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personal guarenteee for business loan
hi
sorry in advance this is going to be a long one.
please could anyone give me some advice? In November 2015
I signed a personal guarentee for a business overdraft, the business was expanding & the overdraft was increased to £20k. 14 days later the business was destroyed by a fire. I had already used most of the overdraft and then had to pay customer deposits back with the rest ( I was advised to close the company & not pay the customers etc but rightly or wrongly I couldn't do that to people) I explained to the bank what had happened & they sent me a letter saying that because I had signed the guarantee I had to set up a direct debit to start paying them back, We agreed £200 a month, which I did. after a while and with no insurance money I had to request that the payment was reduced as I couldn't pay the full amount which they agreed to. They have contacted me to say that the amount is not enough so have got some solicitors drydenfairfax to recover the debt, they have said on their letter that the debt was from 2008 which is not true it was from 2015. They want me to fill in a financial questionnaire and if making proposals for payment the amount that i can pay. I have spoke to the bank and they are unwilling to take £100 per month which is all i can afford as my tax credits have been stopped, my partner is the only one working as I am unable to work again due to health issues.What can I do ?
sorry in advance this is going to be a long one.
please could anyone give me some advice? In November 2015
I signed a personal guarentee for a business overdraft, the business was expanding & the overdraft was increased to £20k. 14 days later the business was destroyed by a fire. I had already used most of the overdraft and then had to pay customer deposits back with the rest ( I was advised to close the company & not pay the customers etc but rightly or wrongly I couldn't do that to people) I explained to the bank what had happened & they sent me a letter saying that because I had signed the guarantee I had to set up a direct debit to start paying them back, We agreed £200 a month, which I did. after a while and with no insurance money I had to request that the payment was reduced as I couldn't pay the full amount which they agreed to. They have contacted me to say that the amount is not enough so have got some solicitors drydenfairfax to recover the debt, they have said on their letter that the debt was from 2008 which is not true it was from 2015. They want me to fill in a financial questionnaire and if making proposals for payment the amount that i can pay. I have spoke to the bank and they are unwilling to take £100 per month which is all i can afford as my tax credits have been stopped, my partner is the only one working as I am unable to work again due to health issues.What can I do ?
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Comments
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Fill out the form and talk to them.
They can only have what you can afford.0 -
do you own the house?Don't put your trust into an Experian score - it is not a number any bank will ever use & it is generally a waste of money to purchase it. They are also selling you insurance you dont need.0
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What is the guarantee secured on?0
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yes own the house with a mortgage,0
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the guarantee isn't secured on anything,jonesMUFCforever wrote: »What is the guarantee secured on?0 -
the guarantee isn't secured on anything,
If that is really the case then they have dropped a right clanger!
Are you sure that you did not sign something in 2008 and if so could that be secured on property.
A guarantee without security to back it up is a useless piece of paper. Maybe mentioning this to them may well get them to back off a little?0 -
the house doesn't have any equity so the mortgage company actually own it, Its been on interest only since 2015.0
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I am going to have a look for the old paperwork from 2008 and will post on here what it says.jonesMUFCforever wrote: »If that is really the case then they have dropped a right clanger!
Are you sure that you did not sign something in 2008 and if so could that be secured on property.
A guarantee without security to back it up is a useless piece of paper. Maybe mentioning this to them may well get them to back off a little?0
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