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Alex J.
Alex J., Solicitor
Category: UK Bankruptcy Law
Satisfied Customers: 3520
Experience:  2 Years Insolvency Litigation
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Hello, my name isXXXXX now has not working status

Customer Question

Hello,
my name isXXXXX now has not working status and I have to pay back to Barclays Bank the business loan of £21000 up to 30 November, but I have no money. Do I have to bankrupt my Company to avoid that payment?

Best Regards,

Eduard
Submitted: 4 years ago.
Category: UK Bankruptcy Law
Expert:  Alex J. replied 4 years ago.
Hi,

Thank you for your question and welcome to Just Answer.

Is this a limited company?
Have you provided a personal guarantee?
Is the company still trading?

Kind regards

AJ
Customer: replied 4 years ago.

Hello,


 


Thank you very much for your response.


 


1.Yes, that is Limited Company.


2.I did not provide my personal guarantee.


3. Company is not working at the moment.


 


I'm awaiting for your response,


 


Best Regards,


 


Eduard

Expert:  Alex J. replied 4 years ago.
Hi,

Thank you if you do not do anything the bank will eventually petition for the winding up of the company. Otherwise you can do it yourself but there is an expense involved (probably about £2k).

What I suggest you do is take steps now to protect yourself personally. Stop all trading activity and do not incur any further debt.

The best way to ensure no personal liability as a director under S.212 onwards of the Insolvency Act 1986 is to take independent advice. This is accepted by the Insolvency Service. Go and see an insolvency practitioner.

What you do not want is to allow the company to wind down so that it either causes personal liability on you or disqualifies you as a director. Again the BEST way to rebut any possible allegations of this by a liquidator is to seek advice from an Insolvency Practitioner.

I look forward to hearing from you.

Kind regards

AJ


Customer: replied 4 years ago.

Hello AJ,


 


The Company has "DISSOLVED" status, it is not working at all.


 


Regards,


 


Eduard

Expert:  Alex J. replied 4 years ago.
Hi,

If the company has been dissolved then it will have to be restored to the register before the bank can pursue their debt.

I would still go and see an insolvency practitioner as potentially you could be disqualified as a director for allowing the company to dissolve with debts.

I presume the debt is no longer being serviced?

Kind regards

AJ
Customer: replied 4 years ago.

Hi,


 


They told me that I will have to pay back the loan in full up to the end of this month ( November), otherwise they will put me to the court.


 


Regards,


 


Eduard

Expert:  Alex J. replied 4 years ago.
Hi,

Thank you.

Do you have the loan document? Is it in your name personally or in the name of the company?

You will have to pay if it is in your name or you personally guaranteed the obligations of the company.

Kind regards

AJ

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