Does anyone know anything about laws relating to personal debts? - HotUKDeals
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Does anyone know anything about laws relating to personal debts?

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Hi just wondering if anyone can shed any light on whether or not I could end up paying for this..... I recently set up a business with a friend of mine. We have no assets as such and haven't done… Read More
Little Munchkin Avatar
6y, 9m agoPosted 6 years, 9 months ago
Hi just wondering if anyone can shed any light on whether or not I could end up paying for this.....

I recently set up a business with a friend of mine. We have no assets as such and haven't done a huge amount of business yet. I have since found out (after receiving a snotty email) that my business partner owes an ex gf £6k that she wants back. He doesn't have the money. She knows that we have just set up the business(and obviously doesn't know we haven't made any money yet) and she is talking about chasing him for the money and taking him/our company to court.

I'm assuming that she can't touch the company as the debt is between her and my partner and nothing to do with the company. Then i thought maybe she can as he is a director of the company and if he owes the money then maybe she can take the company to court. Not sure what to think now and am a bit worried.

Anyone come across anything similar before?
Little Munchkin Avatar
6y, 9m agoPosted 6 years, 9 months ago
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Comments/page:
#1
hmmmm if its personal then its between him and her, not the company..

mind if I ask what you do?
#2
If she thinks she can get it through the company tell her to hop it (no reference to frogs legs intended).
[mod]#3
When you incorporated your company did you opt for Ltd?

Usually it would need to be the company that owes money and if they sue they need to sue the company as it has its own legal personality. Directors can be sued and this is known as "piercing the veil" but unless they have acted incredibly below the expected standard usually this cannot be achieved. So, to conclude, they would struggle to sue the company so I wouldnt be too concerned. If you cannot afford legal advice speak with Citizens Advice Bureau.

Edited By: magicjay1986 on Aug 18, 2010 22:25: Update.
#4
If he is a partner then he has a share in the business and debt collectors or whatever can take the money from his share in the business.
[mod] 1 Like #5
scott1295
If he is a partner then he has a share in the business and debt collectors or whatever can take the money from his share in the business.


Re-read the OPs notes. A company will have directors. Limited Liability Partnerships will have members and Partnerships will have partners. Plus, partners are liable to their other partners so if a debt is owed it can be also taken from the other partners. This is known as joint and several liability.

Edited By: magicjay1986 on Aug 18, 2010 22:28: Update
#6
lollingtons....
#7
magicjay1986
When you incorporated your company did you opt for Ltd? Usually it would need to be the company that owes money and if they sue they need to sue the company as it has its own legal personality. Directors can be sued and this is known as "piercing the veil" but unless they have acted incredibly below the expected standard usually this cannot be achieved. So, to conclude, they would struggle to sue the company so I wouldnt be too concerned. If you cannot afford legal advice speak with Citizens Advice Bureau.

yes we are a limited company. I'm not sure how the debt came about/what it was for as it was a personal thing between him and her so wouldn't know if he has acted below expected standards but I'm thinking she probably bailed him out of a hole financially and it was nothing business related.
[mod]#8
Little Munchkin
magicjay1986
When you incorporated your company did you opt for Ltd? Usually it would need to be the company that owes money and if they sue they need to sue the company as it has its own legal personality. Directors can be sued and this is known as "piercing the veil" but unless they have acted incredibly below the expected standard usually this cannot be achieved. So, to conclude, they would struggle to sue the company so I wouldnt be too concerned. If you cannot afford legal advice speak with Citizens Advice Bureau.


yes we are a limited company. I'm not sure how the debt came about/what it was for as it was a personal thing between him and her so wouldn't know if he has acted below expected standards but I'm thinking she probably bailed him out of a hole financially and it was nothing business related.


Then I would conclude to say that they cannot sue the company as this isn't a deal between them and your company.
#9
Disco
hmmmm if its personal then its between him and her, not the company..mind if I ask what you do?
He manages a band and has a tiny record label,our company is doing merchandising/pr for the band and the label
#10
MJ you really are a godsend on this site you know - plus seems u have been busy tonight with posters problems on couple of threads here!!

Your a star :D
#11
thankyou magicjay1986 :) it wouldn't let me quote you.
That's put my mind at rest. Had a sudden panic!!!!
[mod]#12
bossyboots
MJ you really are a godsend on this site you know - plus seems u have been busy tonight with posters problems on couple of threads here!!

Your a star :D


You would think after doing it all day long I would ignore these threads!! Keeps me on my toes though...

Hope you are well.
[mod]#13
Little Munchkin
thankyou magicjay1986 :) it wouldn't let me quote you.
That's put my mind at rest. Had a sudden panic!!!!


No worries. Best of luck with this venture!
#14
Sounds like your mate is a right scumbag if he's prepared to skank his ex out of £6k! I'd watch your company finances very, very closely. What's to say he wouldn't do the same to you? In my experience, people who renage on repaying what they owe very rarely change...
#15
Trogglescow
Sounds like your mate is a right scumbag if he's prepared to skank his ex out of £6k! I'd watch your company finances very, very closely. What's to say he wouldn't do the same to you? In my experience, people who renage on repaying what they owe very rarely change...

This. I'd be very worried if someone who I was partners with owed an ex a large sum of money like this, be very wary, no matter what excuse/explanation they give. Make sure you have reliable auditors and accountants, so you know where the stock and money is. All the best.
#16
Trogglescow
Sounds like your mate is a right scumbag if he's prepared to skank his ex out of £6k! I'd watch your company finances very, very closely. What's to say he wouldn't do the same to you? In my experience, people who renage on repaying what they owe very rarely change...

yes i've just been thinking this. This has all just been sprung on me this eve and so i'm still a bit shocked. Obviously if he's conned her in some way then he's not going to admit it to me anyway.
#17
all those unpaid hours for her working the street, fair play she wants whats owed
#18
magicjay1986
scott1295
If he is a partner then he has a share in the business and debt collectors or whatever can take the money from his share in the business.
Re-read the OPs notes. A company will have directors. Limited Liability Partnerships will have members and Partnerships will have partners. Plus, partners are liable to their other partners so if a debt is owed it can be also taken from the other partners. This is known as joint and several liability.
I was in a business partnership and was advised that each partner can be liable for each others debts , even if the debt is not to do with the partnership.ie personal.
banned#19
the sedge
magicjay1986
scott1295
If he is a partner then he has a share in the business and debt collectors or whatever can take the money from his share in the business.
Re-read the OPs notes. A company will have directors. Limited Liability Partnerships will have members and Partnerships will have partners. Plus, partners are liable to their other partners so if a debt is owed it can be also taken from the other partners. This is known as joint and several liability.

I was in a business partnership and was advised that each partner can be liable for each others debts , even if the debt is not to do with the partnership.ie personal.

yes, that was a partnership. OP is a director of a limited company. Completely different as MJ quite rightly pointed out

Good work MJ!

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