I’m worried about Personal Liability for my Company’s Debts
Many Company Directors consult us about whether they could end up having to pay their Company’s debts personally if the business goes into Liquidation or Administration. They hear stories about creditors pursuing Directors for unpaid bills and quite rightly, they worry about it happening to them.
The whole point about trading through a Limited Company is meant to be protecting yourself against this, but unfortunately you can be held personally liable for some or all of its debts for a number of reasons:
The most common is when you have given a Personal Guarantee to the Company’s bank or to the landlord
Sometimes suppliers demand some form of guarantee to continue trading with the Company if it is struggling
If you have taken money out of the Company as a loan
If you take regular cash drawings, which are normally converted into a dividend at the year end, but the Company’s losses have wiped out its reserves and made any dividend illegal
If you are found guilty of an offence like Wrongful Trading
Under certain circumstances, if debts to HMRC are left unpaid
If you have used a Bounce Back Loan or a Coronavirus Business Interruption Scheme Loan for non-business purposes
It’s important to speak to people who can help as early as possible. We have experienced teams who can help you and work with you to achieve the best outcomes for you and your business. For a no-obligatory chat, complete the form opposite, include a best time for us to call you and a Partner will be in touch.
Alternatively, book a convenient time for us to contact you