Social Security - Embargo of assets

Will try to keep this brief & would greatly appreciate any advice on the following.

My partner had 2 SL companies which despite all efforts, collapsed towards the end of last year. Outstanding debts with the majority of our suppliers have been settled but we have an outstanding amount with social security for each company. One for 3,700 & the one for 3,200. This was the total debt to them when the companies were wound down in Dec 08.

We went to our labour assessor at the time to try & get some advice on how we should proceed with tackling this issue. Common sense told us that we should try to negotiate with them. She advised against this & said that as soon as we show our faces, they will expect some form of payment immediately. She also informed us that due to the current economic climate, the Government were giving a 2 year grace period to companies to settle outstanding Social Security debts. After this 2 year period had elapsed, she said it was 50/50 as to whether they even chose to pursue it. If they did, the amount would have grown to around 14,000 with fines after 2 years. As these 2 companies have pretty much cleaned us out, the opportunity to regroup & get the money together somehow over the next 2 years seemed like our only option. We accepted we'd have to take the hit on the fine & the increased amount.

The company bank accounts were embargoed virtually immediately at the time & a small amount of money was frozen. Question is, why has this happened if there is a 2 year grace period in place? Second question is, how do we know if the embargo has been extended to cover other company assets such as vehicles? Everything we have is currently for sale, including our house as with no income coming in, this is the only way out of this situation at the moment. The outstanding social security debt was for our employees at the time but is my partner as administrator of both companies liable for this? I understand with tax issues, it is much like a Ltd company in the UK where the company is liable rather than the individual. Are we at too late a stage now to transfer assets into another name so that we can ensure we can sell them & settle everything?

If anyone can help us shed some light on any of the above, it would be greatly appreciated. Many thanks in advance. 

 Hi sfo1, sorry to hear of your predicament and I will try to answer as best I can. Some of your issues I have knowledge and personal experience of, others I dont and Im sure someone will better knowledge than I can answer those ones.

Hacienda, as soon as monies hit your account, will hold them to pay for whatever is outstanding, and they will keep doing that until all debts are paid off. I cant see them leaving a 2 year grace as they automatically send out embargoes for monies owing. Maybe there is a way you can get around this but I dont know for sure. Best thing to do is not put any money into your account and indeed close them down (the company ones). I suspect the 2 year grace works as you try to pay them when you can but directly into their account, or maybe they have to agree a payement schedule which would be signed and maybe notarized, that I cannot answer.

The SL is like the LTD company in as much as the company is liable only for the amount of capital, usually 3000 euros, BUT the administrator is personally liable for debts especially if they are seen in a way where you are trying to avoid payments, and certainly in the cases of tax and social security payments! Any assets in the name of the administrator will be targetted!

Re the proeprty you can request an up to date nota simple - your lawyer can do this and its a cost of around 12 euros, this will show any embargoes on the proeprty. If they are there then when you sell these have to be cleared in order to pass clear title to the buyer. Same as for cars, bikes in fact anything with the administraotrs name on.

You could change the car title into your name if its clear to save that but you will pay for the transfer. Re the house if youhave a mortgage then probably you will have no choice but to see what happens. Again, a gestor will be able to tell you if any embargoes have been placed on any assets.

Hacienda are very powerful and most of the time no one even knows they have placed an embargo - there is no paperwork delivered to you.

I hope it all works out.