

What advice has your Accountant given?
Seems strange that everything was okay for 6 years and now it seems to have imploded.
What have the accounts been showing for the past 6 years? this usually gives some indication of how things are going?

I was informed that I should have stopped putting so much money into stock but I didn’t listen there

Unfortunately the place where the two shops are located is a seasonal town but it’s small - it’s a tourist attraction so it heavily relies on tourists.
This passed 12 months for everyone in the area had been absolutely diabolically bad but because I had the two units it meant I essentially had double the rent, so where others could tick over nicely, I found myself in a massive struggle to survive

I then took up offer to put stock into a friends unit - this helped her out because it meant she wouldn’t be paying additional business rates
We agreed that I set up shop but unfortunately it took over 5 months to sort meaning that as soon as summer was over I was facing a problem bigger than anticipated

I had run up further debt to stock this third unit but the stock was purchased before the project was finished, so with a race against time to get it all sorted and contractors slacking, that stock was sitting there not being sold which meant I couldn’t pay the bills that came from purchasing the stock

I considered moving it all over to the other two units but was very very mindful that I would have been in a so I lost situation there, too, given that I’d opened this third unit primarily because trade was getting worse in the other location.
It didn’t help matters at all that shops around me were closing left right and centre, meaning that the street just looked dead, empty and uninviting

Traders had had enough of slow trade - couldn’t afford the high rental charges and just packed in.
When this happened it has a terrible knock on effect on everyone around them and then we saw more people closing.
There’s around 5 shops closed around my business, alone…
With several more at the top end of the street.

I bet you’re thinking “ well there’s your answer” and yes, you’re absolutely Right, but the main reason for me being in this mess is because I decide to try and rescue one problem by creating another and it went horribly wrong

I hope this explains the situation a little more xx

 

[Alice Cooper]

Sorry for the typos … if you could advise how I edit the posts I’ll sort this out
My fingers are typing at 100mph

 

[DWS]

I was informed that I should have stopped putting so much money into stock but I didn’t listen there

Unfortunately the place where the two shops are located is a seasonal town but it’s small - it’s a tourist attraction so it heavily relies on tourists.
This passed 12 months for everyone in the area had been absolutely diabolically bad but because I had the two units it meant I essentially had double the rent, so where others could tick over nicely, I found myself in a massive struggle to survive

I then took up offer to put stock into a friends unit - this helped her out because it meant she wouldn’t be paying additional business rates
We agreed that I set up shop but unfortunately it took over 5 months to sort meaning that as soon as summer was over I was facing a problem bigger than anticipated

I had run up further debt to stock this third unit but the stock was purchased before the project was finished, so with a race against time to get it all sorted and contractors slacking, that stock was sitting there not being sold which meant I couldn’t pay the bills that came from purchasing the stock

I considered moving it all over to the other two units but was very very mindful that I would have been in a so I lost situation there, too, given that I’d opened this third unit primarily because trade was getting worse in the other location.
It didn’t help matters at all that shops around me were closing left right and centre, meaning that the street just looked dead, empty and uninviting

Traders had had enough of slow trade - couldn’t afford the high rental charges and just packed in.
When this happened it has a terrible knock on effect on everyone around them and then we saw more people closing.
There’s around 5 shops closed around my business, alone…
With several more at the top end of the street.

I bet you’re thinking “ well there’s your answer” and yes, you’re absolutely Right, but the main reason for me being in this mess is because I decide to try and rescue one problem by creating another and it went horribly wrong

I hope this explains the situation a little more xx

To be honest no it didn’t explain it at all, I just wanted to know the advice that had been given by your Accountant, this situation could not have just come about it must have been ongoing and surely you took advice before getting the third unit?

 

[Alice Cooper]

To be honest no it didn’t explain it at all, I just wanted to know the advice that had been given by your Accountant, this situation could not have just come about it must have been ongoing and surely you took advice before getting the third unit?

