Personal Debt and a Limited Company

tinyuk

Hi. I have a personal debt and today i spoke to a bailiff via the telephone because he came into my business premises yesterday and dropped of a letter.
My question is, my company is a Limited company. Can he take goods from my company to cover the ammount of the personal debt?

goingforward_3

No they cant because a limited company is a seperate entity to you.

I had a similar issue.. my business bank acc was with Natwest who i have personal debts with and i was worried that they could take money from the ltd co accounts to pay my personal debts but they arent allowed to do that.

tinyuk

Thats great to know. I have got peace of mind now.
So what options do i have. Can i arrange to make a payment to them weekly? but that wouldnt be much as i pay myself the minimum to be below the tax threshold and then claim a dividend to make up for it at the end of the year. Also other than my business, i have no assets other than a car.
Would i be better going straight to the company the debt is with and paying them direct? As i know they are willing to take payments from me. Would doing this negate the need for the bailiff?

Herbie21

tinyuk wrote: »

Thats great to know. I have got peace of mind now.
So what options do i have. Can i arrange to make a payment to them weekly? but that wouldnt be much as i pay myself the minimum to be below the tax threshold and then claim a dividend to make up for it at the end of the year. Also other than my business, i have no assets other than a car.
Would i be better going straight to the company the debt is with and paying them direct? As i know they are willing to take payments from me. Would doing this negate the need for the bailiff?

What does the debt relate to and are you sure a bailiff is enforcing it or could it be a firm of debt collectors. There is a BIG difference.

DarkConvict

I agree, you need to check if its a bailiff or debt collector.

I would assume a debt collector, as since the bailiffs would have a warrant to visit you at your home address, the one listed on court papers. I would highly doubt them to show up at your place of work.

TomMa_2

I have a similar issue. I have problems with personal debts due to the income I normally recieve through my limited company having fallen. I've haulted trading and signed on for jobseekers allowance whilst I try to find alternative employment. However my company still exists even if it isn't doing anything it still has assetts and I would like to return to it.

My personal debts aren't out of control, I'm not actually behind with anything yet but I expect to fall behind due to the lack of income. When this happens I understand from responses to the original post that the company's assets can't be claimed in respect of personal debts but can anyone direct the original poster and myself to a legal reference that confirms this.

The sad fact is its not enough to be right, you have to be able to proove it. If debt collectors appear at your place of work it can turn into a battle of wills but if you have a legal reference you can call the police and they are obliged to defend the law. Otherwise you can't always be assured that the a police officer won't ludge the law to be on the side of the collector.