Update 1: Thank you for your reply.

Hello, cfp netizen! Regarding your question, cecimak would like to express the following views, but please note that these personal views are for your reference only and are not guaranteed to be absolutely correct!

How to deal with the debts of a limited company that is insolvent?

A: If a limited company is unable to repay its debts, it can apply for liquidation by itself or by its creditors!

Limited company is a company registered under the Companies Ordinance (Chapter 32 of the Laws of China), and it is also a legal entity (that is, it can sue others or be sued)! The debts of the shareholders of a company are limited to the value of the shares they hold in the company. These companies are called joint stock limited companies in the Companies Ordinance!

In other words, in theory, the shareholders of the company only bear the value loss of holding the company's shares, and other outstanding debts have nothing to do with the shareholders! This is also the reason why the bank mentioned just now only provides personal loans to one director to guarantee the company's business, rather than directly providing loans to the company! Because banks know that non-personal loans will not be effectively recovered when liquidation really happens!

Since the company has basically stopped operating and is no longer able to repay its debts, the bank seeks compensation from the directors who have accepted personal loans. This is a legal and normal procedure!

Since the directors have filed for bankruptcy because they are unable to cope, theoretically, banks should stop recovering debts from limited companies and directors who promise to guarantee them! Because no one is legally responsible for these debts!

Is it legal to collect debts in the name of a limited company?

A: If this other director only becomes the guarantor of the company or another borrowing director without signing, he is absolutely not required to bear the debt repayment responsibility! Therefore, the behavior of this debt collection company is untenable!

Simply put, this director has never owed these debts personally, and the debts of those companies and another director have nothing to do with him according to law. Then why did he pay his debts?

But it is because the procedure is illegal that the creditors of that bank resort to the harassment method of debt collection companies in order to recover these specious debts from unrelated third parties! If this director had to bear legal responsibility, the bank would have gone to court to recover it. There is no need to collect debts from the company!

The current plan of the bank is that the limited company has no assets to recover after liquidation, and the only director who is legally responsible applies for bankruptcy because he can't repay his debts! So these debt losses of banks are basically ironclad facts! Then the bank simply transferred the debt to the debt collection company and recovered as much as it could, because it caused nuisance to the directors of other companies!

In short, remember, people who don't have to bear the debt repayment responsibility don't have to respond to these unreasonable debt collection behaviors! Debt collection companies point out that surnames mean that they want to cause embarrassment and pressure to the debt collectors, or because they don't know the law and are afraid of trouble! Thereby generating income and paying all or part of the repayment!

As long as they collect debts on behalf of legitimate banks, these debt collection companies will not do anything illegal! However, abusive door-to-door debt collection actions will inevitably appear! Ignore them if you are not afraid, and call the police if you really feel nuisance! ! Reference: cecimak's experience and understanding as a bankrupt! I hope I can help you! Taoyuan Pawnshop Zhongli Pawnshop Renbao Pawnshop provides loan services such as loan, loan, loan, second child agency, auto financing and mortgage!

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