I didn’t take advice no

My way of thinking was that if I took my friends offer regarding the third unit, in an area that’s not got closed shops all around it, I’m bound to take more income from that third one and potentially cover the temporary losses from the other 2.

The area where the other 2 are situated Has become a dying trade and over the last year it’s drastically gone down hill

In explaining this to a friend she kindly offered me this third unit for virtually nothing so to allow me to sell

The project essentially started in April but it took until august to complete

When I told the accountant he just responded with “ you’ve missed the crucial trading period “

I think if I’d have done one of two things I may not be in this position

1) NOT done it at all
2) Had it open before summer

Had I not done it I wouldn’t have accumulated the debt and therefore wouldn’t be in this situation

Had I owned before summer holidays I’d have made enough money to scrape through and pay the debt accumulated

I know I’m ultimately responsible but this situation spiralled out of control and when I told my accountant he simply said “ you should have come to see me before now “

He wasn’t aware that trade had collapsed in the area of the 2 units

Traders have been desperately trying to keep their businesses afloat and some just gave up all togeyher

I tried to run with “ let’s try sell stock from a busier location “

It didn’t work But it was an accumulation of different reasons for why it didn’t work
Contractor delays, the previous tenant of 3rd location took longer than we thought to vacate

It wasn’t just me having a silly spare of the moment idea, I was trying to rescue the problem but it all collapsed

The plan was almost fool proof until obstacles started to arise and the trade in location 1 was dropping more and more

Panic set in rapid

 

[Daybooks]

To the poster who said don’t walk away without a fight

I’ve tried - I’ve really tried to make people listen and hope for a favourable solution but my only hope would be to try and come to an agreement with the courts, but in saying that, I still don’t have the funds they’re asking for but that doesn’t mean I won’t have it or I can’t save the business, it just means that I don’t have it right now

I’m not saying I’m not going to pay
I’m simply saying I’ve landed upon a very very hard time because I made a bad decision but that’s just one bad decision in 6 years

I’m at such a loss
Do I walk away and save my sanity or keep trying!? I just feel like I’m not going to win this one at all, so I’m looking for other options where I can possibly say, ok, I’ve not won this time, I’ve tried my best, it’s been a good 6 years, I’ve made some mistakes but atleast I had this experience and I can be proud that it lasted 6 years without facing any trouble

I feel like such a failure.
I don’t know what’s killing my mental health more - the creditors or the awful awful feeling of failing and defeat !!
Y’all are probably thinking, oh cmon woman pull up your big girl pants and sort yourself out - I would, believe me I would, if I knew how to!

It’s very scary for me because this was my only business and only experience in something like this.
Whereas there are lots of people out there who have succumbed to situations like this more than once and they’ve held their hands up and said, “ sod it im done”, knowing how to proceed once they’ve made that decision.
It’s the fear of the unknown that’s scaring me !
I don’t know what to do or where I’m headed or how it’s going to end for me

But I’m beating myself up something chronic over this feeling of feeling and having destroyed something that I spent so much money, time and love on

Thank you once again for reading

Your creditors understandably want immediate payment full or part because they are cutting their losses and see no evidence of forthcoming payments.

The business plan takes the emotion out of it. You are looking at what you could do with, if I have followed, just the one unit and £26k sales value of stock.

One and probably most pressing objective is to trade out of your current difficulties; avoiding the overtrading issue. Work out the possible income streams and expenditure that would entail and over what time period. What future stock could you purchase bearing in mind this may need to be cash purchases for a time. What income would this generate? Do all of this in as much detail and time resolution as you possibly can. Bear in mind this exercise would identify probable tax liabilities (VAT, PAYE and or corporation tax) that will need to be paid where applicable. Then with the resultant (hopefully) positive cash flow you can look at paying off the existing creditors based on what cash is available and when.

This plan will lead to lots of what if questions being asked. That is its strength. You are where you are but with a supportive IP and or financial plan I would suggest there is an opportunity worthy of exploring. If you can share some of these plans with your creditors then they too can make some decisions; they have a reason to listen to you. The best decisions are always informed ones.

