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Loan Responsibility

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  • Loan Responsibility

    Good morning all,

    I was wondering if someone might have any insights that could help. My father in law has a business and has registered it on company house. He has used his son in law as the company director and one of his daughters as the secretary (not the daughter that's married to the son in law). The son in law took out a very large loan against the company with out telling my father in last for 30K+. Currently he is only paying back £70 a month with is interest only. My father in law only found out about the loan because the son in law didn't make the first two interest payments.

    My question is, if the son in law defaults on the payments can the daughter be held responsible for the debt as she is the other name on company house as the secretary?

    My father in law doesn't appear to be any more than an employee on the company in paper work form. It was a very devious thing for the son in law to do and knowing his person circumstances, he can not make the repayments when it comes to the time of the actual loan being paid back rather than just interest.

    Thanks in advance for any advice.

    Peachie1

    Tags: None

  • #2
    Oh. I have just responded to your other thread. What a mess your family has got itself into.

    On the information given, the company is liable for the loan. The lady in question is unlikely to be liable for the debt unless she has given a personal guarantee.

    Add this to the list of things on which you seek legal advice.
    Lawyer (solicitor) - retired from practice, now in academia. I do not advise by PM.

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    • #3
      Thank you so much... that will put her mind at ease. We were really worried that as she was listed as the secretary that she would share responsibility as she was named.

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      • #4
        The situation looks really complicated, and I hope you all will be fine. I have always thought that taking a loan is not a good thing and you should do that as a last resort. I had taken a loan only once in my life, when I lived in Costa Rica. I did that because I needed money to start my own business. I had some savings, but they were not enough. Thatís why I went to www.monifai.com to get some money. The interest rate was fine, and I decided to take risks. It went well because I managed to build a good company, and I was able to repay the loan fast. But not everyone is that lucky.
        Last edited by beatsclo; 22nd July 2022, 19:30:PM.

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