We don’t just help with personal guarantee claims. We frequently help directors who have received a claim against them to repay an outstanding director’s loan account. During liquidation an overdrawn director’s loan account is an asset of the company and the director is personally responsible for repaying it.
The duty of the liquidator is to recover company assets for its creditors. Therefore, they will request repayment of any monies owed to the company. If repayment is not made then they will take legal action against the director. Legal action and its ultimate enforcement could potentially result in personal bankruptcy at which point all the director’s assets and property could be at risk.
If you are being pursued for an overdrawn Directors Loan Account, then Personal Guarantees UK can help. Here is a recent case study.
“Mr G received a claim from his Insolvency Practitioner during the liquidation of his construction company for £96,000. On receipt of this claim, Mr G assumed he would have to pay the entire amount and had no means with which to do this, at which point we were recommended to him. After we established how the claim was constructed, using our extensive insolvency knowledge we were able to challenge a portion of it through the identification of legitimate business expenses and further reduce the balance demanded by applying various company liabilities the director had paid personally and off setting funds owed to the director by the company which, the director was completely unaware he was entitled to.
Although we had already reduced the liability for Mr G, he was still unable to pay the amount now owed. We conducted a full in-depth analysis of his financial position, including his income, expenditure and assets and liabilities. Further to this we were able to calculate estimated outcome statements if legal action was taken against him.
Finally, we used the estimated outcome statement to submit a sensible commercial structured proposal to the Insolvency Practitioner and offered a lump sum settlement figure of £20,000 which was raised with some help from family to settle the liability. This figure was accepted, and the matter was closed allowing Mr G to move on and concentrate on his new endeavour.
As with every case we deal with, the outcome is always specific to the individual’s personal financial circumstances. This case study echoes that and should be taken as such”.
Whatever the claim is against you, we can help you understand your liability and navigate your way through these difficult times. The first step is the most crucial, ignoring the problem will not make it go away and we have the knowledge and expertise to help. Fill in the contact page on our website or get in touch at firstname.lastname@example.org or 0333 88001791 today.