Client having problem with bailiffs

Client having problem with bailiffs

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Hi

I have an engineering company client which is a limited company with two directors and which has had to cease trading because of the recession and the ill health of the managing director. The staff were laid off in August last year and they vacated their premises at the end of October. They have not gone into liquidation because they wanted to try to pay all of their creditors off and keep their pride intact which they have in effect done; I am currently clearing their VAT arrears with their Corporation Tax rebate and then we should be there for all intents and purposes.  The only problem is that they couldn't afford redundancy pay and so the agreement was that if they found the two remaining workers new jobs they wouldn't chase for redundancy pay.  This has now back-fired and a tribunal has found in favour of the employees and the bailiffs are going after the managing director personally at his home address for the monies owed. Firstly as it is a debt of the business can they do this and secondly as the company did not have any spare funds whatsoever is there some sort of Government fund we could apply to for the money to be paid out so that no-one is effectively out of pocket.

I know this is effectively more of a legal question than an accounting one but any assistance would be greatly appreciated as my client is severely stressed at present.

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