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.

[Amethyst]

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

Is / was the business a limited company and were the vans purchased ( on finance) by the company ?

[AVC]

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

Is / was the business a limited company and were the vans purchased ( on finance) by the company ?

Apologies. Yes it is a limited company and both vans were purchased in the company name.

Thanks.

[ostell]

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

Did you act as a guarantor for the loan?

[AVC]

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

Did you act as a guarantor for the loan?

hi, neither of us did

[wales01man]

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

You should mot be liable for LTD company debts id the company goes under or is struck of it no longer exists the vans are returned and that's the end. Are you still trading?

[Amethyst]

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

Are you liquidating the company ?

https://www.businessdebtline.org/EW/...trike-off.aspx

[AVC]

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

no, i was hoping to pay all the company debts and leave it dormant.

not sure if this is the best idea??

ive been left with a situation i know little to nothing about.

Thanks.

- - - Updated - - -

You should mot be liable for LTD company debts id the company goes under or is struck of it no longer exists the vans are returned and that's the end. Are you still trading?

no, i have stopped trading and completed the return of the VAT number.

[Amethyst]

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

Okay, so if this is your only remaining liability, you want to look at how much it might cost you rather than putting the company into liquidation.

Do you have copies of the finance agreements with black horse ? [MENTION=71570]R0b[/MENTION]

3 months isn't very far in to the contract - were they new or second hand vans ? ( ie will they have depreceated hugely )

[AVC]

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

Okay, so if this is your only remaining liability, you want to look at how much it might cost you rather than putting the company into liquidation.

Do you have copies of the finance agreements with black horse ? [MENTION=71570]R0b[/MENTION]

3 months isn't very far in to the contract - were they new or second hand vans ? ( ie will they have depreceated hugely )

They are both used vans. The company we bought them from have offered to buy them back but at 1/4 of the value. I will have to contact black horse to obtain a copy of the finance agreement as i havnt been left with any company documentation, agreements or paperwork.

Thanks.

[R0b]

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

If what you are saying is true, the starting point is that you have no liability to Blackhorse in respect of the vehicles if the contracting party was the Ltd Company. As rightly pointed out companies are a separate legal entity and have their own liabilities which cannot be transferred to employees or directors of the company. There are a few exceptions to this but the main one being that you have entered into a personal guarantee for those vehicles and upon which you would be liable as soon as the debt is called in. If that isn't the case then you shouldn't have anything to worry about in that respect.

However if the business is no longer a going concern then you as a director have fiduciary duties to the business and also creditors as well to prevent further debt incurring. If voluntary liquidation is the right thing to do then that's what you need to do but you might well be suited in taking some initial legal advice before you do.

[AVC]

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

Brilliant thank you.

[ostell]

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

Was this a loan to the company that allowed the purchase of the vans or was it a hire purchase type of agreement? If it was a straightforward loan then the vans are yours to sell if you wish. If you can get a reasonable price for them would that go a long way to paying off the loan?