Request from Bank to pay back Business Loan

billybraggtastic

Looking for advice please.

I was a Director of a Ltd Company that went into Liquidation Dec 08. The business had an o/d facility which was guaranteed by me and a fellow director.

Our bank asked us our intentions regarding repayment of outsatnding amount (circa £36k) in Jan 09 and we advised that they should see through the liquidation process - they would be next on the list after preferred creditors (ie HMRC, DWP, etc) and we anticipated that they would receive payment.

One year on and the liquidator has advised that the bank are likely to receive a partial dividend but cannot confirm when or how much at this time. The bank are back on asking me (and I assume my fellow director - our relationship has now broken down) what are intentions are to repay the outstanding amount.

Presently there is no way I can consider repaying anything. I wracked up huge debts trying to keep the business afloat and I have entered into a DAS which will run for 8yrs to pay these other debts off - I hoped that the bank debt would be taken care off with the liquidation.

If the bank get heavy then it will put my home at risk though there is some confusion whether the bank guarantee/security on my property was actually concluded - I have done a search on my title and there was no entry for the bank.

Has anyone got ant advice how I should approach this?

thanks
bbt

ILW

They will probably put a charge on yours and the other directors houses.
A personal guaranty does not form part of the liquidation and they will come after the both of you and probably go for the one that has assets.

TangledMemories_2

I'm in the same boat. I am now being chased for £25k outstanding finance on 3 trucks. All thanks to personal guarantees.
Unfortunately, regardless of the business being wound up...if you sign a personal guarantee, you line yourself up for any financial shortfalls to be covered.
The only thing you would be able to do is try and make an offer.
My solicitor has written to the finance company offering them 10p for every £ as a gesture of goodwill because the moeny will be coming from my grandparents. He has also mentioned that if they were to refuse, they would have to take me to court and make me bankrupt...which would cause me to lose my job (my job is reliant on security clearance) and they would get nothing from me then.
Have you sought legal advice?

billybraggtastic

ILW wrote: »

They will probably put a charge on yours and the other directors houses.
A personal guaranty does not form part of the liquidation and they will come after the both of you and probably go for the one that has assets.

Thanks for the reply.

That's one of the things though they think that the o/d is secured against both our houses at present but it appears to be only secured against the other director.

I am thinking of telling them that I will consider paying 50% of the interest accruing if my fellow director agrees to as well (like an interest only mortgage idea). This way the debt isn't getting any bigger and they can continue to wait for a dividend from the Liquidator. Once they have that it will be clear what we both owe as at the moment we cannot determine this.

billybraggtastic

TangledMemories - again thanks for replying.

Legal advice didn't achieve anything - long story - but may have aggravated some of the other issues I had.

If they don't accept my proposal above then I think I will need to bite the bullet and get a lawyer involved.

jonesMUFCforever

I thought that HMCR etc no longer have preferential status in relation to debts.

billybraggtastic

ILW wrote: »

They will probably put a charge on yours and the other directors houses.
A personal guaranty does not form part of the liquidation and they will come after the both of you and probably go for the one that has assets.

Just trying to clarify matters in my mind.

What is meant by a 'charge' and is this applicable in Scotland? At present there are 2 Inhibitions on my property related to other debts accrued through the business and which I am currently paying through a DAS. (both these companies had a Charge for Payment granted against me)

If it is an Inhibition that the bank places on me (my property), I am not sure if there is any value attached. If matters were to deteriorate and head towards sequestration then I believe that the Inhibtions have a higher ranking than other creditors. What happens when there is more than one inhibition - are these ranked in any way? ie the first one lodged has first bite of the pie?

cheers
bbt