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Rates bill/ Liquidation

Rates bill/ Liquidation

We have a new client who is faced with the following scenario. He set up a limited company and started trading about a year ago but due to excessive overheads he made a loss. He has ceased trading now. Now he owes about £10k in council rate arrears and is unable to pay this amount. We have agreed to do his cessation accounts for him. My question is: What to do with the £10k rate bill that he is unable to pay as the council are chasing him for payment? Should he declare the company as being liquidated/bankrupt? He hasn`t got enough funds to appoint an insolvency practitioner so wants us to act for all the matters.

Any help appreciated.


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12th Jan 2012 11:44

The rates bill is a creditor

Are you being paid to do the final accounts?  Why is he bothering to have accounts prepared when he has ceased trading. - what benefit is there for him?

He/you should tell the creditors what has happened and then he should resign as a director. Any creditors subsequently making a nuisance of themselves should be told to b****r off

The company cannot be described as being in liquidation unless it is.

If you're feeling charitable transfer the  company's registered office to your office and put up with flack that ensues

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By Monsoon
12th Jan 2012 13:17

What Bernard said.

I agree with Bernard. That is all.

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