What the liquidator is saying is that you took all this money out of the company treating yourself in preference to other creditors and now he wants the money back. Your own financial situation is not relevant.
I have come across this situation before where the main creditor was the Inland Revenue and purely by coincidence, the amount being reclaimed by the revenue was £16,000. The director had spent all the money and didn't have it and was made bankrupt. This is not to be ta***** *****ghtly.
Of course, the liquidator would have to take you to court and prove to the satisfaction of the court that you had treated yourself in preference to other creditors and potentially you could be on the hook to pay the whole amount back, and in the Liquidator has said that he would accept £16,000, it's something that you really need to try to raise.
If you don't have a house with any equity, then probably the worst that can happen is that you were made bankrupt. That may or may not bother you. However if you have equity in the house, it would mean that you are likely to lose the house.
Whether the liquidator will negotiate further in this respect will depend on your ability to raise the amount of money and whether you have a house that in the event of bankruptcy would have enough equity to pay a large chunk of money. If you could, for example, raise £12,000, but not £16,000, then provided you have proof of that, the liquidator is more likely to accept it than have the trouble of going to court.
You might want to see a solicitor who has experience of dealing with insolvency or an insolvency practitioner because the offer is going to be better coming from one of those professionals than directly from you.
Can I clarify anything else for you?
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