The plan will tell you whether you have a chance of winning the fight! A different proposition entirely.

Good luck.

 

[Mark T Jones]

I Haven't read all the posts, but it really is very important that you separate what is legally 'you' and what is legally your Ltd company - any IP will want to know/do this

Irrespective of emotion, they are different

If you have contracts, what are the names of the parties?

Similarly invoices etc?

You may find that your personal liabilities are small.

Also, if you plan to rebuild, you need to understand these things.

 

[Alice Cooper]

Your creditors understandably want immediate payment full or part because they are cutting their losses and see no evidence of forthcoming payments.

The business plan takes the emotion out of it. You are looking at what you could do with, if I have followed, just the one unit and £26k sales value of stock.

One and probably most pressing objective is to trade out of your current difficulties; avoiding the overtrading issue. Work out the possible income streams and expenditure that would entail and over what time period. What future stock could you purchase bearing in mind this may need to be cash purchases for a time. What income would this generate? Do all of this in as much detail and time resolution as you possibly can. Bear in mind this exercise would identify probable tax liabilities (VAT, PAYE and or corporation tax) that will need to be paid where applicable. Then with the resultant (hopefully) positive cash flow you can look at paying off the existing creditors based on what cash is available and when.

This plan will lead to lots of what if questions being asked. That is its strength. You are where you are but with a supportive IP and or financial plan I would suggest there is an opportunity worthy of exploring. If you can share some of these plans with your creditors then they too can make some decisions; they have a reason to listen to you. The best decisions are always informed ones.

The plan will tell you whether you have a chance of winning the fight! A different proposition entirely.

Good luck.

Thank you so very much for this

Do I even have time for this?

The creditors are already talking CCJ and the 2 units are due to be handed back next week leaving me with just the 3rd that is fully stocked

I feel like it’s a race against time
I did send over a proposal to the solicited whereby I outlined that to continue trading is in everyone’s best interest because I can pay them back
These solicited have ignored all correspondence - they won’t call me back, won’t reply to emails, absolutely nothing - so my bet is this is now on its way to the county court

So with that in mind, I would have 28 days to respond to the claim and if I dispute it I could have a further 28 days.
My grounds for dispute is the further £3000 compensation charge added

If you were in my situation, would you walk away, knowing you don’t have much time left before this situation starts to get even messier, or would you project a business plan / defence to the court?

Defending the claim could see myself in a further mess that I cannot mentally cope with because if I’m not mistaken, the court doesn’t have to allow for a manageable payment plan and can go straight for enforcements ?


Based on this, how would you proceed ?

Im not sure how much fight I have left ! X

 

[Gyumri]

The creditors are already talking CCJ and the 2 units are due to be handed back next week leaving me with just the 3rd that is fully stocked

Where's the problem? Any ccj would be against the company. Your time is up regarding this business and so there's nothing to fight.

Bailiffs can distrain only on goods that belong to the company and as the company hasn't even paid for the goods in the 3rd unit it would be a bit cheeky to take away that stock to pay creditors because it would be akin to selling their own stock at auction to repay what they haven't received from you! Your creditors would be cutting their own noses to spite their faces.

So time to move on. You can defend any court proceedings by returning the defence form on time which would drag out the court action for another year and prolong the suffering of creditors but it might give you a breathing space to turn the business around in the meantime.

So in a nutshell it seems your creditors have a lot more to worry about than you. I would throw in the towel and move on to richer pickings.

 

[Daybooks]

Thank you so very much for this

Do I even have time for this?

The creditors are already talking CCJ and the 2 units are due to be handed back next week leaving me with just the 3rd that is fully stocked

I feel like it’s a race against time
I did send over a proposal to the solicited whereby I outlined that to continue trading is in everyone’s best interest because I can pay them back
These solicited have ignored all correspondence - they won’t call me back, won’t reply to emails, absolutely nothing - so my bet is this is now on its way to the county court

So with that in mind, I would have 28 days to respond to the claim and if I dispute it I could have a further 28 days.
My grounds for dispute is the further £3000 compensation charge added

If you were in my situation, would you walk away, knowing you don’t have much time left before this situation starts to get even messier, or would you project a business plan / defence to the court?

