Advice on winding up a company

C

cod1

Guest
I have a small house building company for the last 10 years. It is a limited company. Due to the drying up of work I'll probably have wind it up in the next few months. I should be able to pay all the sub contractors and suppliers and tax man. However the company have a van on finance with a bank with 3 years remaining on the finance - I won't be able to continue these payments one I finish up. Also the company bought a derelict house some years ago that I renovated and put up for sale - with the downturn it never sold - there is a loan outstanding to the bank for this also.

My questions are what do people feel will happen to me regarding the 2 loans. Up till now I have kept up with all repayments but these will have to stop in the next few months.

Will I be pursued for all the monies till everything is paid off?
If I get a job working for a company will I have to pay back via my wages for the next number of years.

Is there anything else I should be doing before I wind up?

Thanks in advance for any advice you can give me
 

Might just answer the following for others to comment:

  1. What is repayment a month on van and how many left?
  2. What is monthly repayment on loan and how many left?
  3. What is the current value of the house in the company?(Market Value)
  4. Did you sign Personal Guarantee for Van Finance and how much
  5. Did you Sign a personal guarantee for house and for how much
  6. who has deeds for property- Do bank have any hold over property
  7. How much left in bank after paying suppliers/subcontractors/taxman.
  8. If overdrawn how much.
  9. How much would you director loan credit be.
  10. Is their a personal guarantee on Company bank account
  11. Are all accounts returns up to date with Companies office and Tax office
  12. Have you gone to your own Accountant for advise.
  13. As the company has a house as an asset have you taught of selling the company by selling your shares and cgt or
  14. Renting out the house and use money to pay back two loans
Are you thinking Voluntary strike or liquidation?

Would it be worth while pay off everyone and try to keep company ticking over till loans paid off and house sold and them voluntary strike off or liquidation
 
papervalue has asked all the right questions.

the liabilities of the company are separate from your personal liabilities unless you have given a guarantee.

The biggest issue is the house and the mortgage. It is also the most difficult one to solve. Vans can be sold and deals can be done with the finance company.

It can be very difficult to sell a house. It all depends on the house value and mortgage amount.
 
cod1 said:
I should be able to pay all the sub contractors and suppliers and tax man.
Click to expand...
Fair play to you. This is an achievement, and many others have failed in this area. Sorry I can't help you on your other queries.
 
Getting a liquidator will cost, there are some adverts for low cost ones, but I don't know how they can make money at those rates.

Also be careful what you write down or type anywhere, once you have decided that the company is insolvent and shoudl be wound up, paying some creditors in favour of others is dangerous, the banks are creditors also.


Could you (especially if you have signed personnal guarantees) contact the banks and extent the loans (reduce the monthly payments), would some of the subcontractors be willing to give discounts (it never hurts to ask - just say you are considering liquidation and ask what they would accept in full and final settlement - there maybe extra VAT due on the issuing of credit notes).

One of the earlier posters suggested renting out the house, would that help if you could reduce the finance repayments?

Basically I'm suggesting looking at ways to survive until you qualify for the voluntary strike off, as that is much cheaper, but the company can have no assets or liabilities, so the creditors would have to be settled and the assets sold.
 
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