Companies: Debts Written Off
Commons · Question 106832 · Tabled 19 Jan 2026 · Department for Business and Trade · Official record
Answered 23 Jan 2026
Question
Asked by Edward Morello
To ask the Secretary of State for Business and Trade, if he will make an assessment of the potential impact of regulations allowing people whose companies’ debts are written off to retain personal wealth on public confidence in (a) fraud investigation and
Answer
Answered by Blair McDougall, 23 Jan 2026
There are no plans for any such assessment.Companies are separate legal entities from their directors; those directors only become liable for company debts in limited circumstances. This protection encourages entrepreneurship and is central to the health ...