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Previously on "Company Struck off but Business Bank wants Overdraft and Loan repaid?"
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Striking off a company is only an option for a solvent company, as with MVL. If you strike off an insolvent company, then the debts still stand and the directors can be pursued personally. Bottom line, you’ll almost certainly need to agree a payment plan with your creditors.
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Originally posted by simes View Post
How much of the chap's story did you actually read...??
The point is striking off a company is not a legal mechanism for writing off company debts and he needs to enquire further. Only insolvency will achieve this.Last edited by BlasterBates; 26 March 2021, 13:07.
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Originally posted by BlasterBates View PostYou can't just ignore it, your company will have to go through an insolvency procedure and there is the risk of being held accountable due to misconduct. If you really can't afford it I would take advice from an accountant.
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The company is formally closed and struck off by Companies house. The Business Bank account was also formally closed and removed from my dashboard. So I cant take it though insolvency. There is also no misconduct as the work dried up - no income at all for 12 months.
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You can't just ignore it, your company will have to go through an insolvency procedure and there is the risk of being held accountable due to misconduct. If you really can't afford it I would take advice from an accountant.
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Originally posted by ExLtdCompany View PostMorning All,
Just wondered if anyone could offer some advice for this particular issue please?
I was contracting as a limited company for 8 years but last year, due to COVID, I was out of work for 12 months - and had to use savings to survive. I managed to pay my Corp Tax and Self Assessment but ran out of money after that. I requested closure of my Limited company with Companies House - and it was 'struck off' in October 2020. The Business bank account was also closed as a result after I wrote to all creditors about the closure of the company.
I took a permanent job in November last year which pays £2500 less per month than I used to earn. Which is a big drop.
Since then I am now on a Pay Plan for personal finances with about £100 free per month - but have since had letters from the Business Bank requesting payment for the overdraft of £2000 and also a part paid Business Loan of around £4000. Ive read that Im no longer personally liable for the company debts (except possible the loan as there was a guarantor clause on that one) - but the Business bank have now passed this over to their 'Recovery Team'.
Does anyone know from experience where I actually stand legally on this one?
Any advice gratefully received.
As long as the bank account was genuinely in the company's name, and you have no other guarantees or debentures, and the guarantee you signed for the loan didn't extend your guarantee to the overdraft, then you don't owe it personally.
Write to the recovery team. Saying this overdraft was for a Limited Liability Company so you don't owe them it, and invite them to demonstrate otherwise if they think you're wrong.
As for the rest of it, get some debt advice from one of the many charities.
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Company Struck off but Business Bank wants Overdraft and Loan repaid?
Morning All,
Just wondered if anyone could offer some advice for this particular issue please?
I was contracting as a limited company for 8 years but last year, due to COVID, I was out of work for 12 months - and had to use savings to survive. I managed to pay my Corp Tax and Self Assessment but ran out of money after that. I requested closure of my Limited company with Companies House - and it was 'struck off' in October 2020. The Business bank account was also closed as a result after I wrote to all creditors about the closure of the company.
I took a permanent job in November last year which pays £2500 less per month than I used to earn. Which is a big drop.
Since then I am now on a Pay Plan for personal finances with about £100 free per month - but have since had letters from the Business Bank requesting payment for the overdraft of £2000 and also a part paid Business Loan of around £4000. Ive read that Im no longer personally liable for the company debts (except possible the loan as there was a guarantor clause on that one) - but the Business bank have now passed this over to their 'Recovery Team'.
Does anyone know from experience where I actually stand legally on this one?
Any advice gratefully received.Tags: None
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