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By chris127
#224217
Hi,

I have a limited company and have hit hard times and could not afford to keep paying my yellow pages advertising debt of £24,000.

I have just received a letter from a debt management company asking for the debt to be repaid within 5 days. This is what the letter states below.

Dear Mr Garland,

RE: hibu - outstanding debt £24,060.00

The above account has been passed to the Baker Tilly debt management department to act on behalf of hibu with regard to the outstanding debt. As licensing solvency practitioners authorised BIS(formerly the Department of Trading Industry) and the institute of chartered accountants England and Wales. You are hereby notified that should your payment of the above debt, or a valid explanation as to why you say the debt is not owing, not be received by this office within 5 days of the date of this letter we are instructed to arrange for the issue proceedings to recover the outstanding debt without further notice or delay.

Such proceedings can include the presentation of a bankruptcy or winding up petition (as appropriate), or alternatively debt recovery proceedings in the appropriate county court. In the event of a winding up petition being presented we shall rely on failure to pay the amount owing, within the timescale afforded, as evidence of insolvency pursuant to section 123 of the insolvency act 1986. If proceedings are issued our client will also seek to recover from you interest on the debt under the late payment of commercial debt (interest) act 1998, together with any costs incurred inforcing payment.

I'm not sure on what to do next any help or advise would be greatly appreciated.

Many thanks

Chris Garland
User avatar
By Luke
#224218
Hi there Chris and welcome to the forum

Before advising you properly can you confirm whether this debt is owed by you personally or by your limited company. The letter you have received does not make this clear as it is addressed to you.... If the debt is owed by the limited company then you would have various options depending if you feel the company is still viable. If so then you could consider a CVA or a pre pack liquidation.

If the debt is owed by you personally then again you will have different options depending on your circumstances. If the company is still viable you might be able to deal with your debts using an IVA which would allow you to continue running the company and protect your property if you are a home owner. Alternatively if the company is not viable then you could consider bankruptcy.

Please will you give a few more details about your situation and then we can advise you further.