I am a small business owner, working on a commission basis only. Now, I own a CC that has been in exsistance for just over ten years. Unfortunatley, due to some bad moves in my side, I am being sued by an ex - employee in the labour court for R 96,000 (which she does not deserve, she worked for me for a just over a month, and walked out, unfortunatley I messed up and did not attend the Labour Court hearing, thus she was awarded default judgement of her salary for 2 years). So this thing has cost me over R 150,000 in legal costs already, trying to stave off this judgement, to get it rescinded, to prevent them from attaching my assets. To top it all, I owe the Revenue Service quite a bit of money, and do not see how I can pay this anywhere in the future.
Now, I would like to get advice on this situation.
Should I approach the Revenue Service and try and reach a settlement? I am worried I might be prosecuted and sent to jail. Or, in such circumstances, can one try the liquidation option? My Lawyer for the labour case suggest liquidation to me a year ago (to prevent the other party from attaching my assets), did not consider it at the time. However, things are not getting any better, legal fees are increasing (labour case has been going on for 2 years already), with not enough money coming in.