Personal Guarantor on Business Lease

Bailesy27

Hi Guys,

We have signed personal guarantor on a business lease which is a limited company. The company will go into liquidation and we are going to go bankrupt. However the terms of the lease seem to imply that the landlord can personally pursue us regardless of whether we are BR or not - is this true or how can that be?

Any help would be apreciated.

blind-as-a-bat_2

It cant, if you could write such a clause into a contract every credit card and loan would include it

Bailesy27

That's what I thought. The dopey solicitor seems to agree but won't swear to it. Thanks for that.

Richard_S

Hi Bailesy,

Bat is spot on.

The landlord / property company can pursue you personally, but any liability is included in your bankruptcy. That's not my opinion, it's a fact.

One thing you'll have to watch out for is the local authority holding you liable for the business rates. You have to get your O.R to go through a Court procedure, I can't remember the name, to release you from the liability to pay rates on the property. Speak to your O.R as soon as possible, otherwise it's probable / likely, that you'll have the thugs from the council knocking at your door.

Regards

Richard

Bailesy27

Hi Richard and thanks for info.

Are you certain about the landlord as it says in our lease he can puruse us regardless.

As for the business rates I can ensure they are paid before we put the business into liquidation if that is the case. Thanks