small Ltd company to close with creditors

S

savoy

Guest
Hi all,
Any responses appreciated. I am in retail trading for 6 years, the last year has been incredibly difficult and i will have to close after Christmas. My questions are as follows.I have a few small creditors and owe a small amount of vat which I hope to pay off with xmas takings. If i dont make enough can i write to the remaining creditors and offer to pay them off over time when i get a job? All returns up to date. Will not go down liquidation route as its to expensive and i would like to maybe go into business again in a few years time maybe.
THANKS
 
I think your plan is a good one and very commendable and honest.

If for any reason you're not able to pay your creditors in full after xmas
they (the creditors) may be amenable to accepting a settlement of say 50cents in the euro. Make sure you treat all your creditors equally and if they accept such a proposal, you can then proceed with either a voluntary strike off or leave the company dormant until you're ready to restart.
 
It is a good proposal but I strongly recommend that you talk to your accountant. If you can't pay you debts, the decision to liquidate might be taken out of your hands and thats never pretty.
 
I reiterate what MKBrazil states. I understand that you seem to be an honest person it is a small ltd company and therefore coming to an arrangement with your current creditors may well be a good solution but you should talk with your accountant. As you have already seen that the writing is on the wall in terms of your business operation, are you sure it is not insolvent already? It is illegal to trade whilst insolvent and even though you are probably small in the great scheme of things, sometimes people who are owed money are strange and may take your actions up the wrong way and make life more difficult.
 
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