Questions on BR

peachyprice

jenni75 wrote: »

Peachy I agree with what you have said there, but neither of us were able to remove our names from the business account when we still had a overdraft on it. Would this not apply when its a ltd company?

No, it is different if it's a limited company, Badger is now only an employee, who happens to be a signatory on the account, so can therefore be removed at any time without the need for the OD to be paid back. The OD is the ltd company's not Badgers.

Tobiwan_Kenobi

peachyprice wrote: »

The OD is the ltd company's not Badgers.

Unless they have given a personal guarantee on the OD, required by more and more banks these days.

peachyprice

Rebe wrote: »

What Jenni75 meant with debt falling onto your wife is that, because it's a joint account and you decide to claim BR, because your wife is the other holder, they will pass the debt to her to pay off (as she's not the one claiming BR and they can still claim the repayments from her because she is on account to) hope this makes sense

Ditto, is won't make any difference to the business account, and it can't be included in Badgers BR because he isn't a director, only an employee. And it isn't his wife's account either, it's the Ltd company's so they can't pass the debt on to her.

For example, I am an authorised signatory on one of my company accounts, the fact that I have gone BR has no effect on the company I work for, I think i would have been sacked by now if it did

The fact that Badger is married to the director is irrelevant.

Rebe

Apologies for that last post by me then x

Badger_Badger

Rebe wrote: »

Would the company be able to continue as normal if you tied the overdraft on the business into the bankcruptcy in order to get rid of that debt also?

The business could still function as my wife and I are the only employees, I'm seeing if we can open another business account but without me being part of it as I suspect there's no way whatsoever the current bankers will remove me.

The OD is the ltd company's not Badgers.

I should add that I'm down as a guarantor for the OD & small business loan if the business goes wrong. At the moment the business is doing ok. The small business loan will be paid off in August this year.

peachyprice

In which case, as Tobiwan said above, if the business did go wrong your BR will absolve you from any liability and it would all fall to your OH.

Badger_Badger

Just so it's straight in my head so to speak,

If we get a new business bank account with a different bank and ensure that I'm not on the new account, I can go BR, take the current OD with me as I'm the guarantor for it and we should be able to keep the business running?

peachyprice

Is it just you who's the guarantor, not your wife?

Badger_Badger

I'm quite certain that it's just me, but she could be one too. I'd need to check.