Business van purchase and the closure of the business.

[AVC]

Good evening,

I am looking for some advice on a matter between a business van purchase and the closure of the business.

Three months ago we purchased two vans on finance with black horse. Unfortunately due to underhand tactics from one director we have had to close the business. This has left me with two vans that i can no longer pay for.
I have been in contact with black horse collections team who have stated that because we are terminating the contract the vans will be collected and sent to auction. Following this i would incur the costs of collection, auction and the difference in finance value to auction sale value.

Would you know if this is standard procedure or just pressure tactics to get me to pay. They have discussed setting up payment plans once the vans have been auctioned but regardless of the outcome i will not be in a position to pay the settlement figure as the business closure has caused significant financial stress to myself and others.

Subsequently the director who took out the two policies has resigned, declared himself bankrupt and fled leaving me to pick up the pieces and company debt.

Hopefully someone can shed some light on the situation.

Thanks in advance.

[Carlosdecorator]

Re: Business van purchase and the closure of the business.

Is it a Ltd. business? If so, was the vans in the business's name? If they were and the business is closing or going bump, I think I'm right in saying that all debt goes with the company. Directors are not held responsible for company debt, that's why its a limited company (limited liability). If they're in your name personally then I believe it may be a different matter. Could you sell them privately and then pay the finance off if so?