I have a couple of questions around the SpongeBob plan

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Hello, I have had some amazing support and sound advice from folks on here. Im short my situation is this. I am a one man band contractor operating through my Ltd Company. Regardless of anyone’s personal or professional opinion, have absolutely no option left available to me other than following the SpongeBob plan which was posted by @Spongebob in the past.

I would have been needing to submit my 1st ever set of accounts in January.

However, a few months back a number of things happened simultaneously which tipped me over the edge. There probably hasn’t been a day go by where I haven’t contemplated ending it all such is the condition of my mental state. What’s ironic about this is that I am about to publish my 1st ever book which is about the male identity. I will make hardly anything from book sales -but it is intended to give me a platform to start marketing a coaching business, something I have always wanted to do. I still call have been able to find any more contracts since May – the whole IT / Tech landscape is anaemic at the moment. And so given I have had no money coming in i still had a wife and children to support. As per my previous post this was around the same time that I found out about what a Directors Loan Account DLA is, and also that even if I liquidate the business I would be pursued personally for the ODLA. I genuinely didn’t know but anyway I am where I am. During the same period I also found out that my wife wanted us to consider separating, and I also discovered that I have a medical condition that means I will just keep getting Sepsis. I have already had it twice so far – the last one being a few weeks back where I spent 8 days in hospital.

It was the cumulative effect of all this that resulted in me having a complete mental breakdown.if you have never had one basically in my case, I was walking along the path and I just sat down crying, in total despair. Thankfully some passers-by stopped and eventually drove me home. I’ve suffered from mental illness my whole life but this recent period is like an altogether new level.

So where I am is this.

– I no longer have an accountant
– there are c400 transactions that still need to be reconciled in Xero
– ODLA – balance will be in the region of £30 – 40k overdrawn
– there is our family home where I have equity but it’s also where wife & 2 children, 1 of which is disabled live

I just can’t handle this, I went past caring ages ago. I have tried and tried to get more contracts to no avail

The questions I have vis-a-vis SpongeBob plan are:

– My only creditor is HMRC, or more accurate description would be HMRC WILL be my only creditor if I did send in a 1st set of accounts come January
– Given I won’t be sending any accounts in AND instead I will have sent in the initial letter to my creditors (HMRC in my case). I assume that they will block any requests for dissolution and will appoint an IP to liquidate my business
– The liquidator is going to expect me to cough up a chunk of cash that I simply don’t have to settle the ODLA.
– from what I have gathered on here I will, by the time it gets to this stage, be able to ‘potentially’ negotiate and agree on a reduced amount to settle ODLA
– The very best I will be to offer is a payment plan, based on my income & expenditure report, which given the amount will take me years to repay
– They can take me to court to force the sale of our house. I know legally they can do this but I will fight it all the way and question whether it is in the public Given the negative impact on my sons disability (this would ser 2)j Back 1-2 years along with my own mental jjeth. From what I have read –

Honestly folks this is by far the worst year of my life, however I’ve learned some very painful lessons and if I came across them again in the future I am going to be well prepared. And please I really don’t want any judgments from any of the holier than thou mob. I had no idea that my entire life was about to collapse in the way-it has. i was there happily going on with working and then bang, bang bang life just came along and turned me upside down.



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