Personal Guarantee for Business Debt

19lottie82

I recently closed down my limited company which had built up a fair amount of debt. One of these debts was / is a Capital One credit card, which I didn’t realise had a personal guarantee on it (I know, I know!) The debt is around £30k.

They haven’t started chasing me for the money yet. The guarantee is not secured. My question is, can / will they take me to court for this, and therefore make a claim on my home?

My home is owned outright but I’m only making about £200 a week in my current minimum wage job. 

Although not ideal, a tarnished credit history would be preferable! 

 

sourcrates

If a creditor does resort to legal action, they can also apply for a charging order at the same time.

However, there is a process to follow, and you can have your say at every juncture, to the best of my knowledge, as long as you keep up payments on any CCJ that is granted, further action cannot go ahead.

That is what they "could" do, most likely what will happen is the normal collection process will kick in, letters/calls etc, they should accept a deal commensurate with your available disposable income.