Director Loan - Debt Recovery?

[grey_lady]

How's your credit rating? if it's good then you could probably get an 18k loan for around 250 a month over 8 years. In the future you're bound to get a better daily rate and be able to pay it back quicker.

A debt recovery company may even be able to help you get some back off your ex.

If finding £250 a month is difficult then it really is worth posting your budget
on the mse or motley fool website, to get some ideas on cutting your outgoings.

Or face whatever HM R&C throw at you which will be stressful and unpleasant and probably scarey, but they won't make you homeless/starve and you will get through it and come out the other side.

[TheFaQQer]

I am not sure how they could argue that I have been negligent really.

I'm not saying that you were - but this is HMRC we're dealing with, remember

His mother works and lives locally. I have been in contact with her recently, but only for her to tell me to leave her son alone. She has been fairly threatening towards me so I'm not keen on following that up, it wouldn't go anywhere.

Firebomb his mothers house. When he turns up, have someone beat the crap out of him. Might not help the situation, but you'll feel better for it.

As for the CSA, they were in contact with him but he has failed to respond to their requests for his income. They are now attempting to trace him through HMRC apparantly.

Fingers crossed - if they can find him through HMRC, then maybe HMRC can do something about getting the money.

[MaryPoppins]

How's your credit rating? if it's good then you could probably get an 18k loan for around 250 a month over 8 years. In the future you're bound to get a better daily rate and be able to pay it back quicker.

A debt recovery company may even be able to help you get some back off your ex.

If finding £250 a month is difficult then it really is worth posting your budget
on the mse or motley fool website, to get some ideas on cutting your outgoings.

Or face whatever HM R&C throw at you which will be stressful and unpleasant and probably scarey, but they won't make you homeless/starve and you will get through it and come out the other side.

I am still in the mindset that I refuse to repay his debt given everything else that's happened. Silly- possibly. Facing HMRC is what I was planning to do, being honest and upfront and hoping that they are vaguely reasonable.

I know, I just read that back.

[MaryPoppins]

I'm not saying that you were - but this is HMRC we're dealing with, remember



Firebomb his mothers house. When he turns up, have someone beat the crap out of him. Might not help the situation, but you'll feel better for it.



Fingers crossed - if they can find him through HMRC, then maybe HMRC can do something about getting the money.

The firebombing option is very tempting. I would happily do the honours where the beating is concerned though.

That's what the IP said - he advised me to mention to HMRC that the CSA are in contact with him.

WRT the other post about the judgement, that's interesting, and has been mentioned before. Does it cost to serve the judgement?

[Paddy]

WRT the other post about the judgement, that's interesting, and has been mentioned before. Does it cost to serve the judgement?

£360 for up to £50,000
Can be done by recorded delivery to last know address or delivered by hand by a friend to last known address. The friend then needs to go to the court office and swear that it was served (about 20 mins work and very easy).

aprox £100 to apply for judgment.

[MaryPoppins]

£360 for up to £50,000
Can be done by recorded delivery to last know address or delivered by hand by a friend to last known address. The friend then needs to go to the court office and swear that it was served (about 20 mins work and very easy).

aprox £100 to apply for judgment.

That's actually worth doing, isn't it. Mainly to show HMRC that the company is actively chasing the debt.

I was sort of unsure initially as to whether the loan could actually be "chased" given that a directors loan can, technically, continue to remain unpaid for as long as the company is running (as long as the director is prepared to pay the additional tax). However because the loan was using funds allocated for tax purposes, that surely justifies demanding repayment.

[ASB]

Those two points contradict each other - if HMRC argue negligence successfully, then they will transfer the debt to you personally. In which case, they can take away YOUR belongings.

The two points don't contradict each other in fact. Though I can see why you think they might, guess I wasn't clear enough.

If the bailiffs turn up and the judgement is against MP-Ltd then they cannot seize anything which does not belong to the company.

They cannot take away MP's belongings until such point as they have actually transferred the debt to her. It will be difficult to do that unless they can demonstrate she was complicit or negligent (the fact that the co director was also her partner may impact on the ease or otherwise they could use the transfer provisions).

[MaryPoppins]

The two points don't contradict each other in fact. Though I can see why you think they might, guess I wasn't clear enough.

If the bailiffs turn up and the judgement is against MP-Ltd then they cannot seize anything which does not belong to the company.

They cannot take away MP's belongings until such point as they have actually transferred the debt to her. It will be difficult to do that unless they can demonstrate she was complicit or negligent (the fact that the co director was also her partner may impact on the ease or otherwise they could use the transfer provisions).

No need for them to know he was my partner in the biblical sense. We didn't live together or have any other joint stuff?

[northernladuk]

£360 for up to £50,000
Can be done by recorded delivery to last know address or delivered by hand by a friend to last known address. The friend then needs to go to the court office and swear that it was served (about 20 mins work and very easy).

aprox £100 to apply for judgment.

I believe you can even serve him via Facebook or other online medium if he is on it. Someone did it recently I seem to remember.

[ASB]

That's actually worth doing, isn't it. Mainly to show HMRC that the company is actively chasing the debt.

I was sort of unsure initially as to whether the loan could actually be "chased" given that a directors loan can, technically, continue to remain unpaid for as long as the company is running (as long as the director is prepared to pay the additional tax). However because the loan was using funds allocated for tax purposes, that surely justifies demanding repayment.

You might want to consider using a court bailiff to serve (approx 9 quid when they eventually do it) or a process server (generally about 100 quid). Process servers are pretty at tracking people down (but it bumps the costs up).

The advantage of using the court bailiff or a process server is that it is generally more difficult to challenge service than if a mate does it. In any event if the server swears an affidavit at the local court it is free (or at least was when I did it a few weeks ago). Alternatively swearing at a solicitors or commissioner incurs a charge - normally I think 7 quid).

Unless there is any documentation to the contrary the loan is - I believe - repayable on demand.