Advice for asset protection

[cwah]

Change country. Go to asia for 5 years!

[WTFH]

What are you not telling us here ?

This.
Contrary to LPM1 and others, we don’t live in the USA. People just don’t take others to court for no reason and win easily.

Why is an individual being taken to court over a privately rented property?
What is the reason?
Is there any justification in it?

[GhostofTarbera]

I'm a director of a one-person ltd company with a small turnover, and I've recently been issued with a personal (non-business related) claim for possession of a building I privately rent. I'm planning on defending the claim in court, but there is at least a possibility of being landed with a claim for damages that I've been told could reach "several tens of thousands of pounds". Taking that as a potential scenario, are the assets in my ltd company protected from such a claim, or will the company be seen as something that I may be required to liquidate in order to pay such costs?

Also, would this ltd company be seen as an asset that I would need to declare with respect to my eligibility for legal aid?

Just move out of the building you don’t own, rent somewhere else

What are you not telling us here ?


Sent from my iPhone using Contractor UK Forum

[WordIsBond]

Your pension may be protected, so you may be able to protect some of your company assets by making a pension contribution. That, of course, ties up the money to retirement.

This may be deemed to be asset-stripping for the purpose of defrauding the claimant and could get you into a lot of trouble. But if you've made large pension contributions in the past and you make a contribution consistent with those it may be safe.

You should definitely get legal advice before any such action, or you might end up even worse off. Do NOT trust advice you get on the Internet on this one. Just don't even think about it. But it is something you could ask your solicitor.

[NowPermOutsideUK]

Why would you choose to settle out of court if you were innocent of the charge?

Possibly because legal costs to fight the claim would not be completely recoverable even if awarded on an indemnity basis.

To the op. Your company shareholders are definitely part of your assets. If you so not pay a dent which is awarded in court you will be made bankrupt if the creditor enforced the judgement. This means your shareholding is part of assets for disposal

[WTFH]

There is the possibility of settling out of court, but it isn't currently clear whether the claimant will agree to a settlement.

Why would you choose to settle out of court if you were innocent of the charge?

[yusefkerr]

Thanks for the replies,

I don't have personal insurance against indemnity claims, and the possibility of damages is at least partly based on whether an indemnity clause will hold me accountable for damages.

As I understand for purposes of legal aid, it sounds like the company would be taken into account on a simple basis of assets minus liabilities, does that sound likely?

There is the possibility of settling out of court, but it isn't currently clear whether the claimant will agree to a settlement.

[WordIsBond]

I'm a director of a one-person ltd company with a small turnover, and I've recently been issued with a personal (non-business related) claim for possession of a building I privately rent. I'm planning on defending the claim in court, but there is at least a possibility of being landed with a claim for damages that I've been told could reach "several tens of thousands of pounds".

You don't have insurance for this?

[northernladuk]

It's weird that we've given advice around the company being taken in to account in the case of divorce so you'd expect the situation to be the same in this case no?

[courtg9000]

If it's a personal claim, what is the connection to your business? You and it are separate legal entities (assuming you are referring to a Limited Company).

Ladymuck,
The shareholdings are seen as a personal asset.

[courtg9000]

I'm a director of a one-person ltd company with a small turnover, and I've recently been issued with a personal (non-business related) claim for possession of a building I privately rent. I'm planning on defending the claim in court, but there is at least a possibility of being landed with a claim for damages that I've been told could reach "several tens of thousands of pounds". Taking that as a potential scenario, are the assets in my ltd company protected from such a claim, or will the company be seen as something that I may be required to liquidate in order to pay such costs?

Also, would this ltd company be seen as an asset that I would need to declare with respect to my eligibility for legal aid?

You will have declare the company for legal aid as I seem to remember with a situation I had about 11 years ago.
I was asked for figures for my 2 companies. One was in overdraft and the other had some profit but would need to pay the overdraft off. They really went into detail.
Can you try settling the other side out of court, or are they hellbent on their day in court?

[ladymuck]

If it's a personal claim, what is the connection to your business? You and it are separate legal entities (assuming you are referring to a Limited Company).

[yusefkerr]

I'm a director of a one-person ltd company with a small turnover, and I've recently been issued with a personal (non-business related) claim for possession of a building I privately rent. I'm planning on defending the claim in court, but there is at least a possibility of being landed with a claim for damages that I've been told could reach "several tens of thousands of pounds". Taking that as a potential scenario, are the assets in my ltd company protected from such a claim, or will the company be seen as something that I may be required to liquidate in order to pay such costs?

Also, would this ltd company be seen as an asset that I would need to declare with respect to my eligibility for legal aid?