what are my options

[radioham]

Hi I am new to this forum after being recommended by a friend.

Can you help me?

 

In September 2007 I entered into a (what I thought was a lease hire agreement) but turned out to be a purchase lease. I was a Director and Chairman of the company.

 

The company Sales Manager at the time arranged the hire of 2 cars for the sales team.

She did all the negotiations for the leases. I was off on sick leave and she brought

Some documents for me to sign.

I signed as Chairman of the company and was instructed to sign another guarantee

form to say I would be responsible for the payments. The leases were taken out in the holding company which owned the company who were to use the cars. I asked why the

car company would not take the leases with the company who would be using the cars.

I was informed the credit rating was better with the holding company.

 

This seemed some what strange as the deposit and lease payments were to be paid by the company using the cars.

 

A couple of weeks later I received the log books for the cars, you do not hold log books

for cars leased hired. I inquired with the company who then told me we had purchased them.

 

The problem now is the company using the cars ran into difficulties with cash flow and could not keep up payments on the leases. I returned them to the people they were leased

or bought from. The holding company cannot pay so they are coming after me. I can not pay the 8,000k they want. I am 65 retired and live on a state pension. My wife is also on a state pension. I had a brain Hemorrhage in 2001 and am on medication to prevent another and to keep my blood pressure down.

 

A judgment has been made against me without me being there. As I stated I am on a pension and my payment options are very limited.

 

I am sorry this is a long question but I need to tell you as much as I can.

Can anyone help please? Thank you

[davefirewalker]

I'm sure someone will come along shortly and give some advice.

 

it can take a little time, in the meantime read through the faq's and try to get a feel for the site

 

rgds

 

Dave

[loobyloo85]

Hi there

 

I am very sorry to hear about your situation - it seems very unjust.

 

I would suggest that you take this further, by visiting the CAB, getting further advice, and then taking action with a solicitor. Although you are on a state pension, you may be entitled to legal aid where you do not have to pay for the solicitor.

 

All the best

[davefirewalker]

I see no one has commented properly....just bringing it back up

 

Dave

[creditcardmug]

"The leases were taken in the name of the holding Co", so were you a director of that? did you give any personal guarantee?

 

If not then you are not personally liable for the companys debts, and they must sue the company

[radioham]

Thank you for your advice.

I am Director of the holding company. The payments and deposit were paid by the company that was owned by the holding company. There was a board meeting and the debt payments were transfered at that meeting by memo to the operating company. However the finance company would not accept the transfere, but still took the payments from that company and not the holding company.

 

I have the judgement against me now also the Holding company has a judgement. I am just bothered they will not get any monies from the holding co, as it has none, so they are comming after me.

How do I have to pay this, could they take my house? it is joint owned

I have no savings my wife and I still owe 25k on the property.

I am trying to defend this action but it is costly. Sorry if this seems complicated.

[creditcardmug]

The problem is, this is really a consumer help forum, not business, i suspect thats why your not getting many replies, i only answered because i was a director of a couple of companies many years ago, so i know a little about it.

 

From what i know, a companys liabilty is limited by its share capital, and if that has already been paid, and has been used, and the co. has no money, then you are not liable (unless you gave a personal guarantee)

If the company is insolvent, it should be liquidated in the proper manner, if you are still a director and the co. is trading while insolvent, then you could be held liable for all of its debts.

 

In all of the above im talking about the company with which the creditor has the agreement, regardless of which one made the payments

 

Thats about as much as i can say to help you, keep bumping the thread, others may see it, who can help a bit more