Can a ltd company go bust to avoid debt

[hagaforry]

& just start up again under someone else's name, i.e spouse?

The debt being a court order

Yes, they can. The whole point of a limited company is that there is no personal liability if the company goes bust.

Well not quite. The directors can't be a director again for a long while

Well not quite. The directors can't be a director again for a long while

Well not quite. The directors can't be a director again for a long while

Technically yes but that doesn't mean you should. This is called a phoenix company - highly problematic and could lead to legal consequences for the directors of both companies.

Please take professional advice from a lawyer, accountant or tax advisor.

If debts are way in excess of assets then going bust ie shutting the business down and winding it up in an ordered fashion is pretty much standard stuff.

It is though massively abused particularly in some trades such as secondhand cars and building.

Generally yes, of course they can. How else do people get rich ?

The more correct answer is "not always". If it can be shown that the directors were acting in bad faith (taking on lots of debt in the clear knowledge they were never going to repay them) then there are various arcane legal procedures to sue them and prevent them getting away with it. However as will almost everything that "should" happen there is what some may call a reality gap in the process. Meaning it never happens.

Suggesting this is the only way people get rich is wrong. I know many people who have become rich without ever doing anything like this.

It is also not true that directors always get away with it. Around 1,000 directors are disqualified a year. Prior to the pandemic, it was around 1,300 a year. The lower number now is mainly due to the reduced number of company insolvencies.

Of course, the rules designed to protect creditors in this kind of situation are not always followed and I'm not saying that every director who misbehaves is disqualified.

In the OP's situation, the new company should have paid a fair price for any assets purchased from the old company. She should contact the liquidator to see if she is entitled to get at least part of her money.