# Advice on putting company into liquidation?



## Goingbust (13 Oct 2008)

Hi there, 

Would appreciate some advice here - obviously none of which is binding but some pointers would be appreciated. 

I have been a company director with another family member for several years. For many years the company made very little in terms of revenue/profit. We both had some fairly extreme personal circumstances in 2006 and 2007 and ended up not paying attention to our accounts, paying tax, vat etc and taking out whatever we earned without putting money aside for tax. We really have screwed up. However, in 2006 and 2007 we both earned much more through the company and the revenue went up. 

Our only creditor is the Revenue and we owe a substantial amount - we've both tried to raise the money personally but have been rejected by our mortgage companies/banks. We made an offer to the Revenue to repay a small amount each month but they have rejected it and told us to liquidate. The company has next to no assets - a couple of computers and that's it. 

Not having any experience of this, we don't even know where to start to be honest and are scared witless (and can't believe we got into this position). We both have a limited income over the next six months (and are obviously anxioius about the current economic climate).

So, my questions are:
a) how do we find a liquidator?
b) what can we expect to have happen? 
c) what is the likelihood of being prosecuted for negligent trading?
d) in addition to finding a liquidator do we need to find a) a new accountant or b) a solicitor. How do we go about finding these people?
e) In terms of the amount we owe: are they likely to seek the full amount in repayment and is it known that they'll accept a monthly payment over a period of time - say five or ten years? Or could they put a lean on our homes?
f) Presumably this is going to affect our credit rating? If so for how long? Would it mean our current bank/mortgage lender will call in their loan or would they let it continue? Same with credit cards? (ie I would expect we wouldn't be able to get any new credit but any existing debt be called in). 
g) We're not going to be company directors any more  However, in terms of finding permanent employment, would this have to be disclosed? How would we handle it (I appreciate that this may not be the right forum for that question).
h) in terms of liquidation costs what's a reasonable amount if we appoint a liquidator - will there be court costs, any other costs- how much are we going to need to liquidate the company?

Thanks in advance anyone - pointers on how to get the right advice would be very much appreciated.


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## GOBSTOPPER (13 Oct 2008)

have a good read of the site ,alot of good info on procedures and advice. They can help with your problem. NO AFFILIATION.

This is the second time I posted this advice in two days  SCAREY TIMES.


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## Graham_07 (13 Oct 2008)

GOBSTOPPER said:


> have a good read of the site ,alot of good info on procedures and advice. They can help with your problem. NO AFFILIATION.
> 
> This is the second time I posted this advice in two days  SCAREY TIMES.


 
Be prepared to post it more frequently over coming months methinks.


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## simplyjoe (14 Oct 2008)

Excellent opening post and excellent website (NO AFFILIATION).


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