Overdrawn Director Loan Accounts

Liquidators frequently demand repayment of overdrawn directors’ loan accounts — claiming funds were unlawfully withdrawn from the company. We assess whether the
withdrawals were legitimate, accounted for properly, or offset by unpaid salary or dividends.

Our team challenges inflated claims and defends directors from unfair or exaggerated repayment demands.

Preference Payments

If a director caused the company to pay one creditor in preference to others shortly before liquidation, a liquidator may try to recover that payment personally from the director. We examine intent, timing, and financial context to defend preference payment claims.

Transactions at Undervalue

Liquidators can seek to set aside transactions made for less than market value — including transfers of assets to family members or directors. We defend these claims by proving fair
value, commercial justification, or insolvency timing defences.

Wrongful & Fraudulent Trading

Directors may face wrongful trading accusations for continuing to trade when the company was insolvent, or fraudulent trading where dishonesty is alleged. These are serious claims with potential for director disqualification and personal liability.

West London Law builds strong, evidence-led defences for directors under scrutiny.