Personal Guarantee Help!

jamesd

What you should do now is contact one of the free debt advice charities. Tell them your whole financial situation, including the business and personal debt situation and your income. They will consider whether bankruptcy after selling the house looks like the best route.

Vectis

It would perhaps help if the OP stated how much of the loan is left to repay. There's a big difference between owing £1000 and £100,000.

I'd also rather hear the OP asking for ideas on how to repay what they owe rather than ideas on how NOT to repay it.

Chrisblue1962

Hi, I am not in business but noted that the OP says

“My business has gone bust due to bad debt, having to close my business.”

Was this one or a number of customers who defaulted on payments ? Surely, if it was just one bad debt then the overall business model was sound and you could keep the business afloat? If it was a number of bad debts then the real cause of the business failure may lie elsewhere...

I'm assuming that the business was not set up as a limited company hence fact that bank are chasing OP for oustanding loan.

DevCoder

It doesn't matter if it was setup as a limited company as the bank had a personal guarantee on the loan with a charge on the property.

All other debt which has no PG or DG will fall away with the company if it was limited, however any guaranteed debt will remain.

Duke203

ljohnson wrote: »

My business has gone bust due to bad debt

ljohnson wrote: »

Can anyone suggest a way I can avoid paying [my debt]

Seems to me you are trying to transfer the bad debt from yourself to your bank. Did you get any personal guarantees from your debtors?

Brassedoff

Hi, I am a Business Consultant and company director. I made the same mistake as you several years ago. Mine cost me £75,000!

Do you share your home with someone else?
Do you have kids?
Can you make an offer to pay?
Is the PG live? By that you may have given one to buy the Business, but if you paid that off and then took out new financing, they may not have call on it. You gave a PG for that?

The bank will not often realise the asset if you can earn or if its half owned with the wife/partner. That leaves the bank only being able to go for a charging order.


Whatever you do, keep it out of the high court. They will put £5K on the cost.

Any other info abut the banks powers from someone who has been there, answer the above.

Chin up, banks don't have the power you might think

jonesMUFCforever

Brassedoff wrote: »

Hi, I am a Business Consultant and company director. I made the same mistake as you several years ago. Mine cost me £75,000!

Do you share your home with someone else?
Do you have kids?
Can you make an offer to pay?
Is the PG live? By that you may have given one to buy the Business, but if you paid that off and then took out new financing, they may not have call on it. You gave a PG for that?

The bank will not often realise the asset if you can earn or if its half owned with the wife/partner. That leaves the bank only being able to go for a charging order.


Whatever you do, keep it out of the high court. They will put £5K on the cost.

Any other info abut the banks powers from someone who has been there, answer the above.

Chin up, banks don't have the power you might think

If OP does have wife and kids then the bank would have taken additional steps to overcome any mitigating interests in the property. A form would have been sent to the solicitor of the wife's choice to have the terms made clear to her what might happen in the case of a default.
Banks don't want to make families homeless but with the initial attitude of OP here he will have to make an offer to repay or face the consequences.
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