Defending the claim could see myself in a further mess that I cannot mentally cope with because if I’m not mistaken, the court doesn’t have to allow for a manageable payment plan and can go straight for enforcements ?


Based on this, how would you proceed ?

Im not sure how much fight I have left ! X

In my view the business plan is essential; arguably the only thing that matters because it spells out whether continuing is viable. Why wouldn’t you want to know this?

I suspect the solicitor(s) you have responded to were just instructed to send a letter and not otherwise correspond. Maybe the legal bods here could opine but maybe future letters give your intended outcome if no reply is received with 28 days or so.

The plan would support your proposal and show willingness on your part. If the business plan shows a route out and a route to sustained profitability then assess the non financial impacts it may entail and make your decision. Thus let the plan help you make an informed decision.

As a director of the limited company you do have other responsibilities and considerations. Read up on the info suggested by @Elliot Green and you may get more info after the weekend.

 

[WaveJumper]

Its been said already but you really need to take a very deep breath and again echoing the advice above sit down and make a list, you really need to establish, and I would go as far as saying top priority, what does the Ltd owe and what do you personally owe. What personal guarantees if any could be hanging over you.

You need to know this and as much as you might hate the thought from what i have read so far your Ltd is a busted flush. Take the offers from any of the IPs on here for free advice.

Personally for me the next thread from you I want to read is - I am personally liable for x.y.z or thank god for small mercies the liabilities all lie with the Ltd

 

[japancool]

OK, repeat after me... "sh*t happens". Now shrug your shoulders.

Been there, done that, lost it all, was declared bankrupt. I know all about that feeling like you've failed - but hey, sh*t happens. What's important now is what to do about it.

The business is gone. Once you accept that, you can start to take practical steps to deal with it. Forget that whole thing about the business being your baby. I felt that way, but it doesn't help. And it's not worth pouring your whole identity into it. I did,, and it cost me my kidneys and my left leg.

As others have mentioned, it's important to understand what debts are the company's and which ones are yours. Anything that you have personally guaranteed, any court judgement against you personally (not the company) and any director's loans are the ones you need to worry about. Everything else is the company's and won't affect you personally. Once you know the scale of those, you can understand your real position, which may not be as bad as it sounds.

Here's something you absolutely should do - call the Business Debtline on 0800 197 6026. Do it tomorrow morning, first thing. They're a charity, specialising in business debt. @Chris Callaghan will probably be along at some point to explain more, but they will understand your position, be able to offer help and support, and they won't judge you. And they'll listen to you.

And let me offer a bit of light at the end of the tunnel. I re-started my business a few years later. Last year wasn't great. A downturn of worrying proportions, similar to that which ruined my first attempt, but this time, I knew how to handle it. I could manage cashflow, stay on top of debt, not bury my head in the sand, and now I'm pretty much out the other side with business picking up, most debts dealt with and things back on track. Had I not failed the first time, I wouldn't have known how to get here.

 

[tony84]

I did not read everything but take your emotion out of it. Think like a business person, toughen up and and not a lamb to slaughter.

Im no expert but:
1) If everything is in the name of the limited company, then the limited company is responsible - not you. So if there are debts, they can take the limited company to court. They can recover the costs from the limited company. If the company cant pay them, then thats the end of it. Job done nothing to worry about.
2) If there are any personal guarantees, then the companies go after the limited company to recover their money. If the limited company cant pay they then come to you. As you have no house in your name then they can come after your assets (car, jewellery, anything of value). If you have none then they have a choice - make you bankrupt or knock it on the head. But this is ONLY if you have any personal guarantees.

