Striking off a company with debt

Discussion in 'Insolvency' started by jashers, Mar 8, 2018.

  1. jashers

    jashers UKBF Newcomer Free Member

    3 0
    Hi all,

    I am new here but just wanted a bit of help to clarify a few things as I have been getting a few worrying letters...

    My and my husband owned an online toy shop for the past 7 years and we made a profit for only 1 year, any way the long and short of it is we decided we needed to close the business.

    We ceased trading on the 1st February and we don't have any assets in the company so we want to get a company strike off, we owe some suppliers around £10,000 in total and that is between about 4 suppliers and we also owe a vat bill of £11,000. We do have overdrafts on our business accounts of around £20,000 that are guarenteed personally and some credit cards....... I know I know what a mess to get into but we are in it now and are stressing to get out! We also have 4 young children to add to the stress of keeping a roof over our heads and food on the table

    We have been getting some advice from our accountant and also debt management companies but I am not clear on a few things.

    We own our own house (mortgaged) and we also have another property (mortgaged) We will sell our other property to try and get rid of some of the bank debts that are personally guarenteed by us but that will take a while to go through and only really sort out some of the debt

    It looks like we will have to go through an IVA to sort a lot of it out but will we be able to strike off the company with it owing suppliers and HMRC? We have had an email from an insolvency specialist who is telling us that we can't strike off a company if there is outstanding debts and we should try to claim for redundancy?

    We have sent off the standard letter telling everyone of our position and asking them if they want to start winding up proceedings. We have had 1 supplier who has passed our details onto their debt collection company demanding that we pay the £6000 that we owe them.

    Can someone please help clarify the main points

    1. Can we strike off the company while owing suppliers
    2. Will I get people knocking on my door trying to take my possesions
     
    Posted: Mar 8, 2018 By: jashers Member since: Mar 8, 2018
    #1
  2. Lisa Thomas

    Lisa Thomas UKBF Enthusiast Free Member

    2,443 295
    1. Is the insolvency specialist a licensed IP?

    I am unsure why they are telling you this as it is possible - see here for the procedure:

    https://www.gov.uk/government/publications/company-strike-off-dissolution-and-restoration

    Bear in mind however that HMRC will likely object if final accounts and returns have not been filed and/or there are outstanding director loan accounts due to the Company.

    In which case keep trying to strike it off until it slips through the net or let them liquidate.

    I'm not sure what the IP means about you trying to claim for redundancy? From who? If they mean from the government you can only do this if the Company enters a formal insolvency procedure, such as Liquidation - is this what they are suggesting?

    2. Unlikely as it is the Company, at this stage, that owes the debts (unless your home address is the registered office address). The creditors you have given PG's to could get CCJs and then send bailiffs around but you will get notice of both of these steps and IF you have an IVA in place that will prevent it.

    Consider whether it is really necessary to sell the property for you to deal with the £20k of PG's, this might be avoidable depending on the circumstances.
     
    Posted: Mar 8, 2018 By: Lisa Thomas Member since: Apr 20, 2015
    #2
  3. jashers

    jashers UKBF Newcomer Free Member

    3 0
    Thanks for the reply, I am assuming that he is a licenced IP, my husband has been dealing with him but the warning bells have been ringing with him as I think he is just after a cut himself (seems crazy when there is no money there).

    Yes he was trying to get us to go down the insolvency route to liquidate but that costs money so he was advising that we claim for redundancy to pay for it but we have no assets so we don't see that there is any point in doing this. I think he was saying that it was easier to get a strike off if we went down that route

    None of our suppliers have PGs its only the banks that have those and that is why we will be selling a house to clear them.

    Our home office address is also our registered business address

    What happens with the debt collection letter from our supplier? We have informed them of what is happening and sent the standard letter regarding winding up proceedings but they just keep emailing and sending out the same letters
     
    Posted: Mar 8, 2018 By: jashers Member since: Mar 8, 2018
    #3
  4. Mr D

    Mr D UKBF Legend Free Member

    10,510 1,103
    The IP always wants paying, if cannot afford an IP that's when people use the spongebob plan.

    In your case its worth a look.

    The debt collector - ring them and tell them there's no assets and business is not trading. They will possibly ask for payment on account, refuse as you are not liable for business debts. Invite them to wind the business up - they probably won't pay to do that when there's no chance of getting anything.
    The PG ones you are liable for. May be worth waiting until after the company is dissolved to clear those debts otherwise you are preferring one creditor over another (bad thing).
     
    Posted: Mar 8, 2018 By: Mr D Member since: Feb 12, 2017
    #4
  5. Gavin Bates

    Gavin Bates UKBF Regular Free Member

    466 92
    Hi

    Lisa has given you very good advice above, which I agree with above.

    You can only claim redundancy in a liquidation process and then it can only be based on your PAYE earnings.

    It is difficult if the registered office is also your home because if a creditor sends a bailiff then it will be that address but they can only distrain on Company goods.

    And finally, just keep sending the letter to those that keep writing.

    Regards

    Gavin
     
    Posted: Mar 8, 2018 By: Gavin Bates Member since: May 9, 2016
    #5
  6. jashers

    jashers UKBF Newcomer Free Member

    3 0
    Thanks everyone for the advice, thats made me feel a lot better and makes more sense.
     
    Posted: Mar 8, 2018 By: jashers Member since: Mar 8, 2018
    #6
  7. Lisa Thomas

    Lisa Thomas UKBF Enthusiast Free Member

    2,443 295
    Best of luck.

    Please consider all options and take proper advice from a licensed Insolvency Practitioner before selling the house to pay the bank PG.
     
    Posted: Mar 8, 2018 By: Lisa Thomas Member since: Apr 20, 2015
    #7