Just starting again without closing up
Just starting again without closing up
Author
Discussion

matjk

Original Poster:

1,112 posts

170 months

Thursday 27th September 2018
quotequote all
So one of our customers has emailed us and told us they wont be paying an outstanding invoice as they are "no longer trading". A quick look on facebook and experian shows they have just Renamed the facebook page, started a new LTD company and continued as if nothing has happened.
Now I'm pretty sure you can't just decide to "no longer trade" ignore all your debts, transfer everything to a new company and start again without properly closing the first company down by either dissolving it or liquidating it, but they are convinced that its fine,
Its not much money but I'm curious to know what legally speaking they do need to do.
Thanks

Countdown

49,519 posts

226 months

Thursday 27th September 2018
quotequote all
If the first company still exists then it can be pursued through the Courts.

Normally this is called Phoenixing - closing down 1st company and opening second company which is exactly the same as the first.

Simpo Two

92,944 posts

295 months

Thursday 27th September 2018
quotequote all
Act fast before they close the old company. Facebook doesn't count, Companies House does.

anonymous-user

84 months

Thursday 27th September 2018
quotequote all
Get your claim in pronto

Thankyou4calling

11,024 posts

203 months

Friday 28th September 2018
quotequote all
If it’s a limited company you have to apply to companies house to dissolve.

That takes three months minimum, longer if someone objects.

They may have already done this but if not you can’t simply say it no longer exists.

JM

3,170 posts

236 months

Friday 28th September 2018
quotequote all
Was the 'old' company a LTD company or just a sole trader.

Either way unless liquidated or bankrupt they are still liable to pay in full.

matjk

Original Poster:

1,112 posts

170 months

Friday 28th September 2018
quotequote all
New and old where both limited, I’m not overly conserned as I have a fair bit of leverage to make them pay up and it’s only a small amount , I know companys Phoenix but I thought they made a little more effort than this !