overdraft

tinker007

Hi Please help, I was a director of a company. The company failed and has not operated for over three years, and has now been dissolved. I had to increase my overdraft to keep the company operating until we had no option but to close. My problem is they asked me and my wife to sign for it. Now they say we are personally liable. We cannot afford to pay this, Please help.

Apples2

tinker007 wrote: »

My problem is they asked me and my wife to sign for it. Now they say we are personally liable..

Are you surprised by that at all?

The bank wanted your personal guarantee the money would be repaid, it hasn't been so are after you.
No easy way to walk away from it so you must cut outgoings to the bone until it is repaid, or off to the Debt Charities for help/assistance it is.

tinker007

This was an overdraft for the company and not a personl account.

opinions4u

tinker007 wrote: »

This was an overdraft for the company and not a personl account.

I assume you gave a personal guarantee to honour the company debt.

If so, you have a full liability.

Contact a debt charity or CAB for support off forum if it's a "no chance of being able to pay ever" situation.

If it's a case of looking for ways to reduce spending to meet the commitment then you may be better posting of the Debt-Free Wannabe forum (see the dropdown list at the top right corner of the page).

tinker007

I think so, we we deperate at the time, and confused and just wanted to keep the company going.

Emmzi

if it is more than a few grand and/or you are not working to make any repayments, you need serious advice from a debt specialist like CAB or CCCS.

Unless yiou have a second home to sell or similar and repay - do you have any sizeable assets?

tinker007

we rent, and have one car, and no other assets.

paddyrg

Banks don't lend to small companies without personal guarantees (assuming there are no company assets to lend against - premises, etc) - this is that personal guarantee coming back to bite. Talk to them about your position and work out a payment plan. You owe the money, whether it was spent on the business or a holiday. Sadly :,-( It's tough for small businesses out there :-(

Fiddlestick

paddyrg wrote: »

Banks don't lend to small companies without personal guarantees

That depends entirely on the circumstances.

I set up a new company bank account in December and I was issued a business credit card.

I was not asked to give a personal guarantee as a company director.

paddyrg

Fiddlestick wrote: »

I set up a new company bank account in December and I was issued a business credit card.

I was not asked to give a personal guarantee as a company director.

Wow, excellent service - which bank? I've started several small companies , and always been asked for a personal guarantee for overdraft/cards facilities until there is significant trading history/equity in the business.

Fiddlestick

paddyrg wrote: »

Wow, excellent service - which bank? I've started several small companies , and always been asked for a personal guarantee for overdraft/cards facilities until there is significant trading history/equity in the business.

It was with HSBC.