Personal Guarentee

imastudent

Looking for advice re a PG

Will try and keep this short...

I was company director for 10 years - company liquidation last year - I couldn't find work Im now a student (still actively seeking work)

Ltd company defaulted on loans.... they (lloyds) calling in the personal guarantee. I have asked to see evidence it exists - they sent a copy of charge document and personal guarantee document. There were no ppi on loans... they are not being too pushy yet.... they have sent a income/expenditure form.

Company loan was to pay outstanding Vat and Tax

I have no lump sum to offer settlement..... debt is for 52k... I have very little spare money... trying to budget day to day as a student, I could offer £60-£70 per month max, would they accept? or can they fours e me to sell house? - I tried getting remortgage but as i have bad debts i was declined.

Does anyone have suggestions? Im willing to pay but cant see me ever clearing that amount of debt at the moment with my circumstances.

Has anyone else been in this situation with lloyds
I appreciate any advice x

antonic

If you signed a personal guarantee as a director, then you are liable.

If you backed the guarantee with your house then they can force you to sell your house to pay back the loan.

Any debts that the Company owes to HMRC, in respect of VAT/PAYE/CT, belong to the Company - they are not your personal debts.

BUT you may find that HMRC applies to have the Company wound up if the debt is big enough.

imastudent

Thank you for your reply.

I understand that HMRC debts are owned by the company, but i wanted to point out that the loan (which I personally guaranteed) from Lloyds was used to pay outstanding HMRC debts and interest....

The company was voluntary wound up 18 months after the loan, it was insolvent.

Can they really make you sell your home? I am now married, it is my understanding that my husband has occupancy rights as a non entitled spouse

S1 of the Matrimonial Homes (Family Protection Scotland) Act 1981 states that a spouse has a right if in occupation to continue to occupy the matrimonial home.....

So can Lloyds fource a sale if my husband has occupancy rights as a non entitled spouse?

and as they are a second charge don't they require the permission of my mortgage lender (ie the 1st charge) to force a sale, are my mortgage lender likely to agree a sale if I am on a payment plan (temporary interest only until I find work) - which is paid on time every month.

any help and advise is much appreciated, should I fill in the income/expenditure form or hold off a bit, as I said Lloyds at this stage are not being to pushy and all communications have been reasonable