Quite historic this one, relating to a question asked by one of the former Directors, who is a sole trader client of mine, and this topic cropped up in a recent conversation. He's curious more than anything, having had a lot of thinking time available due to being ill.
Company liquidated more than 10 years ago. There was a 10k credit card balance, taken out when the Company operated as a partnership and continued being used in the Company. The debt was pursued against one of the partners but quashed because they had also put in a claim to the liquidator of the Ltd Co.
There was also a large debt to a bank, who had pg's against both Directors. The bank only pursued one of the Directors, as the other had gone into a personal IVA. and an equitable charge was placed on his share of his house.
The bank hasn't chased in the meantime but he is asking (after all this time!) if the bank was within it's rights to personally pursue the debt.
I would say yes, but he's of the impression that if the credit card debt was quashed because of a claim against the Ltd Co, then it's possible that the bank loan would be as well.