Company Loan with a personal guarantee

flip-flop-fly

Hi I have a company loan, I have booked a date for BR and I have a question, I will resign as a Director of my formar company (there were 2 of us). The company has not been trading for 18 months but we could not close as we owed the bank a loan and were not in a position to pay off.

So each month we have been paying in to keep the account in credit, as the company is its own entity I know these debts are not mine. However the bank asked for a personal guarantee that we both signed.

Do i list these debts on my SOA ? will the bank be a creditor

Or will the bank just pursue the other director for the full amount or half ?

The business is the main reason for my spiralling debt and insuing BR, its all so stresfull

Thanks

tigerfeet2006

As you have both signed personal agreements then the bank will pursue the non-br for any debts.

flip-flop-fly

Do i need to list these on my SOA ?

I have been paying a monthly amount to keep the business account ticking over using my Credit and is part of the reason I am now in so much trouble.

Many thanks for quick responce it really helps put your mind at ease, mine is just whizzing, my poor family !!

flip-flop-fly

Does any one know weather i need to list my personal guarantee from the business on my SOA ?

I cannot imagine the bank chasing me once i am bankrupt, but at the moment i pay into this account every month to service the company debt as it is me they chase payments are not made. this is another £300 p/m debt that i currently service on top of the Credit Cards etc etc that is just to meet the minimum payments

fiveyearplan

Yes, you need to list the company debt on your BR forms because you had a personal guarantee. I'd stop making the payments now.

Tinytim

Hi FFF,

You situation is very similar to mine, and I did list the personal guarantee on the SOA. My co-director as was is not going BR, and the bank have confirmed that the guarantees were joint and several, meaning they will go after him for the full amount. However, the bank have privately told him that as he has no funds, and very little equity, they will in all probability write it off after getting to default stage, as there is little point in spending money chasing what isn't there; such a shame the same attitude can't apply for debts incurred personally.