Guarantor Debt

dnalsrammaj

Hi, around 3 years ago I signed a directors' guarantee for a limited company loan with my business partner at the time.

Approximately a year after this the business stopped trading and me and my business partner went our separate ways. We verbally agreed that he would keep all the assets, clients (and the debt) and i would walk away with nothing but experience.

About 2 months after this I started getting letters from Natwest saying that the ltd. company was not making the loan repayments therefore they needed myself and my ex business partner to make them as the guarantors.

They asked me to tell them what i could afford and i showed them that i could afford £2 a month in repayments.

This has gone on for two years, they have written to me every few months to ask if i can afford any greater repayments.

I have recently checked the status of the account and my ex business partner is also making very small repayments and we aren't covering the interest every month.

My question is what are my options?

Can i carry on paying £2 a month til i drop dead..?
Can Natwest take me to court or am i safe because i am contributing?
Is there a way of freezing the interest?

Thanks guys

jonesMUFCforever

Yes -- Yes and No!

They can keep you paying until the debt is repaid as you agreed to guarantee the debt.
You could try an offer to repay a capital amount as a full and final settlement. They might go for it they might not - if you go down this route take legal advice as to how exonerate yourself from the guarantee.