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Could I lose my family home if my business goes into liquidation?

Your home usually isn’t at risk if your company goes into liquidation, it is a personal asset and belongs to you, not the company. However, certain instances exist where your family home could be at risk and not protected by the corporate veil of limited liability.

  1. Personal Guarantee – If you guaranteed a business loan personally then the lender will pursue you personally to recover what is owed. This will include your family home and any other personal assets held.


  1. Misfeasance – Typically preferential payments, insolvently trading, under value transactions and illegal dividends. If it is proven that you have done any of these then you can be held personally liable for some or all of the company debt.


  1. Overdrawn Directors Loan  – In the event of insolvency your Directors Loan will be considered an asset of the company, and the Insolvency Practitioner will seek to recover the debt personally from you.


The threat of loss of the family home is one of if not the biggest concerns for company directors going through insolvency. We can help you understand your personal liabilities 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 or  0333 88001791 today.

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