Directors Loan Account Case Study

Insolvency Case Study

Type of Work: Directors Loan Account


Our client was appointed Liquidator of the Company and during their appointment had identified an overdrawn director’s loan account.

Whilst the director had acknowledged the debt and made some payments against the balance, there was still a large balance due to the Liquidation.

Given that the director had stopped making payments and the Liquidator was struggling to contact the director we were engaged to collect the balance.


We contacted the debtor and advised that the balance needed to be repaid. He advised that he was not able to pay in full and we worked with him to establish what he could afford to pay, and we then agreed to a settlement proposal.

The settlement proposal required him to make substantial monthly payments within a specific time frame.


We were able to collect all monies due under the settlement agreement by managing the account and ensuring all payments were received resulting in collections of £60,000, in addition to the sums previously received by the Liquidator.


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