Business failed- guarantor for Natwest O/D

Motherofcelticdragons

Hi,

My other half ran his own business for 7 years and had an overdraft with Natwest. The business unfortunately is not viable and he has closed it and is now working a minimum wage job.

His business overdraft, in the company name, is with Natwest. They have closed the account and stated that he is personal guarantor for the overdraft and thus owes them 10k.

He can't find the original paperwork so can't argue in that respect - is there anything he can do? He can not easily afford to repay 10k. 

TIA

Keep_pedalling

Was this a limited company?

Motherofcelticdragons

Keep_pedalling said:

Was this a limited company?

yes it was...

MattMattMattUK

Motherofcelticdragons said:

Keep_pedalling said:

Was this a limited company?

yes it was...

If he signed up to be a guarantor then he is liable, the fact that he cannot find his copy of the paperwork matters little. He can ask them to provide a copy though.

DullGreyGuy

He could do a DSAR with NatWest on himself (not the company) which should produce the original paperwork but assuming he got the overdraft early in the trading of the business then it would be common for a director guarantee

Bookworm105

he will need to be open and honest with the bank and accept that he is going to be held liable so needs to negotiate repayment terms. It is why banks take director personal guarantees for companies that have no real assets that could be easily liquidated and/or to protect against not enough left after said liquidation

what does he own in his own name? Not joint with you, just his own, as that is what they can come after if he does not co-operate.

Motherofcelticdragons

thanks, I assumed this was the case. 

He doesn't own anything at all - no assets, so presume I&E will be done and they'll see it'll take him forever.

What will that do, to have a repayment plan with them, to his credit score? 

silvercar

Worth getting the paperwork from NatWest, it should state the amount he agreed to be a guarantor of. If that is less than the amount owed then he will only owe what he guaranteed.