CCJ against Company at our home address

bathfitter

We used to run a company from our home address. Both my wife and I were directors of the company. The company was ripped off by a customer leaving us unable to pay a debt. This led to the company having a CCJ against it at this address. The company has now closed and my wife and I both work for other companies not connected with us. Will the CCJ be against our own personal credit files as we share the same address as the company or will agencies ignore the fact that the CCJ is nothing to do with us. If it does affect out own credit ratings how do we clean our own credit files.

latecomer

bathfitter wrote: »

Both my wife and I were directors of the company.

or will agencies ignore the fact that the CCJ is nothing to do with us

Firstly I have to say I know nothing about companies and how your personal affairs are kept separate but the 2 statements you made above seem to contradict each other. I suspect the answer might depend on the kind of company you set up.

Easy way to see if there is anything on your credit file is to get a copy. Check the article on the main page and you can get access to at least one of them for free.

chuckley

how is the CCJ 'nothing to do with us' when u both couldnt pay your debts? (regardless of whos fault it is).

id say you'd have problems getting credit because of it.

Neillgb

chuckley wrote: »

how is the CCJ 'nothing to do with us' when u both couldnt pay your debts? (regardless of whos fault it is).

id say you'd have problems getting credit because of it.

Fully agree. Far too much of this 'company director' idea and people walking away from their debts saying "that's business" and nothing to do with them.

Sorry if OP had genuine business problems as stated but they did not pay their debts and their credit file should reflect that fact.

It might help you 'clean' your credit files if you paid the debt due under the CCJ. You would also be doing the right thing which I am sure your creditor would appreciate.

agsnu

I'm fairly sure the people above have no idea what they're talking about. The company is a legal entity in and of itself, and it is responsible for its debts. This is basically the whole point of forming a company: you limit your personal liability towards the company's obligations.

As a result, I'd be very surprised if your personal credit ratings were affected.

jonesMUFCforever

IMO you should always keep the registered address of your limited company seperate from your home address. OP should either have used the premises where they traded from or even their accountants.

NickX

agsnu wrote: »

I'm fairly sure the people above have no idea what they're talking about. The company is a legal entity in and of itself, and it is responsible for its debts. This is basically the whole point of forming a company: you limit your personal liability towards the company's obligations.

This is correct.

A Limited Company (as opposed to a Sole Trader or Partnership) is a legal entity and debts are with the company and not individuals.

Limited Companies cost more to set up and more in accountancy fees but the advantages are that directors liability is limited to the loss of the company. Their personal finances are separate and nothing to do with debts build up in the name of the company.

I think a CCJ against the company is nothing to do with the (ex-)directors other company, however because the company shared its registered address with the directors, this could show a link on their Credit Reports which would suggest to potential lenders that there had been a problem.

Agree with jonesMUFCforever, it is bad practice to use your home address as your Limited Company registered address.

James

First check your Credit Files from Equifax, Experian and CallCredit.

It there is anything untoward you wish to address you can use the Notice of Correction Facility.

The Notice of Correction allows you to use up to 200 words to explain to anyone viewing your files any special circumstances which led to a financial difficulty or explain a problem. The Citizens Advice should be able to advise/help you draft a NoC, if you don't fancy doing it yourself.


If you don't use up the 200 words you can use the NoC Facility to deter ID Theft.

nomoneytoday

Depends on if your company was a partnership or Limited (Ltd companies have limited liability)