question category: Debt Collectors

can a creditor touch assets/money of my limited company depite the debt being a personal one
Submitted on: 25th Nov 2009 by Non-Member | Total Answers: 1

I owe a buiding society some money as a result of a shortfall from their sale of my property. I am looking to set up a limited liability company and will be the director of the said company. will the building society have a right to demand money from, or be able to "touch" the assets/profit of the company?

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Re: can a creditor touch assets/money of my limited company ...

If the creditors take court action against you - they can only "touch" assets you have a personal interest in - including your income from the company or any assets you hold jointly with the company..

So the company would have its own assets and these shouldn't be "touched" by your personal creditors unless they can make a case to court that you are hiding your assets from them.

You should be aware that if the building society makes you bankrupt - you will not be allowed to act as a director and the company will usually be wound up.

If you want to give us more details or ask more specific questions about debt, click on my name and contact Debt Advice Foundation.

Submitted on: 27th Nov 2009 by Darren Member

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