Lloyds Tsb

pinkjaney

I had a business of my own and when i started my bank manager at the time gave me a £10k overdraft no advice just the overdraft.

After a year it was dropped to £7k and my new bank manager admitted the old manager had handled the set up of my business wrong and offered me a business loan to get straight. After a lot of hard work unfortatley the business folded and i was devestated. Now i find out the paperwork i signed was also a personal guarantee for the loan and the overdraft now i owe £15,000 but what i dont understand is i had and still have debt with other loans and credit cards which total around £95k and i am paying them via CCCS. I dont understand someone with alot of debt who had defaulted on some payments (personal debt) the bank would just give £15k. The business at the time was just about holding its own. So what do i do now?. I am paying £661 a month to the CCCS, I do have a full time job as does my husband but we are just about keeping our heads above water. I also have a part time job at weekends. HELP any advice would be greatly recieved.I did not declare this to the CCCS because when i joined them my business was still going. Now the bank are demanding the monay back and i really dont know how i am going to pay it. They want me to make a proposal to pay it back but I cant offer to pay back much and any advice on how to proceed would be great.

AMILLIONDOLLARS

Is the bank demanding their money back, did you declare this to CCCS, not sure what your asking here

pinkjaney

I had a business of my own and when i started my bank manager at the time gave me a £10k overdraft no advice just the overdraft.

After a year it was dropped to £7k and my new bank manager admitted the old manager had handled the set up of my business wrong and offered me a business loan to get straight. After a lot of hard work unfortatley the business folded and i was devestated. Now i find out the paperwork i signed was also a personal guarantee for the loan and the overdraft now i owe £15,000 but what i dont understand is i had and still have debt with other loans and credit cards which total around £95k and i am paying them via CCCS. I dont understand someone with alot of debt who had defaulted on some payments (personal debt) the bank would just give £15k. The business at the time was just about holding its own. So what do i do now?. I am paying £661 a month to the CCCS, I do have a full time job as does my husband but we are just about keeping our heads above water. I also have a part time job at weekends. HELP any advice would be greatly recieved.

I did not declare this to the CCCS because when i joined them my business was still going. Now the bank are demanding the monay back and i really dont know how i am going to pay it. They want me to make a proposal to pay it back but I cant offer to pay back much and any advice on how to proceed would be great.

yeslek

that doesnt make the first post any clearer

klare_2

still go ahead and tell the CCCS about the new debt addition and they will do another SOA with you and re-jig it all and send everyone a new one out. You didnt withhold the info about the debt as I read it, its just that your circumstances have changed.
ITs a large amount of money? the total debt, is a DMP the only option available to you?

jonesMUFCforever

You signed a guarantee for the loan? Is there security and did you have to go to a solicitor to get the terms and conditions of the guarantee explained to you?

Alan_M_2

Unless the business was a Ltd company and no charge was taken, she was operating as a sole trader, so is personally responsible for any debts accrued by the business.

If it was a Ltd company you have it made very clear at the time that you were personally guaranteeing the loan, and really if you went this route it was a waste of time setting up a Ltd company.

jonesMUFCforever

What I was getting at was (and OP has not come back to reply to this) is that if he did not get independent legal advice before signing the guarantee (I can't remember the actual case law) then the bank cannot rely on the guarantee or enforce it!