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frank2009
Starting Member
United Kingdom
3 Posts |
 Posted - 20 July 2009 : 08:08:03
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Hi everyone, I'm here in quite a pickle and was wondering what to do...
I've 2 companies, totally diffent, one is a laundry service, and the other is a chickenshop.. i've been running them for the last 2 years, but business is not going great and i've on the laundry service about 20k loan outstanding, and the other one a 25k loan outstanding, they are both LTD, with me being the sole director/shareholder..
selling everything might cover about 5k in each shop, leaving me still with about 15k/20k debt outstanding..
and I also own my own house with a surplus of 100k, but do not want to loose my house over this problem...
do I qualify for bankruptcy for both companies? and if so, do I end up loosing my house in a court in order to pay the outstanding debts totalling 35k ?
or does the bankrupty gives me a bad credit for the next 5/10 years?
could someone please tell me what will happen when i file for bankruptcy for both companies? and what will happen If i file for bankrupty for just one? |
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debtinfo
forum expert
2826 Posts |
Posted - 20 July 2009 : 08:22:20
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| Firstly bankruptcy is for intividuals not ltd companies which are both seperate legal entities. Ltd Companies can be liquidated. to help a little info is needed. are the loans in your name of the company name. Have you signed any personal gaurantees to take on the debts of the company. finally do the companies have any legal charges over the property |
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Reviva UK
Advanced Member
United Kingdom
2452 Posts |
Posted - 20 July 2009 : 08:36:40
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The Limited company is a legal entity in its own right and is almost the same as an individual. It it gets a bad credit history it does not necessarily impact on you.
As debtinfo says the most important thing here is to find out if you have either a personal guarantee on the company loans or if they are secured in some way over your house.
From what you say I suspect there are insufficient funds for a formal liquidation as a distressed sale will invariably produce a significantly lower value.
There are otherways of closing down the business but you will need professional advice to review all of your options and find a path forward.
Paul Johns
Bankruptcy Specialists
Reviva UK
www.revivauk.com
Real People ..... Real Debt Solutions |
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frank2009
Starting Member
United Kingdom
3 Posts |
Posted - 20 July 2009 : 12:42:40
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Hi,
I appreciate your input.
to add to my initial post:
the debts are on the companie, no personal guarantee, and no charges on the property.
What do you mean by?:
"From what you say I suspect there are insufficient funds for a formal liquidation as a distressed sale will invariably produce a significantly lower value.
"
do you mean I do not have enough debt to qualify for liquidation? is there a minimum ? |
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Reviva UK
Advanced Member
United Kingdom
2452 Posts |
Posted - 21 July 2009 : 08:30:01
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Hi
sorry for the delay I was on my travels yesterday - 500 miles.
Firstly if there are no personal guarantees then this is a good thing for you. The debts would fall squarely in the Ltd company. ( worth double checking the leases as well just in case ).
Generally to go through a formal liquidation will cost between 5k upwards for each company and from what you have said i really suspect that the asset value is significantly lower.
I have just helped a company close down that was in a CVA ( Company Voluntary Arrangement ) with around £28,000 or stock & asset value. When the CVA failed the company running the CVA arranged to have all the assets valued and sold. They received £2800, of which the agent selling charged £2350.
That is when they phoned me.
There are ways to conclude the company properly and account for assets , liabilities and include the creditors properly.
Paul Johns
Bankruptcy Specialists
Reviva UK
www.revivauk.com
Real People ..... Real Debt Solutions |
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frank2009
Starting Member
United Kingdom
3 Posts |
Posted - 22 July 2009 : 18:49:57
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Hi,
Ok what would happen if i let it be taken to court, and come to a arrangement through court, with the court deciding the repayment arrangements?
p.s. I'm in receving of jobseekers allowance again as of last week. |
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could someone please tell me what will happen
