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Max Lowry
Max Lowry, Advocate
Category: Law
Satisfied Customers: 1457
Experience:  LLB, 10 years post qualification experience
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is a company director responsible for post liquidation debts

Customer Question

is a company director responsible for post liquidation debts on a company that has been liquidated
Submitted: 3 years ago.
Category: Law
Expert:  Max Lowry replied 3 years ago.
Hi, welcome to the site. My name is ***** ***** I will help you with your question. In short, the answer is you are not liable for the company's debts unless for instance you signed a personal guarantee for example. Also, if you are found to have been found guilty of wrongful trading then you could be asked to contribute towards the debts of the company. Sometimes, directors can be held liable for the debts of a company if the director traded it under a similar name of another company which has gone bust (claim under section 216 of the Insolvency Act) unless the alleged debt you are being chased for falls into these categories you should be denying the claim.
Customer: replied 3 years ago.

Hi, this collection agency is saying that this is POST liquidation debt that has arisen after liquidation and it relates to telephone line rentals following the liquidation and that as the director didn't inform them that the company had liquidated then the line rental transfers to them !! Is this the case ?

Expert:  Max Lowry replied 3 years ago.
Hiya, this doesn't sound right. I am assuming from what you say that the company had the contract with the telephone company. If this is the case, I would find it very unusual that in default of the company paying the rental the liability rests with a director (unless the director guaranteed the debt). If you have a copy of the terms of conditions that were signed on behalf of the company that will say who is liable.
The whole purpose of acting through a limited company is that the directors are not personally liable for its debts.
To be honest, I have heard similar things like this before. It sounds like it's a try on. Ask for evidence that the debt is owed and if they can't provide it say you will make a complaint to the Office of Fair Trading and Trading Standards for harassment.
Customer: replied 3 years ago.

Hi, thanks, ***** ***** asked for copy invoices and they are reluctant to give them saying the client has them, and are saying as this relates to debt post liquidation it has been transferred into the directors name

Expert:  Max Lowry replied 3 years ago.
Ok, that sounds even more unlikely that you owe any money if they can't /are unwilling to prove it.
Have a look at the sample letter at the link
Amend the letter as appropriate and send it off. Make sure you keep copies of all the correspondence.