FAQs
No - the bounce back loans are backed by the government.
The business or limited company is responsible to repaying the bounce back loan in the first instance.
If the business is unable to, then the bank will only be able to claim back from the government once the limited company is in an insolvency process.
An insolvency practitioner will review how the bounce back loan was spent and applied for.
It is vital you are open and honest, so the correct advice can be provided to you, as a director.
A limited company’s debts are limited to the Company.
The Company’s debts DO NOT belong to the director’s personally and will stop with the limited company.
However, it can have an impact on the directors’ personally if you have an overdrawn directors’ loan account, or have signed any personal guarantees for the Company’s debts.
Call us sooner rather than later. As licenced insolvency practitioners, we can review the Company’s financial position and advise if the Company is able to repay the debts to HMRC over a period of time. We can help with negotiating a time to pay plan with HMRC on the company’s behalf.
The costs of a liquidation will vary depending on the facts of the case and level of work that needs to be undertaken.
Here at Smith & Barnes, we always offer an open and upfront fee, and there are never any hidden costs you would be personally liable for.
Yes! If you are a director of a liquidated company. there are no restrictions on you acting as directors of other/new companies.
The main problems our clients face are listed below:
A demand has been issued for a debt and the business cannot repay
HMRC are being paid late, or not at all
Cashflow is a problem and the company is struggling pay invoices by the due date
There are insufficient funds to pay staff wages
If any of these sound familiar, talk to our team for a free, no-obligation call about how we can help you.
