Whats My Chances

MARTIN_2-3

Hello people

I've a question hopefully one of you may be able to answer ?

i run a company ( ltd) and a couple of years ago myself and my business partner had to take out a 30,000 pounds loan, which we had to sign as Gurantees. Any way the loan is now down to 15,000 pounds and the company is not in a great position. Anyway my question is if the company were to close up could this very large high street bank come after me for the remainded of the load ??? i've spoke to a few people ( one of which being a x bank manager ) who said that the bank would'nt bother chasing the debt, but i would like to know if this is the case.

any views would be Appreciated

Kinds Regards

Martin

rande169

As I understand it, if you are a limited company, then effectively the company is liable for any debts. However, depending on the situation, the debts are or can be transferred to the directors (or partners) of the company which I am guessing is you and your partner. The bank will chase the outstanding loan, and you will need to check that it hasn't been secured against the business premises or worst still, your home.

Try these websites for help:
http://www.companieshouse.gov.uk/about/gbhtml/gb02.shtml
http://www.startups.co.uk/Setting_up_a_limited_company.Yb62e40.html