British Gas Debt for Limited Company

bagpuss409

Hello, I wonder if anyone can offer me any advice on the following.

Back in 2004 my ex-husband and I set up a limited company, he was MD and I was Company Secretary. Due to marriage breakdown I resigned as Company Secretary in December 2010 whilst I was on maternity leave.

The company had a monthly direct debit mandate set up to pay British Gas for gas and electric which to the best of my knowledge was still being paid at the time I resigned.

The business address was a terraced house, not the family home, and after the marriage breakdown my husband moved into the business address in December 2010 and in April 2011 was declared bankrupt. This week he moved out of the business address as it is being repossessed.

It is my understanding that my ex-husband resigned as a director of the business as part of his bankruptcy - he was the only person working for the company by that time - therefore the company now no longer had any directors listed.

Whilst I continued to live in the family home I could not afford to pay the mortgage and the family home was repossessed in October 2011 and I am currently living in rented with my children.

I have now received a letter for a company called LCS addressed to me personally c/o the company name, chasing a debt of £898.15 which is for the period 5.11.07 to 31.10.11. In the letter they state that if the debt is unpaid they can apply for a winding up order, seize goods, or apply for a CCJ.

My question is - do the above actions apply to the company or to me personally? Does the fact that the debt is against a limited company provide me personally with any protection or am I responsible.

The other issue I have is that I know that for 2007 - 2010 the direct debits were definately being paid, however I do not know if my husband continued to pay this after he moved into the premises.

I have already taken on the £12k overdraft that was outstanding as my husband was bankrupt at that time and I had jointly signed for the overdraft, but I am not particularly happy about having to take on any additional debt - especially as I was not responsible for it.

Any advice and guidance would be greatly appreciated.

macman

No you are not responsible for a company debt. But you don't make it clear if the company has been wound up or not (you just said that your husband has been made bankrupt). If the company is insolvent and no longer trading, then any creditors should be referred to the administrators.

bagpuss409

Hi Macman,

Thank you for your reply. I know the company is no longer trading and that part my ex-husbands bankrupcy involved the company. The company is currently listed on Companies House as "proposed to strike off". Other than that I don't know if the company has been officially wound up.

Once again thanks for your reply

macman

Either way it's not your debt.
Your husband's bankruptcy would not directly affect the company though-the company could still be trading regardless of that.

Premier_2

bagpuss409 wrote: »

Hello, I wonder if anyone can offer me any advice on the following.

Back in 2004 my ex-husband and I set up a limited company, he was MD and I was Company Secretary. Due to marriage breakdown I resigned as Company Secretary in December 2010 whilst I was on maternity leave.

The company had a monthly direct debit mandate set up to pay British Gas for gas and electric which to the best of my knowledge was still being paid at the time I resigned.

The business address was a terraced house, not the family home, and after the marriage breakdown my husband moved into the business address in December 2010 and in April 2011 was declared bankrupt. This week he moved out of the business address as it is being repossessed.

It is my understanding that my ex-husband resigned as a director of the business as part of his bankruptcy - he was the only person working for the company by that time - therefore the company now no longer had any directors listed.

Whilst I continued to live in the family home I could not afford to pay the mortgage and the family home was repossessed in October 2011 and I am currently living in rented with my children.

I have now received a letter for a company called LCS addressed to me personally c/o the company name, chasing a debt of £898.15 which is for the period 5.11.07 to 31.10.11. In the letter they state that if the debt is unpaid they can apply for a winding up order, seize goods, or apply for a CCJ.

My question is - do the above actions apply to the company or to me personally? Does the fact that the debt is against a limited company provide me personally with any protection or am I responsible.

The other issue I have is that I know that for 2007 - 2010 the direct debits were definately being paid, however I do not know if my husband continued to pay this after he moved into the premises.

I have already taken on the £12k overdraft that was outstanding as my husband was bankrupt at that time and I had jointly signed for the overdraft, but I am not particularly happy about having to take on any additional debt - especially as I was not responsible for it.

Any advice and guidance would be greatly appreciated.

A company cannot exist without a director and therefore, as your husband is no longer fit to be one, the shareholders should appoint a suitable director.

If you don't, CH will probably attempt to have the company struck off, but I suspect that will be blocked by British Gas as a creditor.

Edit: Just seen you say there is already a proposal to strike off the company. Presumably this has come from CH, but I'm sure BG if they become aware will attempt to stop this until they get paid.

Premier_2

bagpuss409 wrote: »

Hi Macman,

Thank you for your reply. I know the company is no longer trading and that part my ex-husbands bankrupcy involved the company. The company is currently listed on Companies House as "proposed to strike off". Other than that I don't know if the company has been officially wound up.

Once again thanks for your reply

A company cannot be included in a personal bankrupty; they are two different legal entities.

Individuals can be made bankrupt; Companies can not (the equivilent would probably be liquidation)

I think you should seek independent legal advice over the company and it's present position.

Taiko

If it comes to it, also worth checking records for payments made to BG if you can.

I can speak from experience here that they do seem to have problems allocating payments at times, although that may be because where I'm based sends a remittance and one bulk payment for multiple accounts.

macman

The OP said she was a director but resigned-we have no idea if she is also a shareholder. Regardless, she has no responsibility for any company debts.
The company may have appointed new directors.