Selling a debt on

[Ali43]

My husband, myself and another guy are directors in a Ltd company which is in the process of going into administration. We have a CCJ against the company in favour of another Ltd company which has money owed to it from us. Long story short - my husband and myself are not in a position to personally meet this debt. My husband has been to see the guy today and suggested that our other director may be in a position to pay it (he has gone to ground since business folded and the police are investigating him for fraud) The guy isnt interested and is this weekend going to "not pay his boys and send them round" or sell the debt on to a third party. My question is can he sell a debt on that is from one limited company to another? Thanks

[bill preston]

if your company goes into administration it will be the responsibility of the administration company...not yours?

are you in the process of winding up now or is it something your planning in the future?

[Twenty20]

Yes, you can sell debts on and this is done all the time between companies. Many companies sell their debts or invoices to factors and the factor will chase the debt and collect payment.

Alternatively, you may find they instruct a debt collector.

I'm not surprised that they're not interested in the third director, they know where you two are and so will chase you for payment.

However, if this man has threatened your husband then I would definitely inform the police.

[bill preston]

but as a LTD company the debt will be passed on along with any other debt's to the administrator?

as far as i am aware, the only time anyone can chase a private individual for a LTD company's debt will be if the person involved has acted as a guarantor for the debt?

[Markandshez]

I go with Bill, as a Limited Company the debt is nothing to do with y ou personally unless you signed a personal gurantee. That is really the whole point of going Limited - it gives you limited liability.

Tell the bloke to take a hike, inform the administraters and, if need be, the police. The debt is NOT yours.