PLEASE HELP...LTD Company Debt, Personal Guarantee Problem..

londonTiger

spacey2012 wrote: »

I think we can work out who was the brains in the partnership.
Talk about leaving you holding the baby.
I would start saving the bankruptcy fee up and getting your head around the forms.

no need to be a tool about it. Let me guess you have a 9-5 job with a salary so have no idea about the risks in running a business.

OP started a company under capitalised (very common, probably like 99% of all businesses). They over stretched and weren't able to recover from being burgled and lost all their assets - which forced them down under. It can happen to anyone, no need to insult the OP.

DaveTheMus

londonTiger wrote: »

no need to be a tool about it. Let me guess you have a 9-5 job with a salary so have no idea about the risks in running a business.

OP started a company under capitalised (very common, probably like 99% of all businesses). They over stretched and weren't able to recover from being burgled and lost all their assets - which forced them down under. It can happen to anyone, no need to insult the OP.

I have to agree, it's a brave thing to do with the state of the economy........I tip my hat to anyone who starts their own business, if it goes under I have the utmost sympathy.....it takes real bottle to be totally self-reliant and not have the security net of a salary

longtermplanner

You give a personal guarantee without realising the implications and then sign up to an IVA which fails. I am sorry to say but it sounds as though you have MUG written all over you.

The chance of you being able to challenge the 15k debt is about zero - stop clutching at straws and work out what you realistically can do now. Depending on your overall debt level compared to your income, you may need to go bankrupt.

opinions4u

Another one post wonder.

Crystallady

londonTiger wrote: »

How can a debtor under any circumstances regardless of whether they are directors, sole traders or even personal borrowers ever skirt away from the debts by protesting they did not seek independant legal advice. Why should the creditor pay because the debtor was irresponsible (or miscalculated the risks)

I didn't say I agreed with it :huh: - but I know many of the banks came a cropper in the 70's because their managers signed off on guarantees for their business customers ( the borrowers were able to waive the option of ILA) and when the customers said in court that they didn't understand their full liability under the guarantee the courts found in favour of the customer and the banks lost their security.

Needless to say the banks changed their procedures making it compulsory for ILA with all personal guarantees

Thrugelmir

Crystallady wrote: »

Needless to say the banks changed their procedures making it compulsory for ILA with all personal guarantees

There's no way of making it compulsory. However it will be strongly recommended. Which covers the bank.

Crystallady

Thrugelmir wrote: »

There's no way of making it compulsory. However it will be strongly recommended. Which covers the bank.

It is effectively compulsory at the high street bank I worked at. They won't accept guarantees that are not signed at a solicitor's office and said solicitor has to sign to confirm they have given customer ILA.