View Full Version : Debt Liability for a closed Ltd Company
Jonny Thwaites
9th December 2009, 10:31
Hi
I had a limited company a few years ago which has now been closed down. A company is chasing an invoice that wasn't paid from 2005.
Am I liable for this?
Many thanks
Jonny
John Mansley
9th December 2009, 11:02
In short, no. The only way you become liable for the company's debts is if you personally guarantee them or it is proven that you have traded wrongfully or fraudulently.
I suspect if you say the company has been dissolved for four years they'll try it on and insist you pay the debt but they have no legal grounds for doing so.
OldWelshGuy
9th December 2009, 11:08
When you closed the company, you would have had to state the outstanding debt. So the answer isn't black and white, it is 'it depends'. If someone loses out because of negligence (or fraud) then while they can't chase the actual debt, they would I believe have the right to chase compensation equal to that amount plus additional items.
Wild Goose
9th December 2009, 11:12
So following on from what OWG says, did you close the company or was it struck off by the Registrar of Companies?
Jonny Thwaites
9th December 2009, 13:49
I thought closing the company was the same as being struck-off? excuse my ignorance..
I voluntarily closed the company as no work was going through it. The invoice in question I thought had been paid as I had sent a cheque, although on checking my old statements it doesn't look like it came out. I therefore closed the company stating that, to my knowledge, no debts were outstanding.
elainec100@cheapaccounting
9th December 2009, 14:23
blimey - there accounting system must be rubbish if they didn't cash the cheque and haven't chased you since!
Jonny Thwaites
9th December 2009, 14:32
and the invoice was from 2005!
elainec100@cheapaccounting
9th December 2009, 14:34
why have they chased you now?
Just tell them that he company closed down and the date of closure.
toddle2u
9th December 2009, 14:36
Hand write on their letter "Company disolved. Check Companies House website for confirmation" and post back to them
Do not enter into any other dialogue with them
Jonny Thwaites
9th December 2009, 14:37
they are being liquidated themselves so I am being chased by the liquidators
Jenni384
9th December 2009, 14:38
Tell the liquidators your company was dissolved.
Hopefully that will be the end of it.
elainec100@cheapaccounting
9th December 2009, 14:51
they are being liquidated themselves so I am being chased by the liquidators
Oh well that explains it.
The liquidator will chase all outstanding debt.
Just sent back - company no longer at this address as dissolved