Can I transfer personal debt onto company debt?

damianmarksmyth

I have racked up thousands in personal debt in trying to get a company off the ground. Having just been told I can wind up the company and write off the debt, can I transfer any of the personal debt onto the company first, especially as it has been what's been keeping it going? Thanks

Boris_Allen

No .

happycamel_2

No, it's a director's loan and they come last in the list for repayment when a company winds up. If the company can't pay you back then I'm afraid you're an unsecured creditor and won't be repaid.

If it was a limited liability company then it can be wound up without repaying it's debts and without the owners becoming responsible for the debts (hence limited liability).

houseiseverything

You will end up with the debt I'm afraid. This happened to me last week-( my partners business and his personal debt, nothing to do with me but I will have to pay it off now he has no income). Please, to save yourself the heartache I have been through in the last 2 weeks, contact the Business Debt Line, part of National Debtline. They are fabulously helpful and will go through the options with you. We had spent 2 weeks trying to remortgage the house, borrow the money etc, and I really wish I had called them first. There is a lot of heartache yet to come but at least we now have a plan.

damianmarksmyth

Both the company and the personal debt are both mine. The question is, can I transfer the personal debt to the company, then write it off. Sorry for the person who said 'No', this is a reply to the other answers...

houseiseverything

Again, the answer is no. If your company was limited liability the the debts in the company name will be written off, but any debt in your name (or personally guaranteed by you) cannot be transfered to the company and therefor can't be written off. I sympathise with you, as you used the money to try to build your business, but it is a separate debt to any company debt.

arcon5

damianmarksmyth wrote: »

Both the company and the personal debt are both mine. The question is, can I transfer the personal debt to the company, then write it off. Sorry for the person who said 'No', this is a reply to the other answers...

No, the company debt belongs to the company. Your personal debt (irrespective of how it was spent) belongs to you. You and the company are separate legal entities.

You can only transfer the personal debt to the company if the creditor agrees - however this is not going to happen, no creditor would agree to transfer the debt to a company, this increasing the risk significantly when they can hold an individual liable

forgotmyname

Sorry to ask on your thread. But if the OP was to go bankrupt would he have to do that twice?

Once for the business and another for himself?

Looking to go self emplyed but rent for small to medium sized units are silly money around here.

pelirocco

forgotmyname wrote: »

Sorry to ask on your thread. But if the OP was to go bankrupt would he have to do that twice?

Once for the business and another for himself?

Looking to go self emplyed but rent for small to medium sized units are silly money around here.

The company would have to be wound up , if he wishes to go bankrupt thats a separate issue

downnotout

Personal debt is just that, personal debt. I am 4 years down the line, I tried everything to shift something over to the company that folded, but NOTHING could be transfered.