Debt Liability for a closed Ltd Company

Jonny Thwaites · Dec 9, 2009

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 · Dec 9, 2009

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 · Dec 9, 2009

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 · Dec 9, 2009

So following on from what OWG says, did you close the company or was it struck off by the Registrar of Companies?

Jonny Thwaites · Dec 9, 2009

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.

elaine@cheapaccounting · Dec 9, 2009

blimey - there accounting system must be rubbish if they didn't cash the cheque and haven't chased you since!

Jonny Thwaites · Dec 9, 2009

and the invoice was from 2005!

elaine@cheapaccounting · Dec 9, 2009

why have they chased you now?

Just tell them that he company closed down and the date of closure.

toddle2u · Dec 9, 2009

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 · Dec 9, 2009

they are being liquidated themselves so I am being chased by the liquidators

Jenni384 · Dec 9, 2009

Tell the liquidators your company was dissolved.

Hopefully that will be the end of it.

elaine@cheapaccounting · Dec 9, 2009

Jonny Thwaites said:
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

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