who are classed as creditors

Discussion in 'Insolvency' started by LizziB, May 24, 2020.

  1. LizziB

    LizziB UKBF Newcomer Free Member

    4 0
    Hi
    It is looking that I will be in the position of now having to wind up my business as I cannot afford the fixed costs for the daily running of the business. With regards to sending out letters to inform of my winding up, do I include creditors who I have paid on a monthly direct debit of which there is no debt at present but next month will not be able to cover these payments.
     
    Posted: May 24, 2020 By: LizziB Member since: May 17, 2020
    #1
  2. Gavin Bates

    Gavin Bates UKBF Enthusiast Free Member

    668 136
    Hi

    yes, because as you have mentioned they will be creditors in due course.

    regards

    Gavin
     
    Posted: May 24, 2020 By: Gavin Bates Member since: May 9, 2016
    #2
  3. LizziB

    LizziB UKBF Newcomer Free Member

    4 0
    Hi
    How do I deal with the creditors that have been paid upfront for a full years service which expires in 2021 ie: PPL/PRS music license for the coffee shop. Can I contact them to say that I am no longer trading rather than sending a letter of Winding up the business, or are all creditors to be dealt with the same and then they amend their own records. I do not owe money to this particular service.
     
    Posted: May 25, 2020 By: LizziB Member since: May 17, 2020
    #3
  4. JEREMY HAWKE

    JEREMY HAWKE UKBF Legend Full Member

    5,035 1,681
    They are not creditors You don't owe them money
    It won't make any difference if you sent a letter although some will tell you have to inform every contact you have ever made
     
    Posted: May 25, 2020 By: JEREMY HAWKE Member since: Mar 4, 2008
    #4
  5. Mr D

    Mr D UKBF Legend Free Member

    22,971 2,765
    Its a good idea to tell them you are no longer trading. In theory then they won't chase you for renewal.
     
    Posted: May 25, 2020 By: Mr D Member since: Feb 12, 2017
    #5
  6. Gavin Bates

    Gavin Bates UKBF Enthusiast Free Member

    668 136
    As above, they are no creditor so don't need to be informed. I would however contact them to tell them you have ceased so that new bills don't start running
     
    Posted: May 25, 2020 By: Gavin Bates Member since: May 9, 2016
    #6
  7. Lisa Thomas

    Lisa Thomas UKBF Enthusiast Free Member

    3,523 448
    Be careful of the wording you use as winding up tends to imply formal Liquidation, which doesn't seem to be the case here as the Liquidator would write to the creditors for you.

    Are there any assets in the business?
     
    Posted: May 26, 2020 By: Lisa Thomas Member since: Apr 20, 2015
    #7