Option four
Protect yourself from personal claims
Most directors worry about the company and themselves at the same time. It is worth separating the two early, so you know what your actual personal exposure is.
Short answer
A limited company is separate from its directors, so company debts are not usually yours. The exceptions matter: personal guarantees, an overdrawn director's loan account, unpaid share capital, and conduct questions such as wrongful trading or disqualification. We look at each of those in your case, tell you where you stand, and plan around it while there is still time.
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IPA member
25+ years experienceFree first conversationFace-to-face or ZoomIs this right for you?
- You have signed personal guarantees, to a bank, a landlord or a supplier.
- Your director's loan account is overdrawn, or you are not sure.
- You are worried you have carried on trading too long.
- You have heard the phrase wrongful trading and want to know what it really means.
- You want to understand your position before you make any decision about the company.
What it means for you personally
- A personal guarantee is a separate contract and survives the company closing.
- An overdrawn director's loan account is money you owe the company, and a liquidator can ask for it back.
- Wrongful trading is about continuing to trade when you knew, or should have known, there was no reasonable prospect of avoiding insolvent liquidation. Taking advice and acting on it is exactly what helps here.
- Disqualification follows serious misconduct, not simply business failure.
How it works, step by step
- 1
A free, confidential conversation
Bring your worries, however vague. Most of them can be narrowed down quickly.
- 2
We map your actual exposure
Guarantees, loan account, share capital, overdrafts, leases, and anything you have signed personally.
- 3
We look at conduct
What you did, when, and what a liquidator would see. Acting early is one of the strongest things in your favour.
- 4
We plan around it
You get your position and your options in writing, including anything worth doing now rather than later.
Who does what
- Michael O'Connor advises you and is your point of contact throughout.
- Tony Sampson, MIPA, FABRP, Insolvency Solicitor, advises on guarantees, claims and conduct questions.
- Mark Bassford, FCA, Licensed Insolvency Practitioner, handles any formal appointment.
- Where your personal position needs separate legal representation, we say so.
Fees and what they cover
- The first conversation is free, confidential and informal.
- Any further work is quoted and agreed in writing first.
- Costs depend on your situation and are explained in writing before anything starts. The first conversation is free.
Common questions
Am I personally liable for my company's debts?
Usually no. A limited company is a separate legal person. The exceptions are personal guarantees, overdrawn director's loan accounts, unpaid share capital, and certain findings about your conduct.
What exactly is a personal guarantee?
A promise you signed to pay a company debt yourself if the company does not. It is a separate contract, so it survives liquidation. Check what you signed, including in small print on supplier accounts.
What happens to my director's loan account?
If it is overdrawn it is a debt you owe the company, and a liquidator will pursue it as an asset. It is better to know the number before a liquidation than after.
Could I be disqualified as a director?
Disqualification follows serious misconduct rather than business failure on its own. If you are worried about specific decisions, tell us about them and we will look at them with you.
Am I safer waiting and seeing?
Almost never. Once the company is insolvent your duty is to the creditors, and delay is one of the things that gets criticised. Taking advice is a point in your favour, not against you.
Is this conversation confidential?
Yes. It is confidential, free and informal, and no insolvency process is triggered by it.
Reviewed by Michael O'Connor, M.A. (Cantab), MABRP
Director and lead adviser. Last reviewed September 2026.
The other options
Talk it through before you decide anything.
Free, confidential and informal. Michael replies personally, usually the same day.
Clear options for directors under pressure. One adviser, from the first call to the finish.
This page is general information, not legal or financial advice.