Personal guarantee for company loan

alwayssavingmoney

I have provided a personal guarantee for a company loan. The loan company are now wanting repayment for the loan as the company has been wound up. Originally I agreed with the bank to pay the monthly amount which has happened for the past 18 months. I then stopped paying and now the bank want the full amout and are threatening court action. The outstanding amount is £11,000. Can anybody advise if it is possible to negotiate with the lender a settlement figure now and if so what the % is likely to be. (i.e if I offered then £6000 as a final payment may they accept??)

Any advice appreciated.

Rafter

If you have the means to pay the £11,000 over a reasonable period then that is the amount they will demand.

If you can demonstrate that you can't afford that, then they might accept a lower offer. I'm not sure how you stand with a personal guarantee though and whether some record might appear on your credit file.

R.

alwayssavingmoney

Had a conversation with the agency that are now handling the outstanding debt for the bank. I said I'd be keen to make an offer of a final payment to settle the amount and suprisingly they said they could look at accepting an offer between 50% and 75% of the outstanding amount straight away without even talking to the bank, anything less would need to be passed back to the bank for approval. This is being dealt with by the commercial division of the agency as it was for a company overdraft so not sure if anybody else has experience of this situation. Also I'm keen to understand the impact on my personal credit profile.

It hopefully goes to show it's good to talk!

Many Thanks in anticipation.

jonesMUFCforever

Was the guarantee backed up with security.
If it was I would expect them to get all their money back - if it was not backed with security then you are in a stronger position to negotiate.

In today's market I would think any bank would be pretty stupid to turn down your proposal to pay off the debt monthly - but what do I know?