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Alex J.
Alex J., Solicitor
Category: UK Bankruptcy Law
Satisfied Customers: 2651
Experience:  2 Years Insolvency Litigation
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I ceased trading my ltd company on the 31st August 2012, there

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I ceased trading my ltd company on the 31st August 2012, there is an outstanding vat bill approx £2100, however the tax office owe me close to this figure due to overpayments on paye, there are two business barclaycards with outstanding amounts totalling £7000, my accountants advise was to let the company be struck off via one of the creditors rather than apply myself, they have since disengaged their services as part of the process, companies house has started the process of removing the company from its register, clearly I am happy for this to take its course, what further personal implications are there for me and my wife as we are both Directors, the trade and assets not the LTd company were sold for 78k in August as well, the amount received was banked by myself to cover the directors loan account, the company had been financially supported by my wife and I over the last few years, hence the loan account and eventual re-payment is there a danger this could be classed as preferential
kind regards
Jeff Pearson
Submitted: 1 year ago.
Category: UK Bankruptcy Law
Expert:  Alex J. replied 1 year ago.
Hi,

Thank you for your question and welcome to Just Answer.

Are the total outstanding sums from all creditors £9000 approx?

When you made this £78k payment to loan accounts did you take professional advice?

Kind regards

AJ
Customer: replied 1 year ago.

Hi AJ, thanks for your quick reply, yes the total outstanding to all creditors is approx 9k however there is one other problem we had a long running dispute with British Gas going back to 2002, we had already been to court and the magistrate threw their case out, the amount on their final bill was over 34k 90% of which is disputed, since the new occupiers of the building have set up a new account with BG apart from the final bill dated 13th Nov 2013 for £35,781.58 we have heard nothing from them


Kind regards


Jeff

Expert:  Alex J. replied 1 year ago.
Hi,

Thank you.

In relation to British Gas, their claim (if it still exists) is with the company so they will have to make a claim in the liquidation.

The rules on director offences are pretty clear - S.212 of the Insolvency Act 1986. If you have mis applied any money as a director to the detriment of the creditors then you could be liable to repay it.

In your defence you have the argument that you made this repayment on professional advice. The only problem is it was quite clearly made when the company had sold all its assets.

There is nothing you can do about it now, if the liquidator approaches you the worse case scenario is you will have pay off the creditors and maybe the liquidators fees with a bit of interest. For the time being I would just keep quiet and co operate if the liquidator approaches.

If there is not much money in the company it seems unlikely that a private who is funded enough to bring a S.212 claim would be appointed anyway.

If you want to prepare yourself just look to see what justification was given as to why you were allowed to make that £78k payment to your own loan accounts?

Kind regards

AJ
Customer: replied 1 year ago.

Thanks once again,couple of further questions, there are now no tangible assets within the company, assuming that companies house removes the company from its register and if no one or company such as BG or Barclaycard intervene within the 3mth statutory time slot with the financial times, after this time are all debts with the company removed,


regards


Jeff

Expert:  Alex J. replied 1 year ago.
Hi,

Thank you.

The debts are not removed as such, but if the company is dissolved, in order for a debtor to make a claim against the company, and then in turn against you, they would have to restore the company and appoint a liquidator. The S.212 claim is reserved for a liquidator.

In any event you and your wife will only be totally free of the claim after 6 years.

Kind regards

AJ

Alex J., Solicitor
Satisfied Customers: 2651
Experience: 2 Years Insolvency Litigation
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