Charge on a Property

MrCosmick

Can anyone please advise?

In 2007 I was a co-director of a limited company (Company A), there were 3 directors in total. Part of the business was funded by the way of leasing companies, we were jointly and severally liable.

Unfortunately the recession hit and we had a disagreement, whereby I left the Company. The remaining two directors started a new company (Company and continued to pay the repayments to the leasing companies originally taken out by Company A and use the equipment obtained through leasing.

The Company A was liquidated Oct 2009.

Within a short period Company B also ran into financial problems and had to be closed (not too sure how or when this was done)

In 2009 & 2010 I received CCJ’s for the debts of Company A, 3 in total (about 42k) and charges against my house, foolishly I did not appeal the charges.

The mortgage is only in my name but my wife has been contributing to the mortgage repayments.

I have recently found out that two of my three charges are also on the property of one of the other directors. The third director knew what was happening and went bankrupt before any charges could be added.

I therefore have the following questions:

a) Are the leasing Companies still able to hold me liable even though they took payments from a newly formed Company, could this been seen as overriding the previous agreement.

b) Does my wife have a legal right to a percentage of the equity therefore the charges can only be on my percentage of the equity?

c) Why are the charges duplicated on two director’s property and can we combine our resources and offer a full and final settlement figure to the leasing Companies?

Thank you for any advice or pointers...

National_Debtline

Hello there, sorry to learn of the situation.

a) Are the leasing Companies still able to hold me liable even though they took payments from a newly formed Company, could this been seen as overriding the previous agreement.

That's a good question, and one that I do not know the answer to. You may wish to run it by our sister organisation, Business Debtline, on 0800 197 6026.

b) Does my wife have a legal right to a percentage of the equity therefore the charges can only be on my percentage of the equity?

This may be possible as she could be building up a 'beneficial interest' by contributing. Although she may not be on the title deeds she could have an 'equitable' interest. This is a complex area, do consider seeking legal advice on that point.

c) Why are the charges duplicated on two director’s property and can we combine our resources and offer a full and final settlement figure to the leasing Companies?

Thats generally how they are registered. Payments by anyone should reduce the amount held under all charges by the same amount. You can certainly look to combine resources although it could be tricky to obtain a full & final settlement against a debt which is secured by way of a charging order - although not impossible.

Really hope this information helps!

Best wishes,

David @ National Debtline.