default with ltd company

michaeltoogood

hi everyone
i am a mortgage adviser running my limited company since many years. coz of corona virus the income is down to 0. my personal credit card and overdraft laiability is 40k and business company liability is 20k. if my company gets default i will lose the license, but if i default on my personal credit cards, i will not lose my fca license and can carry on with my work after the virus settle down.

my confusion is if i stop my personal credit card payments would it eventually close my company account which is with barclays ( i will not stop any payment of barclay)?

if i do not enter into dmp, rather simply stop my personal payments and see what happens, if company threats me of court i can bargain with them to pay half or less of my liability.
i would be very gratful if some one can advice me what to do to save money on interest as well save my fca license and job

[Deleted User]

Have you spoken to business debt line (or similar)? They should be able to assist you.

These are just my thoughts, but I'm not experienced in that area. You'd really need to refer to your account T&Cs to be sure (or speak to a charity, or maybe even the bank themselves) - they may offer you payment holidays etc. which then at least shows a willingness to repay (rather than straight defaulting). It would then be extremely harsh for them to revoke your business facilities if your personal account(s) are operating in line with the agreed forbearance. 

As the business is Limited, I wouldn't think they could come after Ltd Company assets - but they can of course review the limited company's relationship / your business risk rating (and your personal credit file may well play a part in that, especially if you have defaults/DMP or similar - and even more so if it's with that lender!). 

I personally don't think they could 'raid' the business account or similar to get the cash - but they may well say they don't want your Ltd Company business anymore. Meaning you have to apply elsewhere (and when you do, you'll probably be both business and personal credit checked, as a majority shareholder).

I'm surprised FCA will allow personal defaults. Are you sure that's right? Do they not do ongoing reviews of the firms and their directors??? I genuinely don't know, but it seems shocking to me if you could personally go bankrupt or owe stacks of debt but be considered fit and proper (since you already have a licence), but the 'company' and new applicants are subject to much stricter rules.