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Business Bankruptcy
Hi All,
I am posting on behalf of a friend. I have received excellent advice for my own debts from you all and hope someone can give me some advice on this issue. I am sorry for the long post.
Basically,they had a business with a business partner. The business ceased trading sometime last year and has debts of between £16-£20,000. This includes supplies, PAYE for some employees, (Only informed of by the accountant AFTER the business closed), vat, accountant fees (company and personal I think) and their own personal self assessment tax. Their SE was around £9000 on account but have managed to pay off about £5000. They sold the company vehicle to pay off the company bank account. The partnership did not end amicably and the other partner has done a midnight flit...
They came to me to see if I could help sort out the mess they have got into. I contacted a Debt Management Company and we had a meeting with the man. He said that Bankruptcy was the best option as both partners were equally liable for the company debts. If one didn't pay the other would have to. Then he said, 'to act on their behalf, fill in the forms, attend court etc it would cost £750'. This seems an excessive cost to me, especially as they already have a huge amount of debt and it seems that it costs £750 to go bankrupt in the first place?
I have searched the net for information on business debt and bankruptcy but it seems too complicated to me, which is why I have asked you for advice.
Now, the worst part of this is, they had to declare themselves bankrupt almost 5 years ago, (completely different circumstances). I have a feeling that this will be frowned upon by the courts and the official receiver and I do feel that some sound advice is very much needed in this case, but without any unnecessary cost.
Here is a bit of information on their present circumstances in case you need it.
They are married, have a family of 5 to support, live in a privately rented home and have a full time job.
Many thanks for reading this post and I look forward to your replies.
Tiredandweary :-)
I am posting on behalf of a friend. I have received excellent advice for my own debts from you all and hope someone can give me some advice on this issue. I am sorry for the long post.
Basically,they had a business with a business partner. The business ceased trading sometime last year and has debts of between £16-£20,000. This includes supplies, PAYE for some employees, (Only informed of by the accountant AFTER the business closed), vat, accountant fees (company and personal I think) and their own personal self assessment tax. Their SE was around £9000 on account but have managed to pay off about £5000. They sold the company vehicle to pay off the company bank account. The partnership did not end amicably and the other partner has done a midnight flit...
They came to me to see if I could help sort out the mess they have got into. I contacted a Debt Management Company and we had a meeting with the man. He said that Bankruptcy was the best option as both partners were equally liable for the company debts. If one didn't pay the other would have to. Then he said, 'to act on their behalf, fill in the forms, attend court etc it would cost £750'. This seems an excessive cost to me, especially as they already have a huge amount of debt and it seems that it costs £750 to go bankrupt in the first place?
I have searched the net for information on business debt and bankruptcy but it seems too complicated to me, which is why I have asked you for advice.
Now, the worst part of this is, they had to declare themselves bankrupt almost 5 years ago, (completely different circumstances). I have a feeling that this will be frowned upon by the courts and the official receiver and I do feel that some sound advice is very much needed in this case, but without any unnecessary cost.
Here is a bit of information on their present circumstances in case you need it.
They are married, have a family of 5 to support, live in a privately rented home and have a full time job.
Many thanks for reading this post and I look forward to your replies.
Tiredandweary :-)
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