Business Overdraft

[john.readman]

I sold my business two years ago and informed The Bank.The company has gone broke and I have recieved a demand for the balance of the overdraft.When I left the company there was an overdraft in place but it was not used Am I liable for the debt?

[Oneeyedvic]

Probably Yes:

When you signed for the overdraft, you would have signed a facility letter together with a security schedule. This would have told you what your liability was.

I am assuming that you were the Director of a Limited company as if it were a sole trader account, you would not be laible or even named on the account. As a Director, unless you had the bank remove your guarantee (and just writing to them letting them know you are no longer a Director has no bearing on this), you will in all likelihood be liable.

[Didwot]

It is difficult to tell from the limited information you give. If the business was a limited company, and if you had given a personal guarantee to the bank, and if there was no overdraft when you sold, and if when you sold you told the bank that you were terminating your guarantee, then the answer is that you are not liable for the debt. The key is that there had to be no overdraft, and you had to tell the bank that you were terminating your guarantee. That would fix you with a lilability to honour the guarantee to the amount then owing which would be nil.
Did you not have professional advice when you sold? if so your advisors should have sorted this out for you at the time.