A company is a legal entity in its own right, separate from its directors.
Directors are not personally liable for the debts of the company unless they make a personal guarantee. A personal guarantee is when a company director, as a guarantor guarantees using his personal wealth and property as a security, to pay a company liability if the company is unable to pay. Usually a bank will ask a director to secure a business loan or overdraft, or a landlord will ask for a guarantor to secure the rent on a property if the tenant cannot pay.
If a bailiff is pestering a director for a company debt owed by a closed company, then the director should make a formal notice and give it to the bailiff company telling them the company is closed.
Do not give the notice to the bailiff company by recorded delivery, otherwise they will refuse to sign for it, and it will bounce.
Template Letter: Tell the bailiff the company is closed.
Send the letter to the bailiff company and get a certificate of posting from the post office.
Give a copy of the letter to the bailiff company by email and make a screenshot of the sent email capturing the time you gave it.
Send a copy of the letter by text message to the bailiff to his mobile and make a screenshot of the sent text message to record the time you gave it.
Keep all screenshots for your file.
Template Notice of Intention to apply for injunction.
Only when a bailiff Threatens a director with enforcement of an unsecured company debt.
Send the letter to the bailiff company and get a certificate of posting from the post office.
Give a copy of the letter to the bailiff company by email and make a screenshot of the sent email capturing the time you gave it.
Send a copy of the letter by text message to the bailiff to his mobile and make a screenshot of the sent text message to record the time you gave it.
Keep all screenshots for your file.
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