Limited company in trouble- what shall we do?
My husband and I own a medical practice and have been sucessful for 17 years. We have never had any trouble paying bills until recently.
Out of the blue all of our staff left us to start their own company.
We have gone from having 6 employees to 2 and our earnings went down significantly and put us in a desperate situation. It has been a very rocky year which meant we had to talk to our bank and were able to get a $40,000 line of credit to help us meet our expenses each month. We have dilligently been paying this line of credit. Our business is now turning around and we are back on our feet but now we owe a couple of months on the lease approx $10,000( landlord aware of our situation) and now the bank wants us to get rid of our line of credit. We are able to make the monthly payments but not pay the loan in full which comes to $30,000.
We are now unsure what we should do as we don’t have a lump sum to pay and the bank knows this as we have been completely open about the situation. We want to move to BC but can’t leave the business with these debts. The company has money coming in monthly that is owed to us, the total would be more than our debts. My husband would be able to work in BC and be able to pay off the debts with no trouble.
We have never been in a situation like this and just want to close our doors and start again somewhere else. If we declared bankruptcy would our bills be paid and if it is a limited company can our personal assets be touched? Thank you for your help.
Based on the little bit of information that you have provided I strongly suggest you contact a trustee where you live. This site was not set upn to deal with complex matters, like your limited company. Without having more information, any advice I give might be counter-productive to the actual strategy you will need to employ.
Contact a trustee directly and arrange for a meeting – it will be time well spent.