FAQ's - Bounce Back Loan

The solution works by acquiring your company by others company and taking on its liabilities. Then all outstanding debts and liabilities will be settled. The process usually involves transferring ownership of the company's shares to the acquiring entity and filing all necessary paperwork with Companies House. The outcome is that the former owner is no longer responsible for the company's debts and can move on without any further obligations to the company or its creditors.

Initial Consultation: Contact us to discuss your company and your specific requirements. We will provide an overview of the process and answer any questions you have.

Agreement: If you wish to proceed, we will provide you with an agreement setting out the terms and conditions of the acquisition.

Preparation: All the necessary paperwork for the transfer of your company, including any necessary resolutions, forms and certificates shall be prepared.

Transfer: Ownership of your company shall be transfer from you to our clint, including all of its assets and liabilities.

Completion: Once the transfer is complete, we will notify Companies House and other relevant authorities of the change of ownership. Your company’s affairs will be administered by acquiring company.

Support: We will continue to provide support and assistance throughout the process and beyond, as required.

The benefits of our scheme include:

1. Ability to resign as a director and transfer the company to another person or entity.
2. Dissolve the company and relieve yourself of liability for company debts.
3. Protection of your personal assets.
4. Option to receive a percentage of the sale proceeds.
5. Ability to pass on the company with a clean slate.
6. An easier, faster and more cost-effective process than liquidation or administration.
7. A successful sale of your company can improve your credit rating.

After acquiring your company, acquiring company do not have any interest in its assets. The company will become inactive. In that event the creditor successfully petitions for the winding up of the company, any remaining assets will go to the creditors. If Companies House removes the company from its register, the assets will become "bona vacantia," which means they will belong to the Crown.

Yes This is a decision that you have to make. When transferring company assets, it's important to keep in mind that you have a responsibility to its creditors. We suggest transferring any assets you take to the creditors as soon as possible and paying HMRC first if applicable. Keep in mind that certain assets, such as stock, may not have much value outside the business. Consider starting a new business to increase the value of these assets and potentially give more to the creditors. Once you have transferred the company, you will no longer have access to its assets and will have fulfilled your responsibilities to it.

You can check the company's records on Companies House's website. The information on the website is updated regularly and will show any changes made to the company's details, including the transfer of shares. Additionally, you can request a copy of the updated articles of association from the new owners to confirm the changes have been made.

As a director, you have the right to resign from your position. As a shareholder, you are able to sell your shares in the company. If the company is insolvent, it must cease operations, and all necessary paperwork must be submitted to Companies House.

If you have personally guaranteed some of the company debts, you will be responsible for paying those debts even after the company is sold. The company's sale will only remove the debts that are not personally secured. It is recommended to use the money intended for a liquidator to settle the secured creditors.

If you resign as a director but do not transfer the shares, you may still be considered a "shadow director" and be held responsible for the company's debts. The company's registered office may still receive warnings and be visited by bailiffs. Additionally, if the company is later dissolved and you did not transfer your shares, you may face investigation by HMRC or the Insolvency Service, who now have the power to retrospectively examine company dissolutions and strike-offs to ensure they were properly completed and to hold directors accountable for any outstanding debts.

Consulting a licensed liquidator is an option, but the fees are typically expensive, often exceeding £5000 + VAT. This can be a significant cost, especially for a struggling business. Consider whether the fee can be put to better use, such as paying off secured creditors or starting a new business.

Using an insolvency practitioner (IP) can have some disadvantages such as:

The IP will prioritize the interest of the company's creditors over the owner even though they have been paid and appointed by the owner. The IP may pursue recovery of all debts owed to the company, including director loans, through legal action if necessary.

Filing a report with the Government's Insolvency Service about the company's failure and the owner's conduct is part of the IP's duties, which can be time-consuming for the owner.

