Limited Company

need-advice

Hello,

I was hoping someone here might be able to give me some advice regarding Limited companies.

If I am the named director of a Limited company that goes bust, can my personal savings and assets be used to pay the debt?

I've researched a little and I've read that if it's a Limited company, your personal savings etc are safe, but I was hoping for some more advice.

Thanks in advance!

fishybusiness

Depends on so much.

Personal Guarantee's will null and void your get out.

Overdrawn Directors Loan account will too.

HMRC may want their slice of the cake.

Really depends on circumstances, what has been paid, what is outstanding and to who.

Hop over to the UK Business forums, there is a forum for insolvency, post more detail their, very helpful bunch.

Also look up The Spongebob plan - really!!

Savvy_Sue

Also note that if you are responsible for a Ltd Co trading while insolvent, I believe you can be held personally responsible, so it's definitely not a 'get out of jail free' card.

OP if you tell us what the situation is, you may get better advice. Have you set up this company and worried it might go bust, or are you thinking about one and wondering how best to proceed?

00ec25

as above:
- director's guarantee?
- overdrawn director's loan account?
- trading whilst insolvent?

note though that since 2002 (Enterprise Act) HMRC are no longer a preferential creditor. They must take their place in the queue along with everyone else as an unsecured creditor of the company's assets.