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borrowing implications following voluntary wind up

Discussion in 'Property Finance' started by Moist, 17th Nov, 2015.

  1. Moist

    Moist Well-Known Member

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    Hi everyone,

    Just wondering if anyone could shed light on a question I have: How does voluntarily winding up a company affect future borrowing capacity as a director of a trust and as an individual?
     
  2. Terry_w

    Terry_w Solicitor, Finance Broker, CTA Business Member

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    Yes possibly. Was an administrator appointed?

    The company should show up on the personal credit file of the directors. The lenders may then do a search on the company and show that it was in administration and ask for an explanation. If there were debts that were not paid the lender may not like this.

    I have just gotten one through - a loan application for a client - where it was not a problem.
     
  3. Moist

    Moist Well-Known Member

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    Thanks for the reply. I'm in the situation of contemplating my options. Is there a better way to go about things? I believe I am currently solvent. I have debt on the business but I think I can ask a family member to pay out this debt before I make any moves. I therefore, would not think I would have to put the company into administration.

    Will a liquidator still be appointed if I file for a voluntary wind up?

    Sorry, not quite sure what the best way to go about things is, but was just looking to get some advice before consulting a solicitor/ accounant etc.
     
  4. Terry_w

    Terry_w Solicitor, Finance Broker, CTA Business Member

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    if no debts just have the members voluntarily wind up the company.
     
  5. Moist

    Moist Well-Known Member

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    Thanks.

    Who takes over if a members voluntary wind up is done? Does a liquidator take over?

    Would there be future credit implications by doing this?

    Would it matter that I would be going to a family member to 'bail me out'?
     
  6. Terry_w

    Terry_w Solicitor, Finance Broker, CTA Business Member

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    The company is closed. Should be no credit issues.

    There are tax issues with how you pay out creditors. It might be better for you to loan money to the company and then write this off as you can count it is a debt unable to be recovered. But this will effect the winding up if the company has debt.

    Seek legal advice.