Overdrawn Director’s Loan Account?
Settle It Before Liquidation and Protect Yourself
If you're a company director with an overdrawn loan account and your business is in financial difficulty, time is critical. Once liquidation begins, the liquidator will pursue you personally for repayment.
But if you act now-before liquidation-you may be able to settle for significantly less.
What Is an Overdrawn Director’s Loan Account?
An overdrawn director’s loan account (DLA) occurs when you’ve taken more money out of the business than you've repaid. This is recorded as a debt you owe the company.
It’s a common issue, especially in small and medium-sized companies where directors often withdraw funds informally. But once a company enters liquidation, an overdrawn DLA becomes a personal liability.
Get Help With Your Overdrawn Director’s Loan Account
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Why You Must Act Before Liquidation
If your company is placed into liquidation while the loan account is overdrawn, the liquidator is legally obligated to recover those funds from you. You could be:
Personally sued for repayment
Forced to settle the full amount
At risk of bankruptcy if you can’t pay
How Insolvency & Law Can Help
At Insolvency & Law, we help directors negotiate and settle overdrawn DLAs before liquidation begins. This allows you to:
Avoid aggressive legal action from a liquidator
Settle your debt for significantly less than the full amount
Regain control of the situation
Enter liquidation on your own terms, with reduced personal risk
We’ve helped hundreds of directors protect themselves from financial and legal damage-we can help you too.
Speak to an Expert Today
If your business is struggling and your director’s loan account is overdrawn, don’t wait. The earlier you act, the more options you have.
Call us now on 020 7504 1300 or request a confidential call-back using the form below.