Company directors legal responsibility for debt.

[steve@black]

I've recently had to take legal action against a limited company for a debt . They have not disputed they owe the debt but I'm getting g fobbed off left right and center so official it has to be . 

One of the directors of the company has just resigned and I am  guessing to let the other take the responsibility of the debt . Because this is a limited company is this OK and he can just wash his hands of it and move on . Am I right to think this ? 

[GarethM]

Short answer yes, as the debt is against the company and not a specific person.

 

How much are we talking?, Small claims court is the cheapest option after a snotty letter.

Edited August 8, 2022 by GarethM

[steve@black]

Way too much for small claims , I will follow it until they are shut down if I have to . Every now and again you get a kick in the knackers like this and it just makes you a little harder nosed . 

[GarethM]

Plenty of information on the country court, but guess it's in the 5% fee range.

 

You've lost nothing for trying, but you might get payment once the first court letter from arrives on their desk.

 

Just follow the process to the letter and they might default in your favour providing you do everything right.

[Retired Climber]

The first thing to do is to work out if they unwilling or unable to pay. If the former, hit them hard ( in a legal sense); if the latter, well, you can't get blood out of a stone. 

Do you have PGs for the debt, or is it a case of get it from the Ltd, or get nothing? 

[monkeybusiness]

I’m not saying you should contact this guy…

 

[steve@black]

That is a funny video mate I should contact him . Retired climber you're right I can't get blood out of a stone but this company has some serious backing so it will be interesting how far they will let it fall . I can't believe there is no issues for directors . Surely if they are made to go bankrupt it would affect further business .I am asked if this has ever happened when getting finance or insurance ect . Is it a question wit no real consequence?

[Retired Climber]

17 minutes ago, steve@black said:

That is a funny video mate I should contact him . Retired climber you're right I can't get blood out of a stone but this company has some serious backing so it will be interesting how far they will let it fall . I can't believe there is no issues for directors . Surely if they are made to go bankrupt it would affect further business .I am asked if this has ever happened when getting finance or insurance ect . Is it a question wit no real consequence?

A company can't go bankrupt. Is the debt at a level that would make Phoenixing a consideration, or it it more of a nuisance amount? 

[Steve Bullman]

3 hours ago, Retired Climber said:

you can't get blood out of a stone. 

I said this to a debt collector once, his reply ‘you’d be surprised how much blood my guys can get out of a stone’ 😀

[Retired Climber]

3 minutes ago, Steve Bullman said:

I said this to a debt collector once, his reply ‘you’d be surprised how much blood my guys can get out of a stone’ 😀

That's why the OP needs to decide for himself whether they are unable or unwilling. Many people will pretend to be a stone, until 'squeezed'.