Old business overdraft coming back to haunt me – please please help…

IainMacca_2

Hello,

I hope someone can help…..

I got myself into serious debt with a failed business several years ago, I’ve been working very hard ever since to clear my debts and get a clear credit file (so I can get a mortgage) – in a few months I’ll finally be clear and have a clean credit file – woohoo!

But the problem is….

I was a director in another company, which I left around 4 years ago. When we started that company I signed a personal guarantee for the overdraft limit, and stupidly, I never thought to revoke this when I left - and you can guess what’s coming. The company was still trading successfully when I resigned, but they have since closed and HSBC/DG Solicitors have recently contacted me demanding payment up to the limit of the guarantee that I signed.

I told them that I left the company around 4 years ago but they said I was still liable, I was totally floored, anyway I sent them a ‘prove it’ letter.

It took them a couple of months to respond but they eventually sent me a copy of the personal guarantee that I signed more than 5 yrs ago.

I have contacted the directors that were there after I left and they don’t want to know.

I suspect I will be stuck with this debt, my question is:

Can HSBC/DG Solicitors put something adverse on my personal credit file (given that the debt relates to a business)? (This is my biggest worry as I’ve spent years paying off previous bad debts/defaults and am just about to have a clean credit file so don’t want to jeopardise that)

Would I be in a position to offer them a 50% final settlement?

Any other suggestions very welcome.

Thanks very much in advance.

Macca

aimingforadebtfreelife

The debt shouldnt be recorded on your personal credit file as a business transaction plus they would have to register a default at your home address. If you have access to a free trial online credit service - ie experian, sign up for a month free, pull off your credit report and cancel. if the debt aint showing you will be free from it affecting your mortgage app.

Offer them 30% settlement and work their way up. They have to prove they have chased the original people before falling on the easy option - ie the guarantor.

Good luck