So as Newchodge says, stop worrying. If you are losing money on a day to day basis close the business. This limits your losses. Have a look at any agreements you have with your creditors, do you have any personal guarantees? If not, let the companies huff and puff. Tell them the business is closing as its not viable.

Concentrate on the tax bill.

I am not 100% sure if you can do this, but you could potentially put the assets on ebay and sell as a job lot. Set up a new company to buy the assets from the old company. Use the money to pay towards the debts and then you could open again under the new name.

 

[Elliot Green]

Hey
I know but I’m ultimately responsible for the business and the company is my baby. I know people say that registered as limited is an advantage but I went into this for personal reasons
- it was something so close to my heart - and I just feel like I’m personally connected so therefore personally responsible and liable because I cannot detach myself

The business is me … does that make sense? I am struggling to let it go

I just don’t know what to do ….
If I walk away, I don’t even know how to!
I’ve taken Elliott’s advice and used the search option but the threads are full of people who seem equally as confused and don’t know what to do or how to do

Your situation is not entirely straightforward but there are some key points that need to be understood:

1. What is the value of the stock under the hammer? Without knowing this it is hard to know basic value the business has. I can put you in touch with a valuation agent if you wish.

2. What is the total of all debts due for payment today? This is absolutely crucial.

3. The creditors are perfectly entitled to pursue the full value of their debt. Certain creditors do so as a matter of strict policy for reputational reasons as opposed to being perceived as letting someone make use of them as a bank.

4. Are all the debts in the name of the company or are some in your personal name?

When I suggested read material I was referring to my firm's website to give you the basics. There's literally hundreds of pages of information guides to help people looking for some assistance and a search facility to guide people to relevant pages.

 

[BusterBloodvessel]

Firstly, well done (I mean that completely unpatronisingly) in coming asking for help, being open and honest, and admitting you may have made some mistakes (not ALL - don't believe you've got everything wrong).

There are more qualified people than me on here on the business side of things but could I make two points regarding the business;

1. You have most likely (perhaps inadvertently!) done the right thing by forming a ltd company. Assuming you signed no personal guarantees, they can only come after whatever assets the business has left. They can't come after you personally.

2. You seem to be getting confused about the stock in the third shop. If this was bought by the limited company, as you suggest, then it's entirely irrelevant where it sits. First shop, second shop, third shop, a random warehouse, your garage, whatever.... it's an asset of the company and can be sold to help pay any debts the ltd company has regardless of whether those debts are related to the first units or the third one. You seem to think that stock is "stuck" related to the third shop - it isn't.

Now, on the more personal and mental health side of things;

You have to accept that the business is gone. You DON'T have to accept, or believe, that you're a failure. You don't have to worry about what people will think of you, and if they will see you as a failure - they WON'T! Maybe this will help, a thread from myself when I closed our shop;

The end of the road for my business

First of all can I start this by saying I'm not even sure why I'm writing this. Perhaps just a cathartic exercise and any comments or thoughts from anyone that's been in the same position might be nice I guess. I'm closing my business. I'm giving up, walking away, and turning my back on it. I...

www.ukbusinessforums.co.uk

Not only were the replies on there fully supportive, but people were in real life too. Our shop was right in the heart of where I live, all the regulars in my local pub knew it was mine and would always ask about it, how it was going etc. I dreaded telling them when it was closed, and do you know what - not ONE of them had a bad word to say. They had nothing but praise for giving it a go, sympathy and understanding for our situation, and well-wishes for the future and perhaps trying again one day.

I can tell you that 2 1/2 years on, from being in a similar position to you with constant worry about every aspect of the debt building up and not wanting to bite the bullet and pull the plug.... mentally, and physically, I am so much better. In fact, at the end of this month month I will pay the final repayment on a loan we had with some friends and family. And I'm celebrating that moment with a short 5 day break in the sun with some friends - something i didn't do in the 4 years we had the business! It will be bittersweet, but I can draw a line through something that was an experience, that I tried, had some success with and now think that I didn't fail at - things simply conspired against me and I made a difficult decision, but the right decision.

