Just been served

[wrighty79]

Hi all. Just looking for a bit of advice. Had a knock at the door this morning from a bailiff with a letter for me. Opened it up and it was a statutory demand for bankruptcy from a dca. I was quite happy with this as I have been considering going bankrupt for a while as I has about £20k of debt and next to no income.

 

Anyway. I also run my own Ltd company from home which I am about to cease trading as I have been offered a job with decent money. This company also has debt of about £2k to banks and the tax man.

 

My main question is, if I go along with the statutory demand and go personally bankrupt will this also wipe out the business debt as I am the sole shareholder and will be disqualified from being a director this killing off the Ltd company as I am the sole owner\ employee\tea boy. Or will it be better for me make myself bankrupt and let my business creditors wind up the company for me.

 

Hope this makes sense.

[palomino]

No. The limited company is an entirely separate entity.

If you are made bankrupt you will have to find an alternative director or wind the company up.

 

Be aware that a Statutory Demand allows the claimant to petition for your bankruptcy. Such a petition is not obligatory and may not eventuate.

Creditor petitions are expensive (for the creditor) and are not often proceeded with for this reason. Do you own your home? Is there any equity in it? Do you have a family?

[PGH7447]

Palomino speaks wise words here, think log and hard about this before jumping for joy that someone will pay to make you bankrupt, £20k is not a lot in the grand scheme of things,

[wrighty79]

Thanks for your quick replys. No I don't own my own home and have no assets of real value. I'm married with 1 child. I was going to wind the company up myself anyway. This is the 3rd notice I have had off this debt collection company but the 1st one that has been hand delivered. I was hoping that this meant that they were serious this time. I might just declare myself bankrupt anyway. Is there any difference in the after effects of being made bankrupt or doing it myself.

[PGH7447]

who is the dca and what is the debt, there is more than one way to see them off

[wrighty79]

The dca is capquest and the debt to them is £2500. I know it's not a lot but like I said the total debt to various different companies is about £20k which when you are bringing in £500 a month and trying to support a family is a hell of a lot and theres not much hope of ever being able to pay it back.

[spamheed]

If you declare yourself your interview with the OR can take place over the phone and without implying that there is less dilligence with either, a third party bankruptcy requires the OR to take a more thorough approach.

 

I agree with the other advice, I wouldn't hold your breath waiting for a DCA to make you bankrupt, unless you clearly have assets and property which would guarantee a return for the creditor it simply wont happen

[PGH7447]

and do crappyq have the right to collect the said debt, ie have you verified they have the correct paperwork to support their claim, and if you only have limited funds and they do have the correct paperwork then you pay them a £1 a month

[wrighty79]

Cant say i've checked their right to collect the debt. I just assumed. I'd rather just go bankrupt and start again rather than having all the debts hanging over me forever and day. Think i'll just declare myself bankrupt. The next challenge is raising the £400.

[Joijo]

You will need to Liquidate the company as a seperate issue.

 

This can be done by appointing a liquidator (anyone can be a liquidator as long as they are not disquialified from being one).

 

I have attached the web address that will help you with this

Liquidation and Insolvency - GPO8

 

Another way is to Dissolve the company by filing the correct form (http://www.companieshouse.gov.uk/about/gbhtml/gp4.shtml ) and this will not peanlise you as a director.

 

Before you declare yourself bankrupt please talk to someone that is close to you. You need to be able to talk through the pros and cons and then you will be able to make the best decision

[PGH7447]

OK good luck then