hi i owe some suppliers 24000 for end of oct.i have a ltd co.received letter today demanding payment or they will take it further.would it still take them a while to get everything in place for collecion or even br.any advice would be greatly received.i am actually able to pay but not till about 15th deceber.
Hey mitsu, I don't think they would have time to issue any sort of proceedings against you between now and the 15th. Just keep them informed. I'm sure they would much rather have their money on full in a couple of weeks.
I agree with Viki. Write to them and inform them of the date you will be able to pay. I am sure they will be happy to wait until then.
Sharing from experiences of dealing with debt
The greatness of a man is not in how much wealth he acquires, but in his integrity and his ability to affect those around him positively.
Bob Marley. http://kallis3.blogs.iva.co.uk
Hi Mitsu.
The others are right in that nothing could be done against you before 15 Dec and in the current climate your creditors will probably be delighted that you are able to pay at all. However, if you are playing catch up with creditors and never actually getting straight, it may be worth looking at the cash flow of the business. There is no point in paying these creditors in December with money that should have been saved towards the next VAT, PAYE bill etc for when these monies fall due you are back to square one.
I am also unsure if the ltd company or yourself owe the money but regardless it is always a chat with an IP before things get out of hand. As stated on the Forum, most IPs will have a free no obligation interview. It may put your mind at rest or avoid bigger problems later on.
thanks for advice.one problem i might have is if the co dont get paid and so i cant pay supplier then eventually they will br us.although hopefully this wont happen what i am worried about is that we have still taken our dividends because still got family to feed etc.what could happen to us thanks
Since it is a limited company you should be paid a salary and as a shareholder you will receive dividends from the profits. It appears that the company is still making money but has temporary cash flow problems otherwise it should not declare and pay out a dividend. If the problems of the company are more severe than a temporary shortage of funds it is more important that you seek help.
Suppliers would not be able to pursue you personally unless you have signed a personal guarantee or are found in breach of your duties as a director. In the event of the company being wound up you can walk away and find employment elsewhere or commence self employment.
hi thanks i dont think we have done anything wrong.if we are to be insolvent ,do we actually cease on the day that we would meet with an advisor.also dont think we have personal guarantees but if we have that obviously means they can come after us which would mean i would have to go br
If your business is fine there is no need to close it down. If you only owe a few suppliers they can wait for their money. You yourself must know if the business is going well and by talking to an advisor it does not mean that you have to close it down.
I am sorry if I worried you but speaking to someone does no harm at all. Contact any IP firm on this forum on a no names basis and we will give as much advice as we can.
