Overdrawn directors loan

nessytill

I ran a small limited business that went into voluntary liquidation after the Covid pandemic. I’ve now been asked to come up a payment for the overdrawn directors loan which I can’t afford to pay, the company dealing with the insolvency have mentioned taking equity out of my mortgage. I feel way out of my depth and don’t know where to get advice, the insolvency company obviously have a duty to get as much money from me as possible so can’t ask them for help. Can anyone point me in the right direction. Tia 

Hoenir

Do you have equity in your property that could be released by way of a loan (mortgage) to settle the debt? 

DE_612183

Businesses and Individuals are separate legal identities.

As the business is now insolvent - the IC will look to all those that owe the company money - so you will have to find the money somehow.

Did you take money out of the company during the pandemic because you were not trading?

I'm not sure if there is government help that can now be accessed as you could have done at the time.

Someone may well know the answer.

tacpot12

I woul start by calling National DebtLine and/or StepChange for advice. They also have websites where you might find useful information. 

Having a Statement of Affairs (SoA) ready when you call them might save time. You can use this format provide by Stepchange: budget-planner.pdf (stepchange.org)