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Ash
Ash, Solicitor
Category: Law
Satisfied Customers: 10916
Experience:  Solicitor with 5+ years experience
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I am now the sole Director of a small Ltd Company working in

Resolved Question:

I am now the sole Director of a small Ltd Company working in the construction industry for domestic clients. For 4 years my fiancé and I were Directors with a 99/1 share split. Myself having the largest share. The relationship ended in Dec 2014. During the time she was a Director she had a high earning PAYE job elsewhere and is still employed there. She willingly supported the business personally . The value of her Directors Loan Account is £19k and she is demanding it back, however, the business cannot afford to repay it and she is threatening to take me to court. What would the outcome be ? Is she legally entitled to it ? She wants to take me to court personally so could she make me bankrupt ?Also part of the 19k of which 8k where for van payments the van was in her name
Submitted: 2 years ago.
Category: Law
Expert:  Ash replied 2 years ago.
Hello my name is ***** ***** I will help you with this.
Do you have a Director agreement? Does the company have any real assets?
Customer: replied 2 years ago.

Hello Alex

The answer to your questions are no to both there is no agreement or any real assets

Expert:  Ash replied 2 years ago.
I assume you accept she is owed £19k?
Customer: replied 2 years ago.
That is the balance of her directors loan account
Expert:  Ash replied 2 years ago.
I would not worry. If you can't pay if you can't pay it. If the company has no assets then it can't really be enforced.
If you owe it you can't stop her taking it to court. But you can offer to pay by monthly instalments. You can only pay what you can afford.
If there are no assets there is no other way of making you pay.
But don't take this as a threat, it's only worth going to court if the business has the means to pay.
Can I clarify anything for you about this today please?
Alex
Ash and other Law Specialists are ready to help you
Expert:  Ash replied 2 years ago.
Hi

I am just following up on this. Is there anything else I can help with? If so, please let me know.

Alex.