Personal guarentee

helenj51

We are a limited company but now ceased trading, there are 2 directors of the company. We both had a company vehicle with personal guarentees attached. However, my business partner ordered his vehicle whilst I was on holiday and signed the lease/finance agreement. I did not sign anything as I was away. My car lease ends March 2009 but there is still 2 years left on my ex business partners car. I have paid the balance of my car to the finance company but my ex partner has defaulted on his payments. The finance company are now threatening legal action to recover the outstanding 2 years balance plus additional costs. As I never signed an agreement will I also be held resposible under a personal guarentee (several)?

standupguy

If you did not sign a personal guarantee on your partners car you cannot be held liable on a personal basis.

But if you have signed a personal guarantee that can be utilsed on other company debts then you may be liable.

look closely at the guarantee you have signed to see if it was specific just to your car or whether there is also a clause that covers any other borrowings of the company.

ukbill69

Tell them to take your personally to court see how they go lol