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Hi, Thank you for your question and welcome. My name is ***** ***** I will assist you. Just to clarify are asking what your liability is to the bank or your liability for making financial statements? Are you dissolving the company?
Hi, Thank you. Have they actually provided any proof of this debt? Are you confident that using the audit you have conducted you could rebut the presumption that this money is owing? If so, I would write to them, deny any liability for it and say they have not provided any proof and you cannot find evidence that this sum is due and owing. If they then want to pursue you, they would have to sue, in doing this they would have to prove the money is actually owed. You could use your audit as a defence to show the money is not actually owed. How much are they demanding?
Hi, Thank you. It depends what the value of the claim is, and whether you need a lawyer will also depend on the value of the claim. How much are they demanding?
In relation to closing the business is the data base worth anything?
I would be most grateful if you would rate my answer in the mean time kind regards AJ
Hi, Thank you. For a sum of £35k it will cost them several thousand pounds to sue a company that has no assets. This would make any claim very off putting especially if there is no change of recovery of the money. Defending the claim would also be expensive, potentially up to £10k if you used external lawyers. Are you personally liable for this money at all?
Hi, Thank you. The only circumstance here would likely be if you had personally guaranteed an overdraft for example. I think if the company is not actually worth anything, I would write to the bank say you deny liability and if they sue you I would stop trading and let the company be put into liquidation. I doubt they would sue if they cannot really prove how the debt arose.
Hi, Thank you. You can stop trading if you want, if you put the company into liquidation they would not be able to sue you, they would have to register the claim with the liquidator. I am afraid there is no legal aid for these types of cases. Kind regards AJ
Hi, Thank you. Aside from the £10k is the company actually insolvent aside from the £35k?
Hi thank you. Putting the company into liquidation is an expensive process. If you want to wind it down stop trading and go through the dissolution process - if the bank object to you know whether they are prepared to actually pursue the money. As this money is not actually in the company accounts as a debt and is disputed you should be able to go through the dissolution process 3 months after you stop trading. In the mean time write to the bank and dispute the claim as I have outlined above. Kind regards AJ
No problem. I wish you the best of luck. Kind regards AJ
Hi, Thank you. If you owe them money closing the account does not distinguish their right to claim - they would technically have 6 years before being barred. That said you may have various defenses (including one known as promissory estoppel - essentially this means you acted in detrimental reliance on the banks advice that the account was closed) they brought a claim, but ask yourself whether it is even worth defending it considering you do not intend to carry on trading the company.