Regarding going for walks to think - i know EXACTLY where you are coming from with overthinking on your own. I went through a terrible period (I lost not only the business but broke up with my partner which destroyed me) and I tried this on the advice of friends. And I used to then see them and say "what's the f*cking point, it's meant to clear my head and all I did was spend 2 hours walking around and thinking about nothing but the mess I was in". Until someone said to me..... "THAT'S THE POINT!!". You might not realise it but you are actually using that time to process things, to go over them, to let your brain deal with them and to let it work out the right conclusions and figure out, perhaps almost subconsciously, what you need to do. You do that wandering through the countryside with no other distractions and it's a way of processing things. To this day now whenever I am stressed or worked up I grab the dogs lead and we set off plodding for a walk. I end up wrapped up thinking through things but I know that ultimately it's helping my brain process them.


I sincerely wish you the best of luck and I have no doubt that in time you will look back on this as a tough period, but almost certainly an experience that challenged you and made you more resilient for the future. And perhaps, down the line, you'll be in a position to go again but be much better armed with the right knowledge, ideas and resource to do things differently.

 

[Lisa Thomas]

I haven't read all the replies so apologies if I am repeating something. You need to sell the stock (assuming it's free of ROT) and see if you have enough money to liquidate. Failing which then look at dissolution. Happy to chat this all through with you. Feel free to dm me.

Another point to consider is whether you owe the company any money back for drawing a directors loan account.

 

[Alice Cooper]

Hi all
Thank you all so much for your wonderful responses

I may have no option but to go with the SpongeBob route

I absolutely appreciate that the insolvency practitioners among us will frown upon this but please understand that Im in no position to sell stocks to liquidate

It’s caused me that much mental distress that I need to do something now

I know what you’re thinking

“ you think you’re stressed now, not doing things the correct way will make you feel even worse”
Yes I absolutely a million percent understand the comment

But I’m not mentally able to take anymore of this

I woke up this morning crying and shaking with anxiety

Some of you will be thinking why?
And that’s because you’ve been here before, walked away and nothing perhaps came of it - but this is all new to me and it’s absolutely horrifying

The stock value will not cover liquidation at all

What I need to know please, and this is on a serious note as this is the only way I can proceed is

If I leave stocks in shop but not trade, what will come of it ? ( I can prove I’m not trading as no income )

If I walk away what do I do about the next set of accounts due?
If I file them then the compulsory strike off with take even longer

Can I file the accounts ( I made a loss ) and continue filing, showing no trade ?

I know I cannot sit dormant as I have debts

If I don’t file accounts, then what?

Has anyone actually been prosecuted ?

In the event that I get letters from companies house, where will they be going if I’ve left the shops and if I don’t respond, what happens ???

You will possibly assume it’s the wrong way to go about it, I know you will, but much like other posts I’ve read similar to mine, I honestly cannot go on any longer

I woke up this morning and I decided enough was enough, I need to move on - but guys, I don’t know where to start.

If you are against the SpongeBob plan, I thank you for your input and it’s been noted and is appreciated

If you’ve successfully managed to complete the SpongeBob process, please, please guide me in the right direction

One thing is for sure - if I ever go into business again, I sure as hell won’t be going without a plan

Thank you once again everyone, your comments have been really very helpful and have been a big help during a time where I feel I’m stuck in such a horribly dark place

Look forward to hearing from you
Have a wonderful week ahead xx

 

[tony84]

Does your accountant charge for every bit of advice or can you pick up the phone to them and pick their brains without it costing?

If you can speak to your accountant do it.

Do you have any personal guarantees with your creditors?

