KEEPING YOU INFORMED • Company Voluntary Arrangements • Individual Voluntary Arrangements - Consumer Debts • Liquidation • Individual Voluntary Arrangements - Business Debts • Administration • Bankruptcy Appointments | email: Griffin & King, 26-28 Goodall Street, Walsall, West Midlands WS1 1QL Yes, it can. These days it is so easy for banks and loan providers to check into the background of an individual and that will include credit issues of any limited company of which he has been a director. Information is now available immediately into all directorships, whether past or present and judgements against a specific company. If any judgement remains unsatisfied by a company this would be taken into account in the credit assessing process (of a director) by the potential loan provider. The debt itself doesn’t need to be personally guaranteed. Any initial court summons would be served on the registered office. It is essential that the directors monitor any such communications. We often see when a company is insolvent court actions can be ignored by the directors which are more likely to result in a judgement being entered. One practical way of avoiding any judgement being entered would be to commence the insolvency process earlier - and if there is no good reason to continue to trade the company, this is the right course of action for directors, in any event. Usually, once a creditor knows a company is entering an insolvency process, they will discontinue any action. But, even if a company has entered liquidation a creditor can still enter judgement which will have the same effect. Assuming the debt is not disputed, this judgement cannot be challenged or removed by the Liquidator and it will stand. CAN A JUDGEMENT AGAINST A COMPANY AFFECT A DIRECTOR’S CREDITWORTHINESS? BUSINESS RESCUE, RECOVERY AND TURNAROUND News and views from the Griffin & King team WINTER 2017 / 2018 Management team: Janet Peacock, Cheryl Gray, Tim Corfield, Emma Wallis, Mark Shaw. Download a copy by Tim Corfield G&K DOES IT MATTER WHO YOUR CLIENT GOES TO FOR AN IVA? Page 2 ANOTHER FRANCHISEE OPERATION GOES UNDER! Page 2 BUSINESS BRIEFING Page 3 STRIKING NUMBERS Page 3 OUR NEXT SEMINAR Page 3 THE LAST WORD Page 4 COMPETITION TIME Page 4