Personal loan put through limited company

Vivagoon

Hi everyone! A bit of advice please! My girlfriend used to run a limited company with her ex. For the last couple of years, her ex has been running the business on his own. Last year she took out a personal loan to finance the purchase of a new car for her ex to use for business purposes. She did this on the understanding that her ex would put the loan through the business, he would ensure the business paid the loan installments and that any liability would rest with the company. Fast forward to the present and she has been getting letters to her personal address from the loan company saying the loan has not been paid for months and they want to repossess the car. The ex has also told her that the company is going into liquidation. Does this mean that my girlfriend is now personally liable for the loan debt?

[Deleted User]

If the loan is in her name, then yes.

Caz3121

Vivagoon wrote: »

she took out a personal loan

she has been getting letters to her personal address from the loan company saying the loan has not been paid for months and they want to repossess the car.

As a personal loan, it was always down to her to ensure that the payments were made each month. Unfortunately it is likely that, in addition to owing this money, this will likely have had a negative impact on her credit record

foxy-stoat

If your girlfriend wants to keep her credit file for being trashed further, get the loan payments upto date and ask for a settlement figure.

Then go collect her car.

If she can sell the car to clear the loan then do that, if there is a shortfall then she needs to raise this and make a payment so she can sell the car.

Either forget about it or take her ex to the small claims court, if there is something in writing detailing the agreement. This may be tricky as the ex may not have any money or income if he has wound the business up.

This is still a personal debt for your girlfriend.

Good luck.

Ebe_Scrooge

Spam from Kaleb93 reported.

Solus

Your girlfriend would have been liable for the loan whether or not the loan was put through the company as it's under her own name. So yes she is still liable. Good luck and all the best.