Director Liability Checks

What are personal guarantees?

Personal guarantees (PGs) expose directors to significant financial risk, as they make you personally liable for specific company debts if the business enters insolvency. Once liquidation begins, lenders can pursue your personal assets-including your home-to recover the funds.

We help you independently review the exact terms of any PGs you have signed, assess your true level of exposure, and explore pragmatic strategies to manage or negotiate these liabilities before they escalate into severe legal threats.

What are overdrawn director loan accounts?

In liquidation, an overdrawn Director’s Loan Account (DLA) is treated as an asset of the company. Appointed liquidators will actively pursue you to repay this money, which can lead to severe personal financial pressure.

However, liquidator claims are sometimes overstated due to misclassified business expenses or unvoted dividends. We assist by independently reviewing their calculations, helping you gather the correct financial evidence, and supporting you in negotiating a fair and proportionate settlement.

What are bounce-back loans?

While Bounce Back Loans were government-backed-meaning directors are not automatically personally liable-they are heavily scrutinised during the liquidation process. Liquidators will rigorously investigate whether the funds were used strictly for the economic benefit of the company.

If misuse or improper "preference" payments are alleged, directors can face personal liability or disqualification proceedings. We help you gather the necessary documentation to clearly evidence how the funds were lawfully utilised, protecting you from unwarranted claims.