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Joshua
Joshua, Lawyer
Category: Law
Satisfied Customers: 25947
Experience:  LL.B (Hons), Higher Prof. Dip. Law & Practice
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I have a company in UK since 10 years. The business is

Resolved Question:

I have a company in UK since 10 years. The business is running low and if there is nothing changing the next months I have to go to insolvency.
I have a home in UK, but now I am more time in Germany with my boyfriend. Of course I still pay tax in UK, have a NINO no etc. - although I am spending time in Germany, can I make the insolvency process in UK?
Submitted: 1 month ago.
Category: Law
Expert:  Joshua replied 1 month ago.

Hello and thank you for your question. I will be very pleased to assist you. I'm a practising lawyer in England with over 10 years experience.

I am sorry to hear business is struggling. Could you tell me is this a limited company you have in the UK or are you a sole trader?

Customer: replied 1 month ago.
Hello Joshua, Is this possible to discuss this not on this forum? Can you please send me an email? I need someone who helps me in this process. Do you offer this service?
Expert:  Joshua replied 1 month ago.

Certainly - we can discuss by phone if you prefer or by email. Both of these services are treated as additional services by the site though and it would involve an additional fee. If you would prefer to avoid such a fee it is possible for you to ask to have the thread locked for privacy once we have finished. Do let me know how you loke to proceed.

Customer: replied 1 month ago.
Hello, o.k. I need just one thing to know. This was my initial question. I have a ltd company in UK, I am the only shareholder. I had a terrible divorce and I am not able to pay all the bills of this lawyers of my ex-husband. Therefore I have to go to the private insolveny process. It is not a problem that I cannot pay the bills of my company.
How are the rules when I have a little home in UK, but being in Germany quite often. I do not pay tax in Germany. Does the Court in London accept this?
What is the allowance I can earn without distress? 3 kids are living with me who are still in school.
Expert:  Joshua replied 1 month ago.

Thank you for confirmation it is ltd company. May I clarify for the avoidance of doubt that it is your company that is becoming insolvent but you personally are not also insolvent?

Customer: replied 1 month ago.
Only personally I guess - if the company can survive?
Expert:  Joshua replied 1 month ago.

Thank you. As I am sure you are aware, a limited company has its own distinct legal personality - in other words it is a separate legal person to you. therefore, the debts owed by your company are not the same as debts owed by you and similarly, debts owed by you are not the same as debts owed by your company. Therefore, if your company has more debts than it can sustain, it is possible to wind up the company potentially without any impact on your own finances personally and similarly, it is possible for you to enter insolvency personally without it affecting your company except that you would no longer be able to be a director of your company during any bankruptcy period and if the shares you have in your company derive income will have value, they could potentially be claimed by the official receiver for your bankruptcy for payment of debts you owe.

if you are considering insolvency personally, there are two principal options: first is an IVA which is an agreement you enter into with your creditors agreed payment terms for a set period and providing you stick to the terms of that agreement, after the agreed period, which is typically around five years, those debts are written off.

The alternative is bankruptcy which can last typically up to 3 years providing there is no evidence of bad practice on your part - e.g. hiding assets etc - but you would be typically discharged after one year in many cases. In bankruptcy, all of your assets except some very limited exceptions where you can show they are necessary for you to earn an income are transferred to the official receiver for your bankruptcy it will use them to pay off your various creditors. Once you are discharged, all your debts are written off and you effectively can start again. during bankruptcy, you are required to make payments that you can afford from your income and means assessment will be carried out. the official receiver cannot claim money from your income which you can show that you reasonably need for normal domesitc expenditure taking into account your dependents. a determination is made on a case-by-case basis but as a guide, the official receiver will have regard to the below figures which will give you an idea of the standard of living you could reasonably expect during bankruptcy:

https://www.gov.uk/government/publications/insolvency-service-household-expenditure-survey-in-connection-to-income-payment-agreements-ipa

Both approaches have their advantages and disadvantages depending upon your circumstances and you can obtain some free advice by contacting the following organisation:

https://www.nationaldebtline.org/

Does the above answer all your questions? If it does, I should be very grateful if you would kindly take a moment to click a rating for my service to you today. Your feedback is important to me. If there is anything else I can help with please reply back to me though

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