Ltd company vs bailiffs

Discussion in 'Legal' started by -, Jun 2, 2008.

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  1. Guest

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    My question is simple, what can I do about a company of bailiffs chasing me personally for a debt owed via a CCJ on a limited company {i am a director} they have called at my private address threatening to take personal goods also goods NOT owned by the limited company and a vehicle {registered and owned by me by the way}
     
    Posted: Jun 2, 2008 By: Member since: Jan 1, 1970
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  2. Stonelaughter

    Stonelaughter UKBF Newcomer Free Member

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    Are they Court Appointed Bailliffs, or mere debt collectors? If they're Court Appointed bailliffs, complain to the Court. They cannot recover personal effects unless the CCJ was against you personally, and they know this very well. Also, if they are being aggressive or even pushy in their demands, they could be exceeding their remit.

    HOWEVER

    As a Director you ARE responsible for any debts your company owes (up to your limited liability); therefore you must meet the legitimate demands of the Court for payment.
     
    Posted: Jun 2, 2008 By: Stonelaughter Member since: May 16, 2008
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  3. Guest

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    sorry to seem dense but you mention up to my limited liability can you tell me what you mean by that?
     
    Posted: Jun 5, 2008 By: Member since: Jan 1, 1970
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  4. beenthruthemill

    beenthruthemill UKBF Newcomer Free Member

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    When you formed your ltd company you would have been required to issue shares. These shares would either be issued and unpaid or fully paid up. If you introduced capital equal to the value of the shares issued then they are paid up. You are only liable for the issued share capital that s unpaid. A good example would be you formed you're company with an issued share capital of £1000. The cost of forming the company was £100 and you threw in computer equipment and other items to the value of £900. You now have a firm capitalized at £1000, shares fully paid. You as the owner of the shares have no further liability. Always keep in mind that a limited company is a separate legal entity, even though you might own all the shares and be the sole director it is the company that enters contracts and it is solely liable to pays its debts.

    However, as a Director you cannot act fraudulently or in a reckless manner. If you do you can be held personally liable for all debts accumulated during and after the fraudulent or reckless behavior began. County courts do not have jurisdiction to pass the debts to the Director personally whilst the company remains in existence. The danger if one exists occurs after you have gone into liquidation and the receiver declares you're behavior as a Director to have been so poor as to ensure the company's demise. If he reports in this manner then those who were damaged by you're behavior can bring a civil case against you and if the court agrees with them liability could then be passed along to you personally.

    It sounds to me the bailiffs are just chancing their arm to put pressure on you to pay. If it were me I'd just front them out and should they seize any goods that are not owned by your company issue legal proceedings against them, or if it’s a motor vehicle - call the police.

    Hope the above helps

    I am not a lawyer and the above is just my opinion
     
    Posted: Jun 6, 2008 By: beenthruthemill Member since: Jun 5, 2008
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  5. Stonelaughter

    Stonelaughter UKBF Newcomer Free Member

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    If you start a "Limited" company, it means that the liability of the directors for the company's debt is limited to an amount specified in the company documents. If it is not a limited company, (i.e. it's a sole tradership or partnership) then all the owners/directors are responsible for company debts in full.
     
    Posted: Jun 6, 2008 By: Stonelaughter Member since: May 16, 2008
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  6. jholden

    jholden UKBF Newcomer Free Member

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    As everyone has said, you are only liable up to the value of your share capital, and if you paid for these shares then thats your liability dealt with.

    With the limited information you have given, if this is a company debt and as long as no one has gone to the DTI to remove limited liability status (which i doubt) then they have no redress against you as a director, unless you gave a personal guarantee.

    As said before, contact the courts and complain.

    Some debt collectors 'will try it on'!

    Jason
     
    Posted: Jun 6, 2008 By: jholden Member since: Apr 5, 2005
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  7. Guest

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    Thank you all thats very helpful and has put my mind to rest
     
    Posted: Jun 9, 2008 By: Member since: Jan 1, 1970
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  8. nigelmarsh

    nigelmarsh UKBF Newcomer Free Member

    140 22
    mmm!

    well let me give the a view from the other side , we often need to enforce CCJ on behalf of our clients , we would interpret the order of the judge to the benefits of our clients , if we had a writ from the high court , we may interpret that your home has an office used as a commercial promises , maybe you have used your 4th bedroom as an office and even better from our point of view maybe you have used it as your "registered address" In such a situation our "High Court Bailiff" could force an entrance and remove or distress items which the bailiff believes are assets of the company .

    As a bailiff i know you are going to complain , but i act under the instruction of the court , If you don't agree , i wont care as i act for the Judge and its only the Judge will i will take instructions from .

    Of course i will never leave myself open to criticism's from the court and there for i must be confident of my research before i approach the address.

    The moral of this is never leave a Judgement to "Due Process" also keep control of any situations , whether claims in your name or in companies that you direct .


    i hope this has given the possible viewpoint of the bailiff who will only get paid if his client receives funds .
    :)
     
    Posted: Jun 10, 2008 By: nigelmarsh Member since: May 28, 2008
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  9. yorkshirejames

    yorkshirejames UKBF Ace Free Member

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    Nigel, you seem one of the more reputable firms, but as I'm sure you are aware there are many firms that pretend to be a bailiff where they are in fact just a debt collector - i.e. there has been no Court Judgment.
     
    Posted: Jun 12, 2008 By: yorkshirejames Member since: Mar 2, 2006
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  10. nigelmarsh

    nigelmarsh UKBF Newcomer Free Member

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    ;) well i was trying to get the point across on this tread , that there is also a creditor who is struggling and may need the funds for survival .

    Of course there are little details in the tread and who has actually given the purchase order and who has been invoiced is not clear does the CCJ say CCJ against XYZ ltd ? as you know key details that will depend on action the bailiff takes .

    in the situation of a debt we will decide on how to play it , do we act now without a court order or do we get a court order first ? we advise and act on the best action for our clients , if that means turning up within hours of us being instructed with a view of snatching back assets for the benefit of our clients that is what we sill do .#

    Its not a job that wins many friends but somebody has to do it ;)

    and the only items i snatch now a days , as i get older and grey is a sandwich and a coffee , between phone calls and delegating jobs :)
     
    Posted: Jun 12, 2008 By: nigelmarsh Member since: May 28, 2008
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  11. yorkshirejames

    yorkshirejames UKBF Ace Free Member

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    Sure, but playing devils advocate, that company should have done its credit checking properly/worded its T&Cs so that it could simply retrieve the goods/etc.

    I accept of course that there are two sides to everything - surely you agree though that (unless there is a specific guarantor document) persuing a director for a companies debt is illegal?
     
    Posted: Jun 13, 2008 By: yorkshirejames Member since: Mar 2, 2006
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  12. Cred-X

    Cred-X UKBF Newcomer Free Member

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    That used to be the case, however, if a director is found to act improperly by ordering goods whilst knowing that there is no real likelihood of the creditor being paid then the director can be held personally liable for the debt.
     
    Posted: Jun 13, 2008 By: Cred-X Member since: May 16, 2007
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  13. yorkshirejames

    yorkshirejames UKBF Ace Free Member

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    Agree entirely, but we seem to be going off on tangents. Lets wait for the OP to tell us more of his situation.

    (sorry if these sorts of thread seem to boil down to bailiffs versus everyone else who is trying to help the alleged debtor... the chaps who post on here do seem a lot more experienced than the bailiffs/debt collectors we all hear the horror stories about, and we do all appreciate the service you provide to legitimate creditors...)
     
    Posted: Jun 13, 2008 By: yorkshirejames Member since: Mar 2, 2006
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