Limited Company and Debt

[Die Groot Krokodil]

I started a limited Co. about 2 years ago. We recently started trading. I broke my neck and everything went tits up. We now have solicitors letters demanding around 5k. Are we able to just wind-up the company? if so how?

Thanks

DGK

[xoggoth]

<Vague mode>I believe debtors (creditors?, I never remember which is which) have to be informed and they can object to a winding up. I think there is some detailed advice on this on the Companies House website although it's hard to find.</vague mode>

Also, sorry to be a traitor, but I always think shout99 is much better than this forum for serious accountancy questions as they have some experts. This one is good for abuse, flip remarks and rather vague replies as above.

[DimPrawn]

and for pictures of naked ladies.

[wendigo100]

and excreta taurum.

[ASB]

I suggest you do a search for some general info and speak to your local CAB, or by preference an insolvency practioner. It may be wise to do this before the situation deteriorates.

Ultimately you cannot just wind up. If you wish to wind up with outstanding creditors you will have to go the formal route through an insolvency practioner. In principle the debts will die with the company and be dealt with by the appropriate pecking order. However you may have personal responsibility for some or all of these. It depend what guarantees you have given, if any. If it can be demonstrated the company has been trading whilst insolvent then it is likely you will lose the protection of incorporation. i.e. you'll get landed with the debts.

You could look towards a company voluntary arrangement. This may be beneficial.

Eventually one of your creditors may petition for insolvency anyway.

The longer you leave it the worse the fallout may become. So, to reiterate, get some proper advice. And now.