Ongoing insolvency - how long?

[lbsouth85]

So my company entered into liquidation in Spring 2022 with debts outstanding of just over 100k including a BBL. In the lead up to my company entering liquidation I was not paying my own salary and actually invested further money myself just to try and get back on the straight and narrow. I ended up also being a creditor in the end.

I completed all questionnaires and paperwork sent to me by the IP, paid them their fee, handed over all the accounts and paperwork etc. Since then it has been radio silence.

They added a liquidators statement on companies house last year in which it states "the liquidators review of the bank statements identified some transactions that require clarification, and the liquidator is currently waiting on further financial information"

Following this I contacted the IP to ask what transactions and whether we could provide them the information and they just responded saying they are under review and they will get back to us shortly. This was nearly 6 months ago.

Is this normal?

Since the liquidation I have sought to move forward with my life, I had to enter into personal insolvency but have now gained employment in a totally different field etc

I know deep down I have done nothing wrong and did everything in my power to keep my company going, but keep hearing stories of people being prosecuted for BBL misuse etc. I just keep worrying that at some point the IP is either going to hit me with a huge bill or something.

How long can the liquidation go on for? Should I be receiving any sort of updates other than the yearly report added to companies house?

For reference my company wasn't a huge company nor did it have tons of assets etc.

 

[Elliot Green]

Not that unusual. It seems the Liquidator's investigations are not complete. You should get an annual report no later than 14 months after the anniversary of the Liquidator's appointment each year. That is often all that is provided but you can ask for a status update if you wish.

Liquidations can go on for years in some cases.

Difficult to see how aa Director who has not breached their duty gets a huge bill save where their Director loan account is overdrawn.

 

[lbsouth85]

Not that unusual. It seems the Liquidator's investigations are not complete. You should get an annual report no later than 14 months after the anniversary of the Liquidator's appointment each year. That is often all that is provided but you can ask for a status update if you wish.

Liquidations can go on for years in some cases.

Difficult to see how aa Director who has not breached their duty gets a huge bill save where their Director loan account is overdrawn.

Thank-you for your response, i think it’s just about peace of mind really as I do worry about the BBL. I will feel so much better when it’s done and dusted.

The more it drags out and I move on with my life it can be hard to remember all the finer details of each transaction etc and I just worry about remembering everything if I am asked.

I have just had a look over the questionnaires I submitted at the time again for peace of mind and 100% the DLA was not overdrawn. I was actually owed around 24k from the company by the end in unpaid salary. I had paid my tax and NI just was not withdrawing the salary as was trying to keep the business a float with the intention of taking it out when things improved.

 

[Lisa Thomas]

It is odd that nothing has happened in 6 months. This sounds slow, but then again maybe something has happened in the background you don't know about.

If you're interested give them a nudge and ask for a further update.

 

[lbsouth85]

Still no updates!! They just seem to be really slow and don’t tell us anything.

Can this potentially just drag out for years and years and years?

 

[Elliot Green]

It can continue for sometime.

 

[Lisa Thomas]

They have to file annual reports within 2 months of each anniversary so if you are not willing to chase them for an update, you could check Companies House.

 

[Porky]

@lbsouth85
Try not to worry and stress over this, its a process which will ultimately close
Nothing wrong in you asking the IP how long they estimate it would be before the company is dissolved but as @Lisa Thomas has pointed out a report update will be filed at companies house within two months of the anniversary in any event.
You just need to move on and forget about it for now. Take care now,