No, using form DS01 and paying only £10 is not enough to wind up your company if it has creditors. Companies House will advertise the notice of dissolution in the London Gazette, which is monitored by banks and HMRC. If an objection is filed, the company will not be able to dissolve. Additionally, a new bill is being introduced that gives HMRC and The Insolvency Service the power to investigate and penalize directors who dissolve their companies improperly and leave outstanding debts, including Bounceback loans and taxes. Hence, it is not advisable to use the DS01 method, as the consequences could be severe.

To proceed with acquiring your company, we will need the following information from you:

• Company name and registration number
• Details of the company's shareholders and directors
• Copies of the company's articles of association and recent accounts
• Information regarding any legal proceedings, pending or threatened, and any ongoing contracts
• Details of any charges, mortgages or other encumbrances on the company's assets
• Information on any licenses or permits that the company holds or needs to operate
• A list of the company's creditors, including the amount and nature of their claims
• Details of any leases or rentals of property
• Information regarding any employees and pensions arrangements.

The procedure to transfer ownership of the company to our client involves several steps. First, you must provide us with the necessary information and pay the introducer fee. Then, our client will prepare the relevant documents for transferring shares and resigning as an officer. Your electronic signature will be required on the paperwork. After paying the introducer fee, the documentation will be submitted to HMRC to reflect the change of ownership. Finally, our client will update the Companies House records using the company's web authentication code.

Your obligations for the future running and conduct of the company cease from the date of your resignation. When our clint acquires the company from you.

They have the same rights and remedies available to them after our client acquires your company as they did before the acquisition. However, they must now contact the new company owners and not you.

Yes, Bounceback loans and taxes owing to HMRC can be a problem for an insolvent company. Bounceback loans must be repaid, and taxes owed to HMRC must be paid, even if the company is insolvent. If a company cannot pay its debts, including Bounceback loans and taxes owed to HMRC, it may be subject to legal action by its creditors, including the government.

An insolvent company is a company that is unable to pay its debts as they fall due, or one that has liabilities greater than its assets. It is often a sign that a company is facing financial difficulties and may be at risk of going bankrupt.

Wrongful trading is a concept in UK company law that refers to the continuation of trading by a company director when they knew, or ought to have known, that there was no reasonable prospect of the company avoiding insolvent liquidation. It is a potentially criminal offense, and if proven, a director can be held personally liable for the company's debts.

• 1. Negotiate a payment plan with creditors through a Company Voluntary Arrangement, but this requires a profitable company and significant funds to pay for the insolvency practitioner's fees, starting at £5000+vat.
• 2. Dissolve your company through a Creditor's Winding Up. This process requires you to pay an insolvency practitioner a fee of £5000 or more to act on behalf of the creditors. The winding up process obligates the practitioner to investigate the actions of the directors and report any potential wrongdoing to the Official Receiver. The OR will then determine if any legal action should be taken against the directors.
• 3. Another option is to place the company into administration. In this process, an insolvency practitioner will take control of the company and work to restructure its debts. However, this option requires the company to have sufficient profitability to justify the involvement of the professional and demands a significant upfront fee, usually over £5000+vat.

When a company is in financial trouble, everyone involved, including employees, directors, owners, suppliers, and customers, is impacted. The constant stream of phone calls, letters, and bailiff threats cannot be ignored and must be dealt with promptly, especially to avoid accusations of continuing to operate the business despite its inability to pay its debts.

For a fee, we connect you with a third party who will purchase your insolvent company.

Benefits for you:

• Clean break from company.
• Use saved money (from not hiring an insolvency practitioner) to pay creditors, especially those you've personally guaranteed.
• No more correspondence or visits from creditors and bailiffs.
• Reduced risk of being accused of insolvent trading from transfer date.
• Potential for Companies House to dissolve company, ending related matters.
• Increased chance of avoiding director disqualification.
• No requirement to supply ID or address proof.
• Our client is taking over your company, not providing a service.

Limited companies with fully paid shares and located in England and Wales.