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  • FIRST POST
    • Shortchanged
    • By Shortchanged 30th Nov 17, 1:52 PM
    • 3Posts
    • 0Thanks
    Shortchanged
    Chasing company assets after death
    • #1
    • 30th Nov 17, 1:52 PM
    Chasing company assets after death 30th Nov 17 at 1:52 PM
    Hi my father owned a LTD company and has recently passed away. Before doing so he gifted me a car that was registered in the company name for insurance purposes only. The car is worth around £10,000.

    It turns out my farther had debts of around £19,000 when he passed, and we knew he was going to die when he gifted me the car as he was terminal, but we knew nothing of the debts.

    Can the car now be chased even though it was gifted to me?

    Thanks
Page 1
    • unforeseen
    • By unforeseen 30th Nov 17, 1:59 PM
    • 2,007 Posts
    • 2,531 Thanks
    unforeseen
    • #2
    • 30th Nov 17, 1:59 PM
    • #2
    • 30th Nov 17, 1:59 PM
    Did your father or his company have the debts? It makes a difference as they are separate entities.

    Who purchased the car - company or father (not who it was registered to)
    • getmore4less
    • By getmore4less 30th Nov 17, 2:01 PM
    • 30,854 Posts
    • 18,453 Thanks
    getmore4less
    • #3
    • 30th Nov 17, 2:01 PM
    • #3
    • 30th Nov 17, 2:01 PM
    Are the debt personal or company?

    Was the car owned personal or company?
    • Shortchanged
    • By Shortchanged 30th Nov 17, 2:06 PM
    • 3 Posts
    • 0 Thanks
    Shortchanged
    • #4
    • 30th Nov 17, 2:06 PM
    • #4
    • 30th Nov 17, 2:06 PM
    The debt is in the LTD company name. My father brought the car with his own cash to drive as a personal vehicle but had it in company name on log book for insurance only.

    The debt was rent arrears (why the landlord let this go on for so long I don’t know!) I have sold some company assets to help cover costs (ramps, tools) but doesn’t really scratch the surface. The landlord is aware my dad had the car and just worried they could chase me for it

    Thanks for your replies
    • Keep pedalling
    • By Keep pedalling 30th Nov 17, 2:28 PM
    • 4,110 Posts
    • 4,475 Thanks
    Keep pedalling
    • #5
    • 30th Nov 17, 2:28 PM
    • #5
    • 30th Nov 17, 2:28 PM
    Does the car appear on the company accounts?
    • unforeseen
    • By unforeseen 30th Nov 17, 2:31 PM
    • 2,007 Posts
    • 2,531 Thanks
    unforeseen
    • #6
    • 30th Nov 17, 2:31 PM
    • #6
    • 30th Nov 17, 2:31 PM
    Do you have any paperwork showing that your father personally bought the car? Receipt etc. If so then it will form part of his personal estate and nothing to do with the company so should be safe from being used to cover company debts.

    It might go a bit pear shaped if your father had to act as personal guarantor for his company when renting the premises.
    • Shortchanged
    • By Shortchanged 30th Nov 17, 2:40 PM
    • 3 Posts
    • 0 Thanks
    Shortchanged
    • #7
    • 30th Nov 17, 2:40 PM
    • #7
    • 30th Nov 17, 2:40 PM
    Now paper work I’m afraid, my dad wasn’t the best with that kind of thing hence the trouble we are in now.

    I’ve got a feeling that maybe somewhere along the way he may have personally guaranted the rent which is why it was allowed to get so high!
    • Yorkshireman99
    • By Yorkshireman99 30th Nov 17, 3:36 PM
    • 3,380 Posts
    • 2,748 Thanks
    Yorkshireman99
    • #8
    • 30th Nov 17, 3:36 PM
    • #8
    • 30th Nov 17, 3:36 PM
    By what authority have you sold company property?
    • TonyMMM
    • By TonyMMM 30th Nov 17, 4:32 PM
    • 2,520 Posts
    • 2,704 Thanks
    TonyMMM
    • #9
    • 30th Nov 17, 4:32 PM
    • #9
    • 30th Nov 17, 4:32 PM
    The winding up (or sale) of the company, and your father's estate are two very different things and you have to be careful to treat them as such.

    Did the company have an accountant ?

    Did your father leave a will ?
    • badmemory
    • By badmemory 30th Nov 17, 5:11 PM
    • 1,071 Posts
    • 1,140 Thanks
    badmemory
    Are you absolutely certain he had a limited company? Just because he may have had employees doesn't mean it must be a ltd co. Have you any copies of previous years accounts that may help. Obviously as has been said an accountant would be a help. Can you find his latest VAT returns, that may give you some hint as to what is going on.
    • Keep pedalling
    • By Keep pedalling 30th Nov 17, 6:49 PM
    • 4,110 Posts
    • 4,475 Thanks
    Keep pedalling
    Now paper work Iím afraid, my dad wasnít the best with that kind of thing hence the trouble we are in now.

    Iíve got a feeling that maybe somewhere along the way he may have personally guaranted the rent which is why it was allowed to get so high!
    Originally posted by Shortchanged
    If he was running a Ltd company he should have been filling accounts with companies house and if he was that bad with his paperwork I would have thought the company would have been struck off yonks ago.
    • Margot123
    • By Margot123 30th Nov 17, 6:51 PM
    • 332 Posts
    • 293 Thanks
    Margot123
    Badmemory has a very valid point. A simple search of Companies House online will reveal if your Dad actually had a Ltd Company. There are also other sites where you can search by an individual's name.

    Ownership of a vehicle is usually determined by who pays for the insurance. Registered keepers are just that, keepers, not necessarily owners. You may be able to show otherwise through a purchase receipt in your Dad's personal name.
    • getmore4less
    • By getmore4less 30th Nov 17, 7:53 PM
    • 30,854 Posts
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    getmore4less
    https://beta.companieshouse.gov.uk/
    • silvercar
    • By silvercar 30th Nov 17, 8:45 PM
    • 36,214 Posts
    • 153,086 Thanks
    silvercar
    Regarding the car, ownership and registered keeper are different entities.
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