Small Ltd Business - can't strike-off with BBL

[Callimac]

Hi. Please can you advise what I do next. Our small LTD business has ceased now for over 6 months (after our main supplier went bankrupt following covid). We sent @Spongebob's Strike-off notice template letter to the HSBC, but strike-off was stopped because of the BBL. After a long interview with the HSBC (who were lovely), they know we cannot pay back the £7K overdraft and have now closed our account. They have passed the BBL to their recovery team (amount £2100). This is the only debt the company has. The company has no assets. The Bounce Back loan team have said we cannot strike the LTD company off as they will always object. I'm not sure what to do now as I'm guessing a debt recovery company will be in touch for the HSBC overdraft money we owe, and the BBL recovery team are calling back to see how I can pay them back, even though the Ltd company has stopped trading months ago. Any advise would be very gratefully received as I don't know how to pay all this back when I have no money.

 

[Lisa Thomas]

You just have to keep trying to file the DS01, or leave it in limbo until a creditor liquidates it, or Companies House strikes it off.

FYI You might be in for a long wait!

 

[Callimac]

You just have to keep trying to file the DS01, or leave it in limbo until a creditor liquidates it, or Companies House strikes it off.

FYI You might be in for a long wait!

Thank you for your reply. I will try again .. and I'm happy to wait for CH to strike it off .. but when the BBL team and other debt people ring to start a repayment plan, what do I do?

 

[IanSuth]

Thank you for your reply. I will try again .. and I'm happy to wait for CH to strike it off .. but when the BBL team and other debt people ring to start a repayment plan, what do I do?

Did you have personal guarantees - those are the ONLY debts they can chase from you - the other debts are company debts and the company is not you.

Def the BBL is a company debt of the LTD not a personal debt of Callimac - so just politely tell them to write to the company not you but that it is no longer trading

 

[Newchodge]

Thank you for your reply. I will try again .. and I'm happy to wait for CH to strike it off .. but when the BBL team and other debt people ring to start a repayment plan, what do I do?

Ignore the ex-company and any debt recovery efforts. Get on with your life and leave them to chase round in circles achieving nothing.

 

[Callimac]

Did you have personal guarantees - those are the ONLY debts they can chase from you - the other debts are company debts and the company is not you.

Def the BBL is a company debt of the LTD not a personal debt of Callimac - so just politely tell them to write to the company not you but that it is no longer trading

Thank you Ian. No personal guarantees. I've just called the BBL recovery team. She was very nice. She said she will put the account on hold for 6 months and in that time the strike off may have gone through. If not, she can always put it on hold for another 6 months as we try again. Thanks for your help. I guess I just stay the same to the third party company HSBC said they will use to collect the overdraft funds?

 

[Mark James]

Yes, you say exactly the same thing. Bottom line is the debt is not yours it’s the companies and the company has ceased trading. No personal guarantees so your in the clear. Just get on with your life with a clear mind.

 

[Callimac]

Yes, you say exactly the same thing. Bottom line is the debt is not yours it’s the companies and the company has ceased trading. No personal guarantees so your in the clear. Just get on with your life with a clear mind.

Thank you. That's reassuring

 

[Mark James]

And if they keep chasing you after that it’s harassment so let them know that too.

 

[Callimac]

And if they keep chasing you after that it’s harassment so let them know that too.

Thank you .. I will say that to them.

 

[Lisa Thomas]

Have you given a personal guarantee for the overdraft?

 

[skaracay]

I am facing a problem with my business. We have been running it for over 4 years, but due to the drastic reduction in the construction market, we have had to cancel jobs and have stopped commercial activity for now.

We filled out a DS01 form to close our company in CH, but after two months we received an objection. Unfortunately, we don't have any property that we can sell to settle our debts. I have borrowed some money from my family to pay off some of my debts, but now they are unable to lend me any more money. I am wondering if I can apply for bankruptcy myself? What should I do in this situation?

 

[Scalloway]

I am wondering if I can apply for bankruptcy myself?

Why? Do you owe money to the company?

The debts belong to the company, not you personally.

 

[skaracay]

Why? Do you owe money to the company?

The debts belong to the company, not you personally.

No, I haven't debt any money from the company. I want to pay my debts so that my credit score doesn't deteriorate.

 

[Newchodge]

No, I haven't debt any money from the company. I want to pay my debts so that my credit score doesn't deteriorate.

How much do you owe in personal debts, NOT how much does the copmany owe.

 

[skaracay]

How much do you owe in personal debts, NOT how much does the copmany owe.

No no, I have not personal debt. Just company’s debt.

 

[Newchodge]

No no, I have not personal debt. Just company’s debt.

Then you have no debt. Why would you apply for bankruptcy - that won't safeguard your credit rating, it would destroy it. However you cannot be bankrupt if you have no debt.

 

[skaracay]

Then you have no debt. Why would you apply for bankruptcy - that won't safeguard your credit rating, it would destroy it. However you cannot be bankrupt if you have no debt.

My company has debt.

 

[Newchodge]

My company has debt.

But, unless you gave a personal guarantee, the debt is not yours.

 

[skaracay]

But, unless you gave a personal guarantee, the debt is not yours.

If I go bankruptcy for my company, will my credit score be affected? I reply to those who sent letters for debt that I have stopped my commercial activities.

 

[Newchodge]

If I go bankruptcy for my company, will my credit score be affected? I reply to those who sent letters for debt that I have stopped my commercial activities.

You cannot go bankrupt if you have no debt. If you had debt and went bankrupt it would destroy your credit rating.

Your reply to those who send YOUR COMPANY debt letters should be "XYZ Ltd has ceased trading and has no assets".

 

[Lisa Thomas]

You seem to be very confused.

You and the company are separate legal entities. You are not personally liable for the company's debts unless you have given personal guarantees, or committed misconduct.

Bankruptcy is a procedure for individuals only so doesn't apply to the Company. If you were to go personally bankrupt, that would not deal with the company's position.

I suspect you might need to consider liquidation, or dissolution of the company as an option to deal with its insolvency.

Have a look here:

The different options for insolvent limited companies with Covid related and other debts

In this jampacked video, I explore the following options available for insolvent limited companies: Compulsory Liquidation, Creditors Voluntary Liquidation (...

youtu.be