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dave t

Can directors of a Ltd company be chased personally for debt?

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This is a hypothetical question only - I'm just considering my best options for the future....

 

If I started a Ltd company  to buy and rent out residential property, with myself and my wife as Directors - if the Company became bankrupt (or whatever the term is for companies that 'go bump') - could the mortgage companies for the houses under the ltd co (or anyone else?) try to reposses my family home, which is owned by myself + wife, or pursue me personally for any debt?

 

Thanks

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To get a Ltd BTL mortgage you will pretty much have to give a personal guarantee so i would say yes they mortgage company can/will come after you personally. I would say its very low risk as the mortgage company will start by selling the property and taking the proceeedings. I have had to do this personal guarantee and cant say I am very worried about it - as its pretty difficult for a LTD company with a few properties to go bankrupt to be honest.

It is possible to get a BTL without the personal guarantee via specialist lenders or after the Ltd has a proven/profitable track record.

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