 

[Mark T Jones]

Hi all
Thank you all so much for your wonderful responses

I may have no option but to go with the SpongeBob route

I absolutely appreciate that the insolvency practitioners among us will frown upon this but please understand that Im in no position to sell stocks to liquidate

It’s caused me that much mental distress that I need to do something now

I know what you’re thinking

“ you think you’re stressed now, not doing things the correct way will make you feel even worse”
Yes I absolutely a million percent understand the comment

But I’m not mentally able to take anymore of this

I woke up this morning crying and shaking with anxiety

Some of you will be thinking why?
And that’s because you’ve been here before, walked away and nothing perhaps came of it - but this is all new to me and it’s absolutely horrifying

The stock value will not cover liquidation at all

What I need to know please, and this is on a serious note as this is the only way I can proceed is

If I leave stocks in shop but not trade, what will come of it ? ( I can prove I’m not trading as no income )

If I walk away what do I do about the next set of accounts due?
If I file them then the compulsory strike off with take even longer

Can I file the accounts ( I made a loss ) and continue filing, showing no trade ?

I know I cannot sit dormant as I have debts

If I don’t file accounts, then what?

Has anyone actually been prosecuted ?

In the event that I get letters from companies house, where will they be going if I’ve left the shops and if I don’t respond, what happens ???

You will possibly assume it’s the wrong way to go about it, I know you will, but much like other posts I’ve read similar to mine, I honestly cannot go on any longer

I woke up this morning and I decided enough was enough, I need to move on - but guys, I don’t know where to start.

If you are against the SpongeBob plan, I thank you for your input and it’s been noted and is appreciated

If you’ve successfully managed to complete the SpongeBob process, please, please guide me in the right direction

One thing is for sure - if I ever go into business again, I sure as hell won’t be going without a plan

Thank you once again everyone, your comments have been really very helpful and have been a big help during a time where I feel I’m stuck in such a horribly dark place

Look forward to hearing from you
Have a wonderful week ahead xx

I don't think anybody is against the Spongebob Plan, some of us are against it being abused, which it clearly won't be here.

I can have sympathy if not absolute empathy with your situation, but would reiterate the importance of being absolutely clear about what is 'you' and what is the limited company. Without that, you can't use any process properly.

Above all, you might be pleasantly surprised at how little comes back to you...

 

[Alice Cooper]

I don't think anybody is against the Spongebob Plan, some of us are against it being abused, which it clearly won't be here.

I can have sympathy if not absolute empathy with your situation, but would reiterate the importance of being absolutely clear about what is 'you' and what is the limited company. Without that, you can't use any process properly.

Above all, you might be pleasantly surprised at how little comes back to you...

Everything I got in terms of invoices all say the company name
I have never read of any personal guarantee

My suppliers only consisted of a few, so it wasn’t big business by any means - I dealt with the same few people and one of the creditors specified that they only dealt with ltd company’s, so with that in mind I don’t think any such guarantee was on that debt eirher

to be clear
The main debts all came to the ltd company and there was no documentation or docusign signature needed for anything - meaning that I didn’t agree to a personal guarantee ?

As for my accountant - he knew I had had enough when I last went to see him as he said I wasn’t the same woman that walked in when he first met me, so he said it was evident I was tired - and that’s when he said to stop!
However, when I mentioned a friend of mine who had simply walked away from his business with absolutely no come backs, he said he despises those kinds of people because it’s almost like they’re laughing at the hard workers that “ do things properly “
I therefore can predict his response when I tell him my plan and he will likely just say “ ok? Off you go with it, I can’t advise you further “

Thank you for your understanding - definitely not abusing the SpongeBob route and I’m grateful that you’re able to see that - I wouldn’t know how to abuse it, as it’s evident I’ve got myself tangled in something I didn’t / don’t much understand xx

 

[Alice Cooper]

Just to reiterate - friend didn’t have company debts, so they just stopped filing accounts and was shut down.

When I previously asked his advice he didn’t have much input as he had no debts at all and all he said was “ I’d never do it again and if you’d have asked my advice before you did it, I’d have told you not to as well “

There’s a lot of “ I told you so” and “ should’ve listened “ coming my way …

 

[japancool]

What's the estimated value of your stock?