Personal Guarantee

chewback

Hi,

I had a company that went under and I had a PG with a company. The debt started at £8k and I came to an arrangement whereby I paid £100 per month. The debt increased to £10k because some life insurance policies were cancelled and the commission was clawed back. They came back to me and after a lot of arguments I increased the payment to £250 per month. They have come back again and are saying that I need to increase the payments to £350pcm.
I am self employed and my income is variable and I cannot commit to £350 per month. I have offered to pay 10% of my net income after tax per month but they will not accept this.
They are now saying that they will take me to court.
My question is, can I get a CCJ if am already paying them please?

BoGoF

Yes you can

WhenIam64

Yes you can

Well, yes but only if you want one. To get a CCJ you'd have to be taken to court. They would have to prove the terms of the guarantee were applicable and you would have to fail to pay a judgment within 30 days.

At a hearing you can raise the issue of affordability should you lose, and have the court decide what level payments are due (and therefore how long). You'd still have the CCJ though.

Letting it go to court means you are trading affordability for reputational damage as regards your credit rating. Depends if you need the cash or the credit rating.

chewback

I absolutely, do not want a CCJ but they won't accept my payment plans

ToxtethO'Grady

You have to show that you are paying, they will say they won't 'accept' the payment and if you don't pay anything it makes it easier to go for a CCJ.
If you pay them the amount you feel you can afford, and back that up with your income and expenditure, they will find it harder to take it further.
They shouldn't send your payment back to you so they've 'accepted' it. If the payment is returned or bounces back, keep the proof of that.
If they take it further you have proof they were refusing your payments.


Speak to Business Debtline they can do your income and expenditure for you showing your variable income and advising you on what to offer to them.


https://www.businessdebtline.org/

WhenIam64

Good suggestion by TOG. As well as an I&E, you should also have a cash-flow forecast too.

Being in business is all about growing your cash flow so you can expand to a level you are happy with. Growing your business is difficult.Doing it while paying off a debt at an unreasonable rate is doubly so.

You just have to use your negotiation skills to show that an unaffordable repayment plan will mean they won't get their debt repaid as it will kill the whole show and so too will a CCJ. A smart creditor will understand that.