Personal Guarantee for Business Debt

19lottie82 Forumite Posts: 6,027
Part of the Furniture Combo Breaker
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
    sourcrates Forumite, Ambassador Posts: 27,637
    Part of the Furniture 10,000 Posts Name Dropper Photogenic
    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.
    I’m a Forum Ambassador and I support the Forum Team on the Debt free wannabe, Credit file and ratings, and Bankruptcy and living with it boards. If you need any help on these boards, do let me know. Please note that Ambassadors are not moderators. Any posts you spot in breach of the Forum Rules should be reported via the report button, or by emailing [email protected]. All views are my own and not the official line of MoneySavingExpert.For free non-judgemental debt advice, contact either Stepchange, National Debtline, or CitizensAdviceBureaux.Link to SOA Calculator- The "provit letter" is here-
Meet your Ambassadors


  • All Categories
  • 338.7K Banking & Borrowing
  • 248.6K Reduce Debt & Boost Income
  • 447.5K Spending & Discounts
  • 230.6K Work, Benefits & Business
  • 600.7K Mortgages, Homes & Bills
  • 171K Life & Family
  • 243.9K Travel & Transport
  • 1.5M Hobbies & Leisure
  • 15.9K Discuss & Feedback
  • 15.1K Coronavirus Support Boards