Help! Ltd co. debt - HC Bailiff removal van at my home?

1manband

Hi,
I have been running my own company since 2002 but after a terrible 2-3 years trading have been forced to take a job to pay the mortgage. The co. still has debts that are being serviced very slowly by a drip feed from my final client.

Unfortunately one of the suppliers I parted company with over 3 years ago has steadfastly refused a reduced payment plan. They obtained a CCJ for sub £2,500 but transferred it to the high court. The debt and CCJ are both with the ltd company but like many SMEs/one man bands my limited company is still registered at my home address.

After giving up the serviced offices I used for the company I have a kept my old work pc for family use in a small study at the back in a garage. This is attached to the house which I understand is an important distinction?

When the HCEO originally called I explained the financial difficulties of the co. & the fact that the registered address they have is my home- not commercial premises. They backed off after an initial visit and nothing much has happened for a year or so.

However in the last 2-3 months a few letters have been received from a different HCEO firm and despite speaking to them & the solicitor concerned they will only accept a massive lump or a reduced monthly pay plan if I change the debt to a personal debt, which I will not do.

Again I've explained the situation to the HCEOs/Solicitor but they insist it makes no difference that business debt/residential property? They insist they can still attend and enter?

I want to get this settled but cannot afford to pay the debt, which has grown to almost £3400 with bailiff 'fees'. I've twice agreed to a figure with the solicitor only for the bailiff fees to double it with inflated fees - so I've been left with no option but to ignore the letters in the hope that the limited liability status of the company will provide some protection until the hiring fee comes in or I find another solution.

Finally the bailiffs arrived unannounced last week with a removals van in tow. It was the middle of the day when usually no-one is there however my wife happened to be in with one of her students when the bailiffs started banging on the door.
They were very forceful threatening to take the car, saying to my wife they would enter the house next time and would be calling back next week.

She called me at work in tears, clearly the result the bailiffs wanted - maximum embarrassment and fear. The only saving grae was that the children were at school.

I need to call them tomorrow/Tuesday latest to somehow stop this from happening again but I know they will accept nothing but an enormous lump sum.

Can I simply say as before that this is a business debt, not personal and they cannot attend my house or take my car? Is there nothing legal I can quote to get them to back off or at least agree to a much reduced payment?

My fear is that these despicable people will appear at the house when my children are there alone and force their way in (my eldest sons come home from school on the bus and are often there for an hour or so before my wife gets back).

I'm having to tell my wife that we may need to move the car (our only one!) and even in hot weather we need to keep the windows closed etc. so that they can't get in. We can't live like this, can anyone help with advice please??

Thx

1mb

bargainbetty

I think you would need to speak to a business specialist, but my understanding is that a business debt lies with the limited company, and the director is not held personally accountable. This is why so many charlatans manage to open a business, run up debts, then close it and start again.

Is the business still trading? If so, the liability lives on and the baliffs will try every tactic possible to get you to pay. If you wind the company up as insolvent the debts die with it. (trading while insolvent used to be a corporate offence that could get you struck off from being a director). If it is still open, talk to Companies House about closing it down. I'm sorry, that might be the only way.

If you are determined to pay it off, then send a letter to the creditor offering a payment plan on company letterhead, and explain that any further attempts to obtain recompense from your family, including the harassment and intimidation of your wife and children, will be treated as criminal acts and the police will be called. Get a statement drawn up and notarised by a solicitor stating that all goods and property inside your main residence, and your car, are personal property and not assets of the company, therefore cannot be seized. Identify the old computer as the only remaining asset.

Speak to Companies House - they may be able to help.

Good luck x

NorthernLas

There is information on the website bailiffadvice online about HCEO fees. It says that they can force entry into a commercial property but ONLY if there is no living accommodation attached.

It says you can apply for a stay of execution from the court if you cannot pay.

(I am not associated with this website, I just found the information on it)

SouthCoast

Business Debtline can be contacted here:

http://www.bdl.org.uk/