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Directors Loan Account Claims

Once your company has gone into liquidation you may end up facing a claim from the insolvency practitioner.

Overdrawn directors loan account claims are the most common claim brought by insolvency practitioners.

What is an Overdrawn Directors Loan Account

Other than non business expenses being drawn the most common reason for an over drawn directors loan account is due to how salary has been taken. Directors are often advised to draw funds out of their company by way of dividend, rather than salary, for tax reasons. Funds are drawn over the course of the year and a dividend is paid at the end of the year clearing the overdrawn loan account – simple. However, dividends can only be paid out if there are profits – no profits, no dividends.

If no dividend, or insufficient dividends are paid, the director remains liable to the company to pay back the funds taken.

The Insolvency Practitioner will be requesting repayment of the amount outstanding and agreement will need to be reached to avoid legal action being taken.

Proven approach and methodology

Valid directors loan account claims are settled based on your own unique personal financial circumstances.

Knowing how to assess your income/expenditure and assets/liabilities and packaging these in a way to allow insolvency practitioners to make informed decisions on the level of your offer to settle is key.

Producing properly calculated estimated outcome statements in the event of legal action further validate and set the level of offer to be made.

Personal Guarantees UK have a set methodology and approach which is proven to get you the best outcome possible.

Your directors loan account claim could not be in better hands

Personal Guarantees UK have the insolvency knowledge and qualifications to ensure the best possible outcome for you. Following the initial free consultation once instructed our service to you includes:

  • Checking the validity of the directors loan account claim and how it is calculated
  • Review of what can be set off against it to reduce the claim
  • Full assessment of your financial circumstances
  • Management of all correspondence and advice on the same
  • Production of settlement proposals and submission to insolvency practitioner
  • Explanation of any legal action threatened and how to respond
  • Negotiation of the claim through to completion
  • Advice on formal personal insolvency options if circumstances dictate they are the best option


Once engaged the Personal Guarantees UK team are on your side and can draw on over 40 years of insolvency experience.

Trusted by hundreds of clients throughout the whole of the UK

"Having an ex insolvency practitioner in my corner who knew how to deal with the claim against me and how insolvency practices worked was invalid to achieve the best possible deal. Having so much experience on your side for such a reasonable fee was a no brainer."