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mitsu8
Junior Member
272 Posts |
 Posted - 20 August 2008 : 06:20:18
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| hi im now seriously thinking of going bankrupt personally.with 55000 debts secured and unsecured.my problem is i am director of ltd company with a partner that is doing ok.not really making money but enough to pay everything.how do i go bankrupt while being a director.any advise greatly received thanks |
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John
New Member
United Kingdom
73 Posts |
Posted - 20 August 2008 : 08:54:53
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Hi
the answer is you cannot declare personal BR and remain a director I'm afraid.
Secured debts are not written off in BR anyway so I would take further advice if I were you.
If you would like to call the helpline and leave your name and contact number I would be pleased for us to have an informal chat on the phone to discuss your options. Please be aware, due to the current volume of enquiries, that it may take up to 24 hours or so to return your call.
www.Bankruptcyhelp.org.uk
0800 078 9367 |
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johns
Junior Member
United Kingdom
269 Posts |
Posted - 20 August 2008 : 15:35:12
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quote:
Originally posted by John Have you considered resigning as a director of the company prior to seeking br, depending on the bank balance at the time and company assets which personal or will look at will depend on the way forward.
Oil and water comes to mind with personal and business but structured correctly it can be done, also what is your shareholding 50- 50 if yours is greater this may cause a problem within the company.
Regards
John
Hi
the answer is you cannot declare personal BR and remain a director I'm afraid.
Secured debts are not written off in BR anyway so I would take further advice if I were you.
If you would like to call the helpline and leave your name and contact number I would be pleased for us to have an informal chat on the phone to discuss your options. Please be aware, due to the current volume of enquiries, that it may take up to 24 hours or so to return your call.
www.Bankruptcyhelp.org.uk
0800 078 9367
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mitsu8
Junior Member
272 Posts |
Posted - 21 August 2008 : 19:10:03
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| hi the shares are 50/50.we turn over about 1000000 a year.what would be involved in me resigning.would it be possible to transfer ownership to my wife.thanks |
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John
New Member
United Kingdom
73 Posts |
Posted - 21 August 2008 : 21:03:32
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Hi
as you will know annual turnover means little.
The OR would be interested in the value of the company, profit per annum, any assets, stock etc which would also determine if you could transfer your part in the business to your wife as you cannot sell or transfer undervalue.
www.Bankruptcyhelp.org.uk
0800 078 9367 |
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mitsu8
Junior Member
272 Posts |
Posted - 22 August 2008 : 16:31:13
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| hi thanks for reply.profits have been about 100000 but we have no assets.van and truck on contract hire and rent out unit.stock is very limited as well.the value of the company is hard to say because it is in construction which at the moment is being hit very hardeven though we are still doing ok.thanks |
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John
New Member
United Kingdom
73 Posts |
Posted - 22 August 2008 : 18:15:26
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Hi
the profit level is too high in order to transfer your share to a 3rd party.
As you say, the building industry is taking a hit right now like so many others so the immediate future doesn't look that promising.
Rule of thumb is a business is worth approx 6 x annual profit + any asset value. Making your 50% share worth £300K less short and long term market projection.
www.Bankruptcyhelp.org.uk
0800 078 9367 |
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johns
Junior Member
United Kingdom
269 Posts |
Posted - 22 August 2008 : 20:29:04
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Hello again is the profit margin net before taxes or gross before you and your wife take an income, i mentioned before ensure the minutes book is up to date as the ip will be working for the creditors and any misdemendours will be repoted, wed i signed ( as the biggest creditor ), approval for them to act now the table has turned and they require all sorts of info for the creditors. One of the questions will be to clarify when the directors knew the company become insolvent and the up to date minute book.
lots of other they require but i am not sure how much to go into as i think this is personal br! quote:
Originally posted by John
Hi
the profit level is too high in order to transfer your share to a 3rd party.
As you say, the building industry is taking a hit right now like so many others so the immediate future doesn't look that promising.
Rule of thumb is a business is worth approx 6 x annual profit + any asset value. Making your 50% share worth £300K less short and long term market projection.
www.Bankruptcyhelp.org.uk
0800 078 9367
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mitsu8
Junior Member
272 Posts |
Posted - 22 August 2008 : 20:48:22
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| hi yes the profits are after everything was paid including our wages etc. |
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John
New Member
United Kingdom
73 Posts |
Posted - 22 August 2008 : 21:02:43
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Hi mitsu8
If the net profit is £100K, and your 50% therefore £50K, after your regular drawings, the OR is undoubtedly going to ask where that profit is now.
www.Bankruptcyhelp.org.uk
0800 078 9367 |
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johns
Junior Member
United Kingdom
269 Posts |
Posted - 23 August 2008 : 06:43:58
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quote:
Originally posted by John
Hi mitsu8
If the net profit is £100K, and your 50% therefore £50K, after your regular drawings, the OR is undoubtedly going to ask where that profit is now.
www.Bankruptcyhelp.org.uk
0800 078 9367
Hi i adree with John but on the other side of the coin,
1 net profits of 100k
2 debt of 55k
the or and ip will both want to know why you are considering bankruptcy as the company is solvent and potetially 50k of compay dividend could come to you and clear the debt, not knowing a lot about the or but on the company side once you appoint an insolvency practitioner they do their upmost for the creditors, this in mind with the profits you should owe no creditors.
The or will take all that money if it is still their and have claim on anything above your living expenses.
Are you up to date with ni and vat. I now know as my ip contacted the or's office this week that they work quite close if it is in both their interest
Regards Johns
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mitsu8
Junior Member
272 Posts |
Posted - 23 August 2008 : 11:37:16
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| hi yes we are up to date with everything.it sounds good with our profits but cashflow is the hard part as being busy any monies that come in are paid out to our workers.to be honest the company s not my major problem now but it is the company that has me in trouble.it goes back a couple of years when we received major corporation bill we could not pay.money we had for materials paid this so i used all my cards to buy materials etc.keep thinking i will get my money back but it is not happening and cannot see that i will.i manage to pay all my stuff each month but cards are getting missed and interest is going higher than what im paying off.im bit lost about what to do as the business pays me a good wage but also is stoppingme going bankrupt and start again which i feel is my main option. |
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how do i go bankrupt while being a director
