Liquidation of a Handyman Business

Background

Mr A Nother traded as a handyman for seventeen years as a sole trader, until his accountant recommended that the business be incorporated into a limited company. Mr Nother was the only employee and although the Company occasionally dipped into its overdraft it traded sufficiently for a further 3 years.

Challenges Faced

The work slowly dried up due to a general downturn in the market and the Company struggled to pay to its creditors. The stress of the persistent calls, the numerous demands for repayment and the constant worry that bailiffs would turn up at his house was affecting Mr Nother’s mental health.

Insolvency Process

Initiation

Mr Nother did not know what to do, he had no assets to sell and the cash at bank would not cover all the company’s liabilities. He called his accountant who put him in touch with Parker Walsh and after speaking with Molly Monks, a licensed Insolvency Practitioner and a solution was found.

Strategy

Parker Walsh notified all the creditors within a couple of days that the company was entering into Liquidation and managed all the creditor communication, even the phone calls. Within three weeks of contacting Parker Walsh the company entered into liquidation and Mr Nother found full time employment working for someone else in the industry.

The cash at bank was used to cover the Liquidation costs so the director did not have to use any personal funds to close the company.

Recommendations

Although it may seem like there is not a solution to your company’s financial troubles, we encourage you to speak with a licensed Insolvency Practitioner, such as Molly Monks of Parker Walsh as soon as possible. A strategy can be found and once in place the relief can be immediate; Parker Walsh is proactive and will notify your creditors immediately upon receiving their details. We will also take care of any menacing phone calls, emails, or letters you may receive.

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