Very confused.

sjr13

I don't know if this is the right place to post but it's bankruptcy related and I would be very grateful for any advice please.

My boyfriend and I started a business in 2006, my Mother, myself and my boyfriends father all loaned the company various amounts to get started.

Unfortunately the business failed in 2008, the company was shut down and my boyfriend went personally bankrupt. My Mother and myself resigned oursleves to the fact that we weren't getting our money back and moved on but my boyfriends father started demanding his money back from ME personally.

He is now saying it was a personal loan to ME but this isn't true, the cheque was paid into the business bank account and was listed on the company accounts for two years, he was also the chairman of the company and would have seen this.

He told my boyfriend not to include him on the bankruptcy as "you don't list family" and since then writes to me periodically making demands.

I mistakenly assumed that I had to pay it back and started making personal payments for a few months but then had cash flow problems and asked for a break which he agreed to, he assumed that the few months break ended in July 2009 and started making demands again, I went to the Citizens Advice Beaureau and they said I wasn't personally responsible for a debt to a limited company and that I didn't have to pay it.

He wrote to me yesterday saying that if I don't pay him he will apply to the Official Receiver and get him to sort this out, I didn't go bankrupt though so I am assuming that he will not get any joy there.

Everyone has been telling me to ignore him but I am not clear on my legal position here and don't know which way to turn.

NittyGritty

try ringing CCCS or the citizen advice they will give you sound advice on things

JCS1

What legal set up was the company? Limited, sole trader, partneship? And were any loan documents drawn up?

sjr13

JCS1 wrote: »

What legal set up was the company? Limited, sole trader, partneship? And were any loan documents drawn up?

It was a Limited company.

Initially me, my boyfriend and my boyfriends father were all directors with my boyfriends father also being the chairman. A few months before the business got into difficulties my boyfriends father decided that he didn't want to be involved anymore and thought my boyfriend should be a sole trader so he and I were removed from the directors.

No loan documents were drawn up for this loan to the company, it was an informal thing, same as with the funds I and my Mother loaned, my Mother has the view that I got my inheritance early and doesn't want it back.

Thank you for taking the time to read my post and I am very grateful for you listening to me, I am wondering if I should contact the CAB again or a solicitor?

alastairq

I went to the Citizens Advice Beaureau and they said I wasn't personally responsible for a debt to a limited company and that I didn't have to pay it.

seems you have made a start in that direction....well done.

Was the business a ''limited company?''

I mistakenly assumed that I had to pay it back and started making personal payments for a few months

I would be inclined to demand he return any payments you made to him.

Sounds like he persuaded you to pay under false pretences........would that be ''fraud?''

Might be worth enquiring of a solicitor?

Sounds like he's playing on your high moral sense of responsibility.


If the company went into liquidation....ie assets sold off to pay creditors.....exactly what sort of financial responsibility do you think you have, that he doesn't?

After all, you do say he was ''chairman'' of the failed company?


Positively demand he consults the OR....let him even go to the expense of taking you to Court, if need be.

If he is correct in his assertions, then the OR will let you know...or a Court would reach a decision.

In such an event, if you are deemed to 'owe', then there are processes in place to allow you to pay, no more than you can afford.

If you are not deemed to 'owe', then he needs to refund payments already made.......and may be it would be worth lodging a complaint with the Police?


Or...if that's too much hassle, simply give the digital signature and ignore him??

sjr13

Thank you for reading my post alistairq, I think he is trying to put the wind up me mentioning the OR, perhaps I should tell him to approach him and we'll see what the OR says.

He says he has lodged a copy of his most recent letter to me with his solicitor but I don't think I believe him, I think he is trying to put the frighteners on me and I really don't think any solicitor would approve of him sending such nasty letters to me.

Friends keep telling me to call his bluff but I am not that kind of person, I do have high responsibility and will pay if I owe but I am loath to pay if this man is trying to get the money under false pretences, after all, he was a director of the company too.

Thank you again.:)

debtinfo

Was the cheque written out to you or to the limited company name, was the bank account in the limited company name, if both were than the loan was to the limited company and the default position with no other documents is that the debt died with the company

sjr13

debtinfo wrote: »

Was the cheque written out to you or to the limited company name, was the bank account in the limited company name, if both were than the loan was to the limited company and the default position with no other documents is that the debt died with the company

Yes the cheque was made payable to the limited company and it was paid into the company bank account, I have copies of the paying in slip and the bank statement (ex-bank employee I copy everything) but I didn't take a copy of the cheque, although I guess I could get a copy from the bank if I need to?

debtinfo

Then that is the nature of the limited company, the liability is limited to the company, not you, I would write and point this out to him, he probably is trying it on as he probably doesnt think that you know what your rights are.

As far as the OR is concerned, they will tell him to go away as the OR's job will be specifically in relation to your boyfriends personal bankruptcy, not the limited company and not you.

sjr13

debtinfo wrote: »

Then that is the nature of the limited company, the liability is limited to the company, not you, I would write and point this out to him, he probably is trying it on as he probably doesnt think that you know what your rights are.

As far as the OR is concerned, they will tell him to go away as the OR's job will be specifically in relation to your boyfriends personal bankruptcy, not the limited company and not you.

Thank you debtinfo, you have no idea how much help you guys are being, I might get some sleep tonight! :A

I have also tried the CCCS link on here and asked a question, it's a big long winded and confusing but even typing it all out cleared my head a bit!

josie836

If he did contact then or surely he would be in danger of getting himself and his son into trouble as he specifically told his son not to enter the loan into his bankcruptcy.
Maybe you and your mum could claim the amounts you paid into the company from him as that seems to be the logical progression from this kind of thinking.
Also as you all resigned from the company and left his son as sole trader surely that makes him responsible for all the finances. It should be his son who is paying back the money and as a sole trader all the loans should have been entered into his bankruptcy.