Solicitor chasing accountants

Loubieblog0506

Hi, I was a gaurantor for my brother on a rented accommodation but he failed to pay his rent, he was in receipt of dss but when he received this money he never paid it to the LL . My brother has been evicted from the property and now as gaurantor I am being chased for the money at the time when I signed the agreement I was in full time employment but I since left that job and became self employed as a director of a business. Now the solicitors are writing to my accountants with regards to this matter on chasing the owed money is this allowed how did the solicitor know I was now self employed

I am worried because a good friend works at the accountants and I don't want them being branded anything bad due to this matter an also now my business is struggling I am not going to be able to foot the bill of the owed rent arrears so it is looking like that I will be getting a CCJ

terryw

I assume that you are a director of a limited company, in which case much information is in the public domain.

Are you not better to contact the creditor or his solicitor, explain your circumstances and make a reasonable offer to pay by installments?

Loubieblog0506

That would be correct, I have spoken to them at great lengths and they are not wanting to agree anything. I know I should have never agreed to be a guarantor at the start but I was trying to help him and his partner out at the time.

I am just worried that they will start requesting money or stuff from the accountant now but surely they would have to get court to allow this and I would have to be involved

terryw

I just don't know about the solicitor contacting the accountant. It does look unusual though. Perhaps someone else will join the thread with more knowledge.

Bear in mind though that if a CCJ is obtained then the solicitor could well apply for an Order to Obtain Information where you will have to give all sorts of information. Here is a link:
http://www.direct.gov.uk/en/MoneyTaxAndBenefits/ManagingDebt/Makingacourtclaimformoney/DG_195828

Sorry about you having to pay as a guarantor.

anselld

I am not an expert but it seems to me that the accountants of your limited company should have no involvement with the matter. You were a guarantor as an individual whereas the limited company is a separate legal entity.

Obviously you (personally ) can get a CCJ and can be chased in various ways to pay out of personal income and/or assets which may at some point include your personal interest in the limited company. But the liability is entirely yours as an individual.

You should seriously think about trying to pay what you owe, however in the meantime advise the accountant that it is a personal matter and they should decline any request for information.