These days, personal debt issues are commonplace. Just because someone is a company director does not mean they will not be part of this wider trend. However, a company director may well have used loans to support their business in its infancy. This might not be a problem in good times, but if the business gets into serious financial difficulty it could well prove to be a very serious matter.
At Cooper Matthews we admire individuals who are willing to take risks to make a success of their entrepreneurial activities. However, if these entrepreneurial activities do not succeed then the risks taken may come back to haunt indebted directors. Due to the fact that there will be a complexity in the situation, beyond the capacity of an ordinary debt specialist to deal with, we know it makes commercial sense to use high quality business debt services.
Director business debt can feel very unfair. When one has worked so hard to build a dream, facing up to it can be painful. Nonetheless, to avoid worst case scenarios, it is critical to deal with it promptly. A range of options with different strengths and weaknesses need to be reflected on. These include things like an Individual Voluntary Agreement and bankruptcy.
Bankruptcy can preclude someone from being a director in the future and it should be viewed as a last resort. Director finance advice can be used to weigh up the benefits and drawbacks of bankruptcy and the available alternatives. Many successful directors have had personal debt problems in the past.