VAT Man Is Trying To Liquidate My Company

[Jonny1963]

I am a sole director of a limited company based in Scotland. Despite a lot of juggling in recent months we have now been issued with a "seven day notice" from the VAT man in respect of VAT arreras totalling �8400. We made an arrangement to pay this amount about six weeks ago but defaulted on it.

They've now said we are getting no more chance to pay it in installemts and that we have seven days to pay in full before it goes to their "legal team" in Liverpool. we are not in a position to pay this in full.

To make matters more frustrating we are very close to selling the business. The money raised from the sale will only go towards settling creditors, primarily �140K which I have personally garaunteed. I will make nothing. The sale has been imminent for months but legal delays mean that I reckon it will take about another four weeks to conclude.

My question is this ; how quickly can we be liquidated? What is the procedure and how could it jeapordise my sale? Are there any stalling tactics I could employ? Will i be able to negotiate a payment in installments with their "legal team" or is this the end? It's really a timescale question we're dealing with.

Any help would be very much appreciated.

[hectic]

Try this website, it may help

http://www.insolvency.gov.uk/information/dearip/dearipmi ll/chapter8.htm

[dappleby]

why liquidate, whats wrong with Administration - it will save a lot of hassle over assets and a purchase price