I may need to initiate debt recovery proceedings against a client - the debts are owed to my two limited companies. Can I combine the debts owed to each company, or would I need to initiate two separate actions.
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Legal action - can I combine debts owed to my two limited companies
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you can't "combine" debt.Originally posted by interestedparty View PostI may need to initiate debt recovery proceedings against a client - the debts are owed to my two limited companies. Can I combine the debts owed to each company, or would I need to initiate two separate actions.
There are two separate debts to two distinct legal entities.
If you really think it's easier to purse one, then one company needs to 'buy' the debt from the other. The same way as companies sell debt to debt collection agencies.
Or sell one company to the other as an entire legal entity.
Both options are overly complex IMOSee You Next Tuesday -
You are person. You can take clients to court for non-payment.
The first company you own, it can take clients to court for non-payment, via its director.
The second company you own, it can take clients to court for non-payment, via its director.
Do you understand now?Down with racism. Long live miscegenation!Comment
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Originally posted by NotAllThere View PostYou are person. You can take clients to court for non-payment.
The first company you own, it can take clients to court for non-payment, via it's director.
The second company you own, it can take clients to court for non-payment, via it's director.
Do you understand now?
itsSee You Next TuesdayComment
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