Hello and ....... help if you can please

[Tommy1772]

Hi folks, I've just joined the site on the recommendation of my partner. I'm kind of in the mire with debts to all kinds of creditors due to my company failing. It was a ltd company and there wasn't enough assets to dissolve it (not enough to pay the administrator anyway..) So I'm left with a company that is still live and the debts are still there. I'm being chased for them relentlessly and i just don't have anything to pay them.. i'm upto around the 20k mark in debt.

The latest development is hmrc chasing VAT payments totalling just over 3k, they have send a bailiff around to get payment.. Trouble is all the VAT returns were estimated by HMRC because I stopped doing them in 2016, the company pretty much hasn't traded since then anyway. The advice I had from the administrator was to just do nothing, because I hadn't the assets to pay the debts, or them so just sit tight and wait for companies house to strike me off the register... that was nearly 3 years ago and we're still live and still liable for the debts, one of which is a guarantor for a company loan..

I really need some help and advice to settle all this, it's making me ill. I have been burying my head in the sand just trying to get through, but now it's all going to come to a head in a bad way, can anybody help please?

[Light181]

i feel for you, i would write a letter to HMRC explaining the whole thing. My mum owed 5k, didn't fill her tax returns for a few years, had lots of chasers, they then let her pay 50 a month in the end. Good luck xxx For other debts there is a site called Step change i believe. My brother had 20k debt and use a similar site, they get all your debt in one pot and then distribute it the creditors from one bank account ....not sure if similar, then you just agree to pay the fixed amount each month. he could only manage like 200 max i think......

[Tommy1772]

i feel for you, i would write a letter to HMRC explaining the whole thing. My mum owed 5k, didn't fill her tax returns for a few years, had lots of chasers, they then let her pay 50 a month in the end. Good luck xxx For other debts there is a site called Step change i believe. My brother had 20k debt and use a similar site, they get all your debt in one pot and then distribute it the creditors from one bank account ....not sure if similar, then you just agree to pay the fixed amount each month. he could only manage like 200 max i think......

Thankyou so much for that! It is a heavy weight to carry around and it just cripples you doesn't it? I will check out all the things you've suggested and I'll keep you posted with the result. Thank you again x

[ostell]

The debts are owed by the company so if the company is broke then there is nothing to give them, that's the whole point of limited.

Where you are acting as a guarantor in a private capacity then unfortunately you will be liable.

[Light181]

yes it does cripple you but there is light, just have to be honest and tell them what happened and what you can afford, My family is a burden for me and i have had to step in and help them as i couldn't turn a blind eye, plus it was stressing me out.....the thing my brother did was a debt management plan. when i called the charity line, i still remember the man being super nice and understanding. Just make a list of all the debts you owe and have you info ready.

i hope this helps you, all the best xxxx and yes keep me updated......

[ostell]

I repeat: You are not liable for the debts of the company, as I said that's the whole point of limited (liability)

[Tommy1772]

I repeat: You are not liable for the debts of the company, as I said that's the whole point of limited (liability)

Thanks for this, I know this, but the company is still active, as I cannot liquidate it without the funds to. There are no assets to pay for that either, so until it's struck off, I'm a shooting duck.. I think?

[Tommy1772]

The debts are owed by the company so if the company is broke then there is nothing to give them, that's the whole point of limited.

Where you are acting as a guarantor in a private capacity then unfortunately you will be liable.

Yeah, unfortunately I am guarantor regardless of the company folding, so I owe something like 13k to the loan company. They've placed something on the property of my now ex wifes house, so if it's sold they get their money? So things are a bit messy at the moment and I'm just struggling through the wood to see the trees..

[pt2537]

The only way you could be liable personally for the debts of a limited company is if they can lift or pierce the corporate veil

[ostell]

No you're not, they can only claim against the company for company debts. No money = no payment. They can't look to you for payment for the debts of a different legal entity.

There are some conditions where a director can be held liable but few and far between

[Tommy1772]

yes it does cripple you but there is light, just have to be honest and tell them what happened and what you can afford, My family is a burden for me and i have had to step in and help them as i couldn't turn a blind eye, plus it was stressing me out.....the thing my brother did was a debt management plan. when i called the charity line, i still remember the man being super nice and understanding. Just make a list of all the debts you owe and have you info ready.

i hope this helps you, all the best xxxx and yes keep me updated......

That's so nice of you. Thanks. I've managed to speak to the HMRC and they've been very helpful, so fingers crossed this one might be sorted easily.