Written Question·Department for Business and Trade·UIN 106832

Companies: Debts Written Off

Tabled: 19 January 2026
Answered: 23 January 2026

Question

Edward Morello

Liberal DemocratWest Dorset

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

Blair McDougall
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 ...

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