Please Please can anyone help!!!!!!!!!

stressmam

This is the situation, my husbands Ltd company was liquidated last year due to customers who owed him money going bankrupt leaving him unable to pay his creditors. This devastated both of us as we have never owed anybody anything before and always been very carefull with money. Being Ltd the debts would be paid off as much as possible when the company was liquidated but one creditor has come to my husband saying that when he signed the application form it said director guarantees any payments should the company fail to do so and so he was liable for the full amount. We wrote to them saying he had never given guarantees to any creditors but they sent a copy of the form with his signature(my husband was told by rep just sign the app form and we will open account. He didn't see any small print, done quickly by fax) We offered a without prejudice payment and they wrote back asking about other personal debts which he sent them. Months went by and he heard nothing till a notice from a debt recovery landed saying be back in 7 days with stat demand then they would file for bankrupcy. Contacted the creditor saying he was waiting for them to consider his offer and they said he hadn't given enough info(now wanted monthly outgoings) Can anyone help please this is making me seriousliy ill CAN THEY DO THIS??????????

debtinfo

Hi, if he signed a personal guarantee then they can come after him for the money. That does include pressing for bankruptcy. Whether they will take it that far (many threaten but dont go for bankruptcy) may depend on whether they think you have the assets to pay them. How much is guaranteed and do you have any assets

stressmam

Thanks for answering. The amount is just under £12,000 and we have our home. Can they go for bankrupcy when he has offered an amount and they havn't as yet turned it down? It all seems so unfair as no other creditors used this sly tactic?
Thanks

So_Sad_Angel

Hi,

It may be worth getting legal advice to check the validity/enforceability of the original contract....don`t offer any further settlements without doing this. By all means let the creditor know that you are speaking to a lawyer to check the contract.

Good luck,

debtinfo

they can go for bankruptcy as technically the whole debt becomes due immeadiatly (as opposed to a loan where only that months payment is due). do you have any other personal guarantees that might come out of the woodwork, is there an equity in the property

fiveyearplan

As SSA says, get the contract checked out by a legal person.

FYI - if you owe someone £750 or over they can apply for your bankruptcy.

stressmam

Thank you all for looking at my problem. Do you know if they do serve the stat demand this week can we get it set aside due to my husband trying to sort it out with them. Also when does he get to stand up for himself? Does he get a chance in court.?
Thank you

stressmam

We own property in joint tenancy so half equity is husbands but house is mortgaged to max 75%. There are no more guarentees we didn't think we had given any but the rep for this company was very sly, we would not have given a guarantee to just one creditor. All those debtors who owed us walked away scott free and the buck has stopped with us. As the company say my husband is liable should he not have had a credit agreement?

stressmam

Just something I have noticed the debt they are asking for is £12,000 but they had originally agreed a credit limit of £7,500.

SouthCoast

You may like to speak to Business Debtline about the situation:

http://www.bdl.org.uk/

Tinytim

Stressmam, please do call business debtline as SouthCoast has said.

I have never known of a directors personal guarantee being given without the director being required to take legal advice first. In all instances I have come across, the guarantee has been a separate legal document which has been signed in front of the solicitor giving the advice, and witnessed by him. This doesn't mean it can't be part of the application, but you really do need to get some advice and not just accept that the guarantee is valid. I certainly wouldn't offer anything until you are certain your are liable.