Being brutally honest with myself I am in a fix

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paul833
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by paul833 » Tue Dec 12, 2017 10:08 pm
Being brutally honest with myself I am in a fix. I have personal debts of circa £15k in various different formats. I have a small Ltd business that I have funded for a little over 8 months that was going well and in reasonable profit but a run of invoices were not paid and £40k that was due is never going to arrive. I have put in £25k and not taken a penny, no pay for 6 months and no dividends at all, foolishly banking on the payments being made. The company itself owes £10k to the bank, £1200 to the taxman and a few quid to the accountant and obviously anything I would have returned to myself. There is no come back from this and I am effectively desperate but it could be worse. There are no assets as I sold them on to pay the staff before letting them go last week.

I know I have been foolish and please dont tell me how daft I have been, I have got myself into this pickle and I want to get out of it in the best possible way if you can throw me some guidance. The advice of a friend has been to enter into an IVA for myself and my partner and then apply to have the company struck off with companies house. The personal debt is split £11k to £4k between myself and my other half. From a business point, it is solely down to me as Director. I am grateful for any direction r if you need any other facts then please ask.
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Foggy
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by Foggy » Wed Dec 13, 2017 7:57 am
You haven't been "daft" at all -- just a run of bad luck which you have tried to manage as best you could.

I would suggest you have a chat with a couple of firms (have a look around the forum for experiences with different companies) to discuss the way forward. You need to chat to at least a couple to see who you get a "feel" for -- it is a long relationship. The first phone call is the hardest -- but well worth the relief it can give.
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Lisa Thomas
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by Lisa Thomas » Wed Dec 13, 2017 3:04 pm
Dissolution is probably the best option if the company has no assets. Hopefully you got a valuaiton and sold them at market value?

HMRC are likely to object to dissolution if final returns haven't been filed.

More detail can be found here:

https://www.gov.uk/government/publicati ... estoration

It is worth you exploring whether an IVA might be viable - but consider all options including a debt relief order and Bankruptcy. I'd be happy to chat in more detail.

£4k is too small a debt to go bankrupt for and possibly not worth doing an IVA for either. Perhaps your partner could consider a debt management plan instead of an IVA.
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kallis3
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by kallis3 » Wed Dec 13, 2017 3:23 pm
With the amount owed business wise, as well as the rest, I don't think a DRO is an option.
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luluj
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by luluj » Wed Dec 13, 2017 4:27 pm
Nobody is here to criticise .... whats done is done and we now want to support you and help you identify a way forward that will support a new beginning.
Take some professional advice as suggested and see which debt solution is right for you.
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paul833
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by paul833 » Thu Dec 14, 2017 11:26 am
Many thanks for taking the time to respond. I was beginning to feel the world closing in around me.

I am going to action the thoughts you have given me and close down the business, whilst setting up an IVA. Thank you again.
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Lisa Thomas
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by Lisa Thomas » Thu Dec 14, 2017 2:48 pm
kallis3 wrote:
With the amount owed business wise, as well as the rest, I don't think a DRO is an option.


Kallis unless he has given PG's for the Limited Company's debts then the OP is not liable so seems his pwersonal debts only total £15k and may be included in a DRO... unless I have missed something?
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Foggy
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by Foggy » Thu Dec 14, 2017 3:18 pm
As with many of our enquiries, we only get part of the picture and I would suggest a full and frank chat with a couple of firms direct would be on the cards.
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paul833
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by paul833 » Thu Dec 14, 2017 4:05 pm
Lisa Thomas wrote:
kallis3 wrote:
With the amount owed business wise, as well as the rest, I don't think a DRO is an option.


Kallis unless he has given PG's for the Limited Company's debts then the OP is not liable so seems his pwersonal debts only total £15k and may be included in a DRO... unless I have missed something?


Sorry, pg's and OP?
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Foggy
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by Foggy » Thu Dec 14, 2017 4:26 pm
paul833 wrote:
Lisa Thomas wrote:
kallis3 wrote:
With the amount owed business wise, as well as the rest, I don't think a DRO is an option.


Kallis unless he has given PG's for the Limited Company's debts then the OP is not liable so seems his pwersonal debts only total £15k and may be included in a DRO... unless I have missed something?


Sorry, pg's and OP?



Personal Guarantees (where a Director guarantees repayment of a debt him or her self).

OP is the Original Poster (person who opened the thread and posted the original query).
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