Guarantor business overdraft, company liquidated, debt not on my credit file?

nomorecc

Hi All

I was a personal guarantor for a business that folded and the overdraft was £10k.

The company was folded and ended up liquidated - Natwest contacted me to pursue the monies

Natwest have now sold this debt to Moorcroft.

BUT IT IS NO WHERE ON MY CREDIT FILE WHATSOEVER!

Where do I stand with defaults on this debt (I assume the business would have got the default??)

I'm trying to recover my personal credit and have a year left but don't know where this debt is?

Can they sue me for it, what can be done with this debt, can I get a personal default if I refuse to pay it?

Currently on £1 a month.

DullGreyGuy

There is no legal requirement for debts to appear on a credit reference agency, if they will or won't report it is up to them. 

Were they to litigate and get a county court judgement then that would go on the CRAs as thats done by the court system not the creditor. 

MattMattMattUK

nomorecc said:

Hi All

I was a personal guarantor for a business that folded and the overdraft was £10k.

The company was folded and ended up liquidated - Natwest contacted me to pursue the monies

Natwest have now sold this debt to Moorcroft.

BUT IT IS NO WHERE ON MY CREDIT FILE WHATSOEVER!

Where do I stand with defaults on this debt (I assume the business would have got the default??)

I'm trying to recover my personal credit and have a year left but don't know where this debt is?

Can they sue me for it, what can be done with this debt, can I get a personal default if I refuse to pay it?

Currently on £1 a month.

They cannot "sue" you, they will just take you to court, obtain a CCJ and then take action to enforce the CCJ. The CCJ, unless satisfied within thirty days of being granted, would appear on your credit report.

nomorecc

I'm in a payment plan with them.

I think what I want to understand is that if for whatever reason I don't make payments, can they still default me or will the business have taken that hit?

Hoenir

nomorecc said:

I'm in a payment plan with them.

I think what I want to understand is that if for whatever reason I don't make payments, can they still default me or will the business have taken that hit?

The business is no longer. You will be personally pursued for the debt. 

nomorecc

Hoenir said:

nomorecc said:

I'm in a payment plan with them.

I think what I want to understand is that if for whatever reason I don't make payments, can they still default me or will the business have taken that hit?

The business is no longer. You will be personally pursued for the debt. 

I have been - I am paying £1 a month.

Now that it is with a DCA (Moorcroft) does it fall under FCA guidelines?

Is there any chance I too personally could get a default for this debt, even though it was for the business?

Hoenir

nomorecc said:

Hoenir said:

nomorecc said:

I'm in a payment plan with them.

I think what I want to understand is that if for whatever reason I don't make payments, can they still default me or will the business have taken that hit?

The business is no longer. You will be personally pursued for the debt. 

I have been - I am paying £1 a month.

Now that it is with a DCA (Moorcroft) does it fall under FCA guidelines?

Is there any chance I too personally could get a default for this debt, even though it was for the business?

Irrespective of whether a default is issued you've a ball and chain attached to your leg. 

nomorecc

Hoenir said:

nomorecc said:

Hoenir said:

nomorecc said:

I'm in a payment plan with them.

I think what I want to understand is that if for whatever reason I don't make payments, can they still default me or will the business have taken that hit?

The business is no longer. You will be personally pursued for the debt. 

I have been - I am paying £1 a month.

Now that it is with a DCA (Moorcroft) does it fall under FCA guidelines?

Is there any chance I too personally could get a default for this debt, even though it was for the business?

Irrespective of whether a default is issued you've a ball and chain attached to your leg. 

How exactly?

Isn't it exactly like any other debt of mine?

i.e defaulted cc / loans 

sourcrates

You appear to be a little uncertain as to the default process.

The debt will have already defaulted, a default signifies the ending of a financial relationship between two parties after a certain period of non payment by the company whose name the account was in.

Debts only default once, and only after a default notice has been issued, and not complied with.

The account will then be terminated and the default process will complete when the account is closed.

This debt will have/or will still, show on the credit file of the company concerned for a period of 6 years.

You may have been legally liable for the debt, but you were not the named debtor on the account. just because you were liable for the debt, it does not mean it will automatically appear on your credit file, it should only show on the file of the company named on the account.

If Moorcroft are not reporting the debt now, its unlikely they will start doing so.

Hoenir

What are the terms of the personal guarantee you signed. As a business debt, does interest continue to accrue? Do you have other assets that a future claim can be made against? 

nomorecc

I'm not sure on the details of the business debt... it was for an overdraft.

This debt has now been sold to moorcroft so like I say the only thing i'm concerned about is.

If I don't pay them, can they register a default against me personally?

And seeing as it's moorcroft can I continue to make the £1 payments (which they have already accepted btw and have done for a few months).

My concern here is:

- Getting a personal default for this debt if it has / hasn't been defaulted against the company as it is now a personal liability debt.

- Them chasing for more even though they have accepted £1 a month 

- It appearing on my credit file.