Will creditors look to me for their shortfall?

Creditors can only look to directors personally for their shortfall if directors have personally guaranteed the debt. Common personal guarantees are given to the bank, landlord, accountants and some trade suppliers. If you have committed fraud, creditors can pursue you personally. This is rare, but such claims are most commonly brought about by HM Revenue & Customs.

You should be aware that a liquidator has a duty to do an investigation into the directors’ conduct and report their findings to the Insolvency Services who have the power to issue fines and disqualify directors. In extreme cases of serious fraud criminal charges can also be brought about. The insolvency services and the liquidator have the powers to pursue a director personally for wrongdoing.

Speak to pa advisory if you have any concerns about transactions.