In most cases, a limited company’s debts belong to the company, not to its directors personally. However, there are important exceptions.

A director may be personally liable if they have given a personal guarantee for a company debt, such as a bank loan, lease, supplier account or finance agreement.

Personal liability can also become an issue if a director continues trading when they know, or should know, that the company cannot avoid insolvency, or if they act improperly while the company is in financial difficulty.

If you are worried about personal exposure, it is important to take advice before making further decisions. Havard Law Solicitors can review your position and help you understand the risks.