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  • FIRST POST
    • Daveofspade
    • By Daveofspade 13th Oct 18, 6:08 AM
    • 3Posts
    • 0Thanks
    Daveofspade
    Loan via split personal guarantee help
    • #1
    • 13th Oct 18, 6:08 AM
    Loan via split personal guarantee help 13th Oct 18 at 6:08 AM
    Hi all
    Need some advice. My company got a large loan for a kit out a few of our shops from shawbrooks bank, sadly the business failed shortly after, mainly due to a falling out of the partners (one guy stealing tools other guy pinching from the tills). The 6 directors had personal guarantees with the loan joint and several. As the company closed and sold, the loan was called in.

    I explained why the company failed and made an agreement with the senior non performing loans manager, who seemed like a reasonable chap, that they will get the share of each individual guarantors to their maximum ability ie court and going after equity before they go to anyone who has paid their share (have this on recording and email).
    So I have paid my share, think most of us have although were not on talking terms. Then a week later I recieve a letter from 'debt recoveries' saying that the loan has been called in so I need to pay the balance of the loan? Clearly they couldn't have taken whoever hasn't paid to court etc in that time.

    Do I ignore the letter? Or phone them and tell them my agreement with the non performing loans manager?
    I tried calling the manager several times since but they haven't answered

    Many thanks
    Dave
Page 1
    • zx81
    • By zx81 13th Oct 18, 7:38 AM
    • 19,090 Posts
    • 20,363 Thanks
    zx81
    • #2
    • 13th Oct 18, 7:38 AM
    • #2
    • 13th Oct 18, 7:38 AM
    You can try telling them about the agreement, but unless it's been put in writing as a formal arrangement or chance to the contract, it's unlikely to carry any weight.

    Don't ignore it.
    • dealer wins
    • By dealer wins 13th Oct 18, 10:43 AM
    • 6,031 Posts
    • 11,669 Thanks
    dealer wins
    • #3
    • 13th Oct 18, 10:43 AM
    • #3
    • 13th Oct 18, 10:43 AM
    As a guarantor you (and the others on the agreement) are 100% liable for the debt im afraid.
    Choose life
    • Daveofspade
    • By Daveofspade 13th Oct 18, 3:49 PM
    • 3 Posts
    • 0 Thanks
    Daveofspade
    • #4
    • 13th Oct 18, 3:49 PM
    • #4
    • 13th Oct 18, 3:49 PM
    I have been in touch with the other Guarantors it seems I'm the only one who received the letter to pay the balance.
    Is this normal for them to single out one person for the whole lot?
    as I'm the lowest earner and cant afford the balance by a long stretch.

    Any place I can get free advice on how to handle this without going bankrupt and losing my home?
    • jonesMUFCforever
    • By jonesMUFCforever 13th Oct 18, 5:01 PM
    • 25,241 Posts
    • 12,479 Thanks
    jonesMUFCforever
    • #5
    • 13th Oct 18, 5:01 PM
    • #5
    • 13th Oct 18, 5:01 PM
    It depends - if they think you will pay then they will chase you.
    As another member has said - you are all liable on a joint and several basis - there is no such thing as 'my share'.
    What goes around - comes around
    give lots and you will always receive lots
    • Gaz83
    • By Gaz83 13th Oct 18, 5:41 PM
    • 3,556 Posts
    • 6,767 Thanks
    Gaz83
    • #6
    • 13th Oct 18, 5:41 PM
    • #6
    • 13th Oct 18, 5:41 PM
    There's no such thing as your 'share' in a joint and several liability loan.

    If you've paid something, and the others haven't, they'll go after you as they'll reckon you're the one most likely to pay.
    "Facism arrives as your friend. It will restore your honour, make you feel proud, protect your house, give you a job, clean up the neighbourhood, remind you of how great you once were, clear out the venal and the corrupt, remove anything you feel is unlike you... [it] doesn't walk in saying, "our programme means militias, mass imprisonments, transportations, war and persecution."
    • normanna
    • By normanna 14th Oct 18, 8:14 AM
    • 46 Posts
    • 34 Thanks
    normanna
    • #7
    • 14th Oct 18, 8:14 AM
    • #7
    • 14th Oct 18, 8:14 AM
    No such thing as a 'split' personal guarantee. You are all liable to pay the whole debt I'm afraid. Paying 'your share' while morally the right thing to do doesn't affect liability.

    Sorry,
    • Daveofspade
    • By Daveofspade 14th Oct 18, 2:44 PM
    • 3 Posts
    • 0 Thanks
    Daveofspade
    • #8
    • 14th Oct 18, 2:44 PM
    • #8
    • 14th Oct 18, 2:44 PM
    So now that itís clear they lied to me which is of no legal significance. What are my options as I canít afford to pay the remaining balance . Is there anyway out and making them go for the other guarantors? Or do I have to go bankrupt?
    • zx81
    • By zx81 14th Oct 18, 3:08 PM
    • 19,090 Posts
    • 20,363 Thanks
    zx81
    • #9
    • 14th Oct 18, 3:08 PM
    • #9
    • 14th Oct 18, 3:08 PM
    They will also go after the other guarantors regardless if they feel they will get anything, so you don't need to do anything there.

    Talk to them about what you can offer and a repayment plan. You can go bankrupt if you want, but it may be a little drastic at this stage.
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