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Personal guarantee
Joewasherein2019
Posts: 65 Forumite
in Loans
Hi there,
With a personal guarantee (that is not secured against anything)
With my partner owing 50% off our house and me the other 50% if things were to go wrong with the business could the bank force a sale of our family home?
The personal guarantee is only going to be on me not
My partner.
We’re extremely confident all will be fine, as we already have enough pre orders to cover the loan and then some. We don’t want to take cash on pre orders until product is made hence business bank loan to cash flow for the next few months, just looking at worse case scenario.
Many thanks.
With a personal guarantee (that is not secured against anything)
With my partner owing 50% off our house and me the other 50% if things were to go wrong with the business could the bank force a sale of our family home?
The personal guarantee is only going to be on me not
My partner.
We’re extremely confident all will be fine, as we already have enough pre orders to cover the loan and then some. We don’t want to take cash on pre orders until product is made hence business bank loan to cash flow for the next few months, just looking at worse case scenario.
Many thanks.
0
Comments
-
Joewasherein2019 wrote: »Hi there,
With a personal guarantee (that is not secured against anything)
With my partner owing 50% off our house and me the other 50% if things were to go wrong with the business could the bank force a sale of our family home?
The personal guarantee is only going to be on me not
My partner.
We’re extremely confident all will be fine, as we already have enough pre orders to cover the loan and then some. We don’t want to take cash on pre orders until product is made hence business bank loan to cash flow for the next few months, just looking at worse case scenario.
Many thanks.
Potentially, if things go really pear shaped then yes. If the loans cannot be paid by the business and the lender comes to you for the money and you cannot afford to pay the loans then there is the potential you will be forced into bankruptcy or have a charging order secured against your share of your home. Then the OR could force the sale of the property if your partner, or perhaps another family member, cannot afford to buy your share of the beneficial interest in the property. That's absolute worst case scenario but it is possible.0 -
Thanks but I imagine before it got to that stage it would be monthly payments agreed etc0
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Joewasherein2019 wrote: »Thanks but I imagine before it got to that stage it would be monthly payments agreed etc
Always prepare for the worst scenario. The matter will be out of your hands.0
This discussion has been closed.
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