SpongeBob Plan?

[scarletsman]

Hi all

I have been trying to save my business by making some drastic changes such as making staff redundant and changing offices etc but it is becoming even more apparent that I must admit defeat.

I have read a number of posts about the SpongeBob route, and think it is the only way for me to go.

I am a course provider.

I have a few creditors, with around 5k worth of debt, one has taken me to court in December and I am in an agreement with this company.

However, this company is also a company who I use for completing contracts with customers and I am now unable to really take more work on until paid.

So basically I am up the creek without a paddle. I can't really go to another provider as I know I am not going to pay them either so that would just be unethical.

I have a number of customers who I have taken payment for services and some are part complete, others yet to begin and some are fully paid up but they need to complete actions to finish.

I am not going to be able to complete these learners. Are they now considered creditors too?

I am unsure who I would send creditor letters to etc.

Would I need to send a letter to all customers to say I am sorry I know you have completed/part completed a course but you will no longer receive a certificate from an awarding body as I can't afford to pay them?

I really hope you can help as I am going out of my mind and have built good relationships with these clients but don't know how I can help them

 

[scarletsman]

I'll add, I have no assets, I can't pay for insolvency, etc I have exhausted avenues looking for this,

Can I also ask, I have some clients who have pre-paid for work that I can complete, can I start working with them under a self-employed basis away from the company or would that be seen as trading still?

Just trying to hide details here of what I do as I don't want customers to know. But let's say I walked dogs.
I.e. people have paid for me to walk their dogs in advance in my limited company.

Could I call them and say my limited company has ceased trading but I am happy to continue working with you?

Sorry for all the questions