Insolvency lawyers - think i'm in trouble

[adelicatequestion]

I'm hoping that its not true, but I mihgt be in big trouble and can;t find an honest opinion anywhere.

I have no idea how to PM, but if someone want to help me I would be eternally grateful, before my case is heard on Monday.

Are we talking personally or through a business? Have you been served with a bankruptcy petition, or a Statutory demand?

If you can't get to the CAB today, I'd suggest you call the court today and find out whether there will be a CAB person in the court building on Monday; often there is someone there in the waiting room or in a side office who can give you basic advice on the day.

Thank you so much for your reply. I am terrified about this. We were told everything was in order and we had done everything correctly but after receiving lots of letters yesterday from insolvency companies, I'm not so sure.

It's a business winding up petition. Advice by accountants is still that we are ok, but loads of letters say we are not.

Very brief synopsis:

company one - bookeeper and accountancy error lead to VAT bill that makes company insolvent without payment plan with HMRC. We negotiate to set up payment plan but HMRC reject and in sept 11 company becomes insolvent. No creditors except HMRC.

April 11 - new company set up with similar name (OK'd by accountants), starts trading May/June but no real bank activity til August. End of sept staff tuped to new company, no assets but goodwill and staff taken on by new company in lieu of a payment.

It seems we may be liable under section 216, but i'm not sure of liklihood of prosecution and we are getting different answers from each person we speak to and they won;t tell us anything unless we pay them.

1. DO we change the name of the company today?
2. Are we likely to be prosecuted?
3. Do we pay to get a definitive answer or are they scaremongering to get some money (we got loads of letters yesterday)
4. As of yesterday accountants still maintaining we have nothing to worry about.

Being brief as I have to dash out (pm me if you want more details and I'll chat later).

S216 applies to debts of the new company, so isn't an issue in the debts with your old co.

No, you won't be prosecuted. The OR may chance their luck and ask you to buy the name of company A from it, as one of the ways of getting round s216 is to buy substantially the whole of the business. It could be wrapped up into buying the customer lists etc. As you have advice from your accountants they won't have a leg to stand on re prosecution, although if you get a jobs worth thorough examiner at the Insolvency Service you may have to answer lots of questions about it.

They are scaremongering to get money. The winding up petition will have been advertised in the London Gazette and the letters you are receiving are from ambulance chasers. Do not touch them with a barge pole.

If everything is above board you have nothing to worry about. The s216 issue is minor and is only prosecuted if done fraudulently, or if you can get lots of money from it (I threatened one with a football club and got them to buy the name).

Thank you so so much.

We did everything properly and correctly and I was terrified that we would automatically be prosecuted because the names were similar and there wasn't 12 months of the new company trading beforethe court date.

It is a very stressful process.

I also get the feeling that because the accountants kept saying "we can't give insolvency advice" that if they weren;t quite up to date we would have no recourse to prove anything.

I feel more relieved. Thanks

...the accountants kept saying "we can't give insolvency advice"

They have to say that because (presumably) they are not Licensed Insolvency Practitioners - most firms of accountants aren't so there is nothing to worry about in this of itself.

I will echo what Swatchdog says about unsolicited offers of 'advice' - always throw these straight in the bin.

Thank you very much for the advice and reassurance.

I guess we sit it out and wait for the hearing on Monday.