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Protecting house & money when business folds

(12 Posts)
Mcsh1977 Wed 06-Nov-13 21:46:12

Wasn't quite sure where to put this, but I hope some one might have some advice!

So in a nutshell it's looking like the business that my husband is a share holding director (only 10%) of is about to fold, probably owing about 80k

If we sold our house and released the equity, can we do anything to protect it?

I was wondering whether I could put it in the childrens names? Can the receivers still get at it then?

Any feedback would be very welcome!

Thanks x

notapizzaeater Wed 06-Nov-13 21:51:25

Is it a limited company ? Are there any personnel guarantees ?

CogitoErgoSometimes Thu 07-Nov-13 09:11:01

He really needs to get proper legal advice. As said above, it depends on whether it's a limited company if there are any guarantees & what his personal liability is.

deepfriedsage Thu 07-Nov-13 09:13:51

I wonder what the creditors will think of this? I am sorry for you and the dc op as sorry as I feel for the creditors.

MinesAPintOfTea Thu 07-Nov-13 09:17:31

Was a loan secured against the house or something? I'm just wondering why you think that you need to sell your house at this point.

keli5325 Thu 07-Nov-13 10:10:27

Has your husband given any personal guarantees?

Your personal assets and the limited company are 2 separate entities unless he has given PGs?

I think you need to establish the facts and seek some advice but don't go rushing into the house

manzanillaplease Thu 07-Nov-13 15:45:55

If it is a limited company AND your husband hasn't given any personal guarantees or used the house as security, then it is safe and you don't need to do anything.

If this isn't the case, so the house is at risk, there is NOTHING you can do to help because the Official Receiver in bankruptcy would overturn any transactions that tried to move the house or its realised equity if you sell it into your names or the childrens - and if husband is liable, his creditors will go for bankruptcy if it appears he is trying to conceal assets from them.

Your own equity in the house should be safe.

If you would like more info, please reply with answers to all the following questions:

- is company a limited company?
- has husband given any personal guarantees, if so for how much?
- is there any form of second charge on your house as security for the comany? If so how large?
- how much is the house worth, how large is the mortgage? (rough guesses!)
- in whose name is the house, his or joint with you?

Mcsh1977 Thu 07-Nov-13 22:38:32

Hi all thanks for your replies.
I know this all sounds a bit dodgy! And unfair to the whom the money is owed. I'm just frustrated as my husband will have had no play in why the company folds (decisions which caused all this mess were nothing to do with him) so I'm just annoyed that our children might lose their home as a result. I'm also worried that if his co-directors have no funds whether my husband would then be liable for more than his share? I will get the answers to your questions tomorrow. Many thanks again for your kind replies x

manzanillaplease Fri 08-Nov-13 12:57:47

"I'm also worried that if his co-directors have no funds whether my husband would then be liable for more than his share?" If he is liable for anything (which isn't clear at the moment) then his liability will depend on the nature of the guarantee / security he gave.

But it would be usual if 4 directors each gave a personal guarantee for a loan of, say, 50k (you will understand this is just an example that may be completely irrelevant for your OH), that the lender could decide to chase any of them for the full amount of the loan, not each of them for 25% of the loan.

deepfriedsage Fri 08-Nov-13 13:41:48

Best of luck as you say not fair on the dc having to move. Is there enought after the debt to find somethingsmaller or a deposit to rent?

ElizabethJonesMartin Fri 08-Nov-13 14:07:56

Main question is if it is a limited company or not and even if it is sometimes directors are liable for PAYE tax on a liquidation.
If he is just a normal director of a limited registered company then your assets are safe unless he's broken the law personally, traded whilst insolvent etc.

Mcsh1977 Sat 09-Nov-13 17:03:19

Hi there
Just to let you know we saw a friend of a friend today who is an insolvency specialist, so he gave us loads of advice.
Thanks everyone for your replies x

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