Hi
My father was a director of a company which he sold in 2006. This month that company went into liquidation and creditors of that company are sending him debt collection letters as his name is still on the trade accounts that were set up prior to its sale.
My question is, as my father signed the credit applications, is he still liable for the debt the company has raised, even though he is no longer a director or involved in the company in any way?
They rang the company that the money is owed to, and they said that because he signed the original credit agreement that he is liable for the debt, even though he is not involved in the company, and they are taking legal action against him.
Any help would be appreciated.
My father was a director of a company which he sold in 2006. This month that company went into liquidation and creditors of that company are sending him debt collection letters as his name is still on the trade accounts that were set up prior to its sale.
My question is, as my father signed the credit applications, is he still liable for the debt the company has raised, even though he is no longer a director or involved in the company in any way?
They rang the company that the money is owed to, and they said that because he signed the original credit agreement that he is liable for the debt, even though he is not involved in the company, and they are taking legal action against him.
Any help would be appreciated.