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Vineet S
Vineet S,
Category: Law
Satisfied Customers: 3087
Experience:  Freelance Solicitor at Self Employed
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A debt collector is chasing me at my personal address for

Customer Question

Hi - a debt collector is chasing me at my personal address for debt owed to a limited company (I'm the director). what powers do they have to take my property?
JA: Where are you? It matters because laws vary by location.
Customer: london, uk
JA: What steps have you taken so far?
Customer: none
JA: Is there anything else the Lawyer should know before I connect you? Rest assured that they'll be able to help you.
Customer: no
Submitted: 20 days ago.
Category: Law
Expert:  Vineet S replied 20 days ago.

Welcome to Just Answer, I am a solicitor in England and Wales and I will be dealing with your case today.

Kindly note, I am not available for phone calls at the moment, however I can easily assist you via this online chat.

I will go through your question and will get back to you with my answer shortly.

Meanwhile, please ignore any phone call request pop-up, they get generated automatically without any input from the expert, so I have no control over these requests.

Customer: replied 20 days ago.
sure - thanks vineet
Expert:  Vineet S replied 20 days ago.

Hi there,

Company's director is not personally liable for company's debt. A limited company is classed as a separate entity to the directors and shareholders who are associated with it.

Directors cannot be held personally liable or responsible for the debts of a limited company unless they have signed personal guarantees.

A Director would be only personally responsible for the company's debt only if-

  • If Director has signed a personal guarantee, you will be liable for the debt if the company cannot meet its obligations.
  • Trading whilst insolvent occurs when a company continues trading while the directors know it’s insolvent, increasing its deficit. If, as director, you allowed this, or have failed in your duties as a director, you may lose the protection of limited liability and be held liable for some company debt
  • have borrowed money from the company which has not been repaid, and as a result, you have an “overdrawn” director’s loan account, then a liquidator could pursue you to recover the amount.
Expert:  Vineet S replied 20 days ago.

& If, as a director, you are found to be personally liable for company debts, then just like any personal debts, you will be responsible for their repayment.

Expert:  Vineet S replied 20 days ago.

If you need further assistance, please let me know.

In the meantime, thank you for using Just Answers. Best wishes.