Do I owe this money?

DairyLady

A few years ago I was involved in a company.

For some foolish reason the company needed to borrow some money. The lender wanted me as the borrower and I agreed.  The money was sent direct to the company, not to me.

I thought the company would be a success.

Sadly my fellow director wasn't quite as honest.

I resigned and left the company.

The loan was never repaid. 

Now I am being chased.

Am I stuffed?  Is there anything I can do?

Getting a tad worried, as I can't afford the debt. I know I was stupid etc.......

Baldytyke88

How much have you got in assets, can you make any payments?

https://www.citizensadvice.org.uk/debt-and-money/debt-solutions/bankruptcy/before-you-go-bankrupt/check-if-going-bankrupt-is-right-for-you/

DE_612183

was there any formal agreement / contract of regarding the loan and the re-payment?

Are you still in contact with your "fellow director"?

You say you were "involved2 in the company - but were you also a director?

What is the status of this company now?

Did you take a personal loan - or was it a business loan and you acted as guarantor?

Hoenir

DairyLady said:

The lender wanted me as the borrower and I agreed.  

As a Director you provided a personal guarantee for the money advanced ? 

Unfortunately you remain on the hook if the loan is defaulted on. Irrespective of your current relationship with the company.  

DE_612183

so you took out a personal loan, then you loaned money to the company ( was there any formal agreement to this )?

If the lender wanted you as the borrower - what went down on the loan application under Purpose of Loan?

They should not have loaned you money to bail out a company that is a separate entity.

Are you able to name the lender?

DairyLady

DE_612183 said:

so you took out a personal loan, then you loaned money to the company ( was there any formal agreement to this )?

If the lender wanted you as the borrower - what went down on the loan application under Purpose of Loan?

They should not have loaned you money to bail out a company that is a separate entity.

Are you able to name the lender?

No,

The loan came from a third party to me - but was paid directly to the company. 

I didn't see any of the money.

Looks like I am stuffed from earlier kind replies and do not have the means to repay.

I am self employed -  so that income would go if I was bankrupt.

There was a guarantor and she was liable to repay in the event of my death.

Which isn't really the answer!

sourcrates

DairyLady said:

There was a guarantor and she was liable to repay in the event of my death.

If there was a guarantor, why are they chasing you?

Just tell them you can`t pay and refer them to the guarantor.

They may say and threaten a lot of things but unless that loan was secured on your property (if you own one) then they can`t make you bankrupt or force sale of that property.

And if you can`t pay what they are asking, then there`s nothing they can do basically.

Mr_Blue52

I used to work for a high street banks commercial recovery team & have come across this situation many times. It looks like you may have signed a personal or directors guarantee. If the company defaults on the loan and is unable to repay the debt, then the lender can chase you for the money irrespective of you leaving the company. 

I would speak to the lender & tell them that you are unable to repay the debt. They might ask you to complete an income & expenditure form to assess your affordability. They might even accept token payments.

I would not ignore the debt as it could make the situation worse depending on the amount of the debt 

RAS

How long ago was "a few years ago"?