By Tim Corfield
“I’d like you to liquidate my company” Henry said “I had a catering contact for a hotel that’s been suspended indefinitely. The staff I had have all left and I don’t owe them anything. I’m broke but there are no other creditors other than the bounce back loan”.
“Why does the company have to go into liquidation straight away? ”I asked. “There are no creditors, including employees, only the BBL which doesn’t start to be repaid until May next year. So, there isn’t any creditor pressure at all. Things could change enormously over the next few months. The contract may be reinstated and the best way forward may be to pay the loan from the profit stream of the company over the next few years”.
“If we liquidate the company I’d also need to be paid. So, you’d be creating a personal liability of around £3,000 which you don’t have at the moment and can’t afford. Why don’t you park it for four or five months and call me back in the Spring? I can’t see you’ve got anything to lose”.
After a few minutes of further discussion Henry said “That sounds like a plan. I’ll put your number in my telephone”.
If you have a client who has financial difficulties please don’t hesitate to call me for a realistic assessment. I’m around any time – 077869 65009.