Directorship on personal credit file

[ProperTee]

My personal credit file is clean except there is an entry there for a directorship in a company that is now liquidated. There is one default on the company's file for about $600. Is this likely to be even looked at by a lender or LMI?

On the plus side, I've had stable employment for over 5 years earning over $100k. I'm hoping they see that and don't look too much further, but is that a bit too utopian of me?

More to the point, if it is a potential issue, is there anything I can do about it other than wait for it to disappear in about 9 years?

 

[Rolf Latham]

Hi LT

they may ask for a letter from the acct that its all good now

t
arolf

 

[Marty McDonald]

Get an accountants letter to say the company is no longer trading and has no outstanding debts (upfront). If the default is unpaid you may want to pay it.

 

[Qlds007]

As the boys said.

Realistically if that was a thing of the past then no reason why you cant get the deal over the line.

 

[Terryw]

I think it could be a problem, especially LMI.

Get of copy of the liquidator's report and see how bad it looks. They will all look bad because of the high liquidators fees. It looks like you have run away with out paying the debt, but this may not necessarily be the case.

I am working on a liquidation now over a debt of $4,000. The liquidators fees are up to $33,000.

 

[Aaron_C]

I am working on a liquidation now over a debt of $4,000. The liquidators fees are up to $33,000.

LOL. And they have priority over everyone else too...they make lawyers look like saints.

 

[pennyk]

we are directors of a company which is no longer operating. There are no current or past debts, but we are running behind on submitting our tax returns.

When we applied for a new loan recently, they asked for a stat dec to say that as directors of the company, we had no outstanding liabilities.

 

[Terryw]

we are directors of a company which is no longer operating. There are no current or past debts, but we are running behind on submitting our tax returns.

When we applied for a new loan recently, they asked for a stat dec to say that as directors of the company, we had no outstanding liabilities.

Unfortunately a company in liquidation will have outstanding liabilities. So I think it would potentially be a problem for PT

 

[Aaron_C]

Unfortunately a company in liquidation will have outstanding liabilities. So I think it would potentially be a problem for PT

But just because he is a director of a liquidated company doesn't mean that he personally is liable for those company debts. Only if he's breached his directors duties or signed a guarantee to that effect.

 

[Terryw]

But just because he is a director of a liquidated company doesn't mean that he personally is liable for those company debts. Only if he's breached his directors duties or signed a guarantee to that effect.

That's correct. he may not be personally liable but lenders still look at this as someone who doesn't pay their debts and therefore cannot be trusted.

 

[Aaron_C]

That's correct. he may not be personally liable but lenders still look at this as someone who doesn't pay their debts and therefore cannot be trusted.

Point taken Terry. I guess it's similar to that 'phoenix companies' laws they were talking about implementing to prevent people from being directors if they have a record of numerous failed companies.

 

[Mick C]

Get an accountants letter to say the company is no longer trading and has no outstanding debts (upfront). If the default is unpaid you may want to pay it.

Yep get the accountants letter if possible.

Regards
Michael