|
|
| The independent answer to your debt problems | login join |
|
jimmuk
| 02-06-2008 10:06 PM |
|
Joined: 02 Jun 2008 Posts: 2 | Hi all, I have some concerns regarding the liability of my wife if I should proceed with sequestration. I am Director of a limited company and my wife is Secretary. The company has all but failed and the level of debt is around £30,000 Most of the debts are my sole responsibility such as personal credit cards, personal bank loan etc with some minor supplier bills of around £1000 being the responsibility of the limited company. If I proceed to sequestration will my wife have the same liabilities as myself for the debts of the company? As our house is in my wife's name I do not wish to put this at risk if I have to go this route. Our repayment position is hopeless although I have come to an agreement with a couple of creditors to repay at a much reduced level - albeit it will take 10 years to pay off. Most creditors are threatening but not proceeding with court action at the moment - can I assume I cannot seek sequestration until one of these creditors actually takes me to court? Is sequestration my best option or should I try to come to terms with all of the creditors even though I will be paying them for 10 to 15 years to clear the debt at the level I can afford right now? Sorry if this is a little long winded but any and all advice will be gratefully received.. Jimmuk |
| paladin | 03-06-2008 11:42 AM |
|
Joined: 06 Jun 2007 Posts: 77 My Profile | Morning Jimmuk Welcome to the forum. You raise a few issues in your post. Firstly, you say that your business has failed with debts of around £30k, but then go on to say that the company only has debts of £1k. This is confusing, what are the debts of the business, £30k or £1k. Is the business failing with £1k of debt? Before we can give any more advice can you clarify the financial situation of the business. Is the business failing because you can't earn a living from it, living off credit cards? Or is the business failing because you can't pay your credits? Your personal loans and credit card debts are not the responsibility of your company or you wife, there yours. For these personal debts you have a range of options, Protect Trust Deeds, Debt Arrangement Scheme or debt consolidation. Post back with more information. Make sure to clearly separate what are your debts and what are the company's. Speak to you soon P |
|
jimmuk
| 03-06-2008 06:53 PM |
|
Joined: 02 Jun 2008 Posts: 2 | Hi Paladin and thanks for your prompt response to my inquiry. Sorry if I have left any confusion but the situation is as follows: The limited company has all but ceased trading as I have taken a full time job to bring in sufficient income to pay the bills and clear the debt and I simply don't have the time anymore to devote to the company business. The company owes a few creditors around £1000 but the bulk of the £30000 is my own personal debt which was incurred in trying to keep the company going by using credit cards and taking a personal bank loan. If I seek sequesration the company would cease as I could no longer operate as its director and its not worth trying to sell on as a going concern. If I read your remaks correctly it appears my wife would not be liable in any way for my personal debt but I am worried that her duties as company secretary would leave her open to some liability. Can you clarfiy my thinking if you would? thanks for your assistance. jimmuk |
| DW George | 03-06-2008 08:15 PM |
|
Joined: 01 May 2007 Posts: 174 My Profile | Hi Jimmuk I take it you live in Scotland. Paladin never asked you. If you have been bailing out the company with personal loans then only you are liable for the debts. Sequestration is not your only solution, you can enter into a Protected Trust Deed, Debt Arrangement Scheme (similar to a Debt Management Plan) failing that a Debt Management Plan. With sequestration and protected trust deed you cannot remain as company director. With the new sequestration laws you can either wait for a creditor to take action against you or petition for sequestration yourself. Lets us know if you need more information. George |
