Count Court Letter PLEASE HELP!

twist2k

Hi

Sorry this may be the wrong board, I was previously a Director of a Ltd company. I resigned as Director last year and the other Director has continued the business, we are still on good terms.

Anyway I had a letter a while ago about an unpaid factoring debt (We factored all our invoices) from a few companys. He said he was sorting this however it has proved hard to speak to person he was given as a contact at Lloyds (I tried a few times to help him out)

Anyway I assumed he had sorted this and got a list of the bad debtors and come to an arrangement. I have just picked up a letter and lloyds TSB factoring have filed papers with the court, now I did not realise we had signed an Indemnity agreement making us personally liable for the debts. Now we both received the same letter, both our names are on it and the amount is £5995.00.

I want to avoid a CCJ at ALL costs and can muster up half the money and pay this within 14 days, however does this clear me of having a CCJ registered agaisnt me, obviously it is up to him how he procedes with regards to his half, my question is, will the court/lloyds see it this way? Or would he have to come up with the rest of his otherwise we both get a CCJ and I am £3K out of pocket?

Anyone help I have tried the contact again at Lloyds with no joy, the Solicitor listed on the Court papers and Cab with all no luck

Someone please help!

anotherpaul_2

If you're joint signatories, it's likely that you are both liable for the entire debt. So paying half isn't going to help unfortunately, unless he can pay the other half.

TFD_2

If you have signed a personal guarantee, then you are personally liable for the full cost. To avoid going to court you have to pay within 14 days of the paperwork received, however you have 28 days from judgement where you can settle the debt in full, and have the CCJ removed from your credit file.

Out of interest, has the company you were director of ceased trading? When my previous company ceased trading, Alex Laurie (who Lloyds TSB factoring were at the time) were quick to get legal on my !!!!

Is it bad debt that has caused there to be a liability on the account? With a factoring agreement, the invoices are refactored after a period of days - typically 90 - at which point the factor removes their funding. if the debtor is still in business you can persue them for the money they owe the company (or the liquidators if the company has now ceased trading).

I've been through something similar with Lloyds factoring before - luckily I managed to resolve before it went to court, so let me know if I can be any help.