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  • FIRST POST
    • chewback
    • By chewback 16th Apr 19, 7:24 PM
    • 64Posts
    • 48Thanks
    chewback
    Personal Guarantee
    • #1
    • 16th Apr 19, 7:24 PM
    Personal Guarantee 16th Apr 19 at 7:24 PM
    Hi,

    I had a company that went under and I had a PG with a company. The debt started at 8k and I came to an arrangement whereby I paid 100 per month. The debt increased to 10k because some life insurance policies were cancelled and the commission was clawed back. They came back to me and after a lot of arguments I increased the payment to 250 per month. They have come back again and are saying that I need to increase the payments to 350pcm.
    I am self employed and my income is variable and I cannot commit to 350 per month. I have offered to pay 10% of my net income after tax per month but they will not accept this.
    They are now saying that they will take me to court.
    My question is, can I get a CCJ if am already paying them please?
    Last edited by chewback; 16-04-2019 at 7:45 PM. Reason: grammar
Page 1
    • BoGoF
    • By BoGoF 16th Apr 19, 8:13 PM
    • 4,239 Posts
    • 3,767 Thanks
    BoGoF
    • #2
    • 16th Apr 19, 8:13 PM
    • #2
    • 16th Apr 19, 8:13 PM
    Yes you can
    • WhenIam64
    • By WhenIam64 17th Apr 19, 6:59 AM
    • 380 Posts
    • 188 Thanks
    WhenIam64
    • #3
    • 17th Apr 19, 6:59 AM
    • #3
    • 17th Apr 19, 6:59 AM
    Yes you can
    Well, yes but only if you want one. To get a CCJ you'd have to be taken to court. They would have to prove the terms of the guarantee were applicable and you would have to fail to pay a judgment within 30 days.

    At a hearing you can raise the issue of affordability should you lose, and have the court decide what level payments are due (and therefore how long). You'd still have the CCJ though.

    Letting it go to court means you are trading affordability for reputational damage as regards your credit rating. Depends if you need the cash or the credit rating.
    Unlike some here, I am not omniscient. If I am wrong correct me. I won't take offence.
    • chewback
    • By chewback 17th Apr 19, 9:29 AM
    • 64 Posts
    • 48 Thanks
    chewback
    • #4
    • 17th Apr 19, 9:29 AM
    Ccj
    • #4
    • 17th Apr 19, 9:29 AM
    I absolutely, do not want a CCJ but they won't accept my payment plans
    • ToxtethO'Grady
    • By ToxtethO'Grady 18th Apr 19, 4:39 PM
    • 215 Posts
    • 106 Thanks
    ToxtethO'Grady
    • #5
    • 18th Apr 19, 4:39 PM
    • #5
    • 18th Apr 19, 4:39 PM
    You have to show that you are paying, they will say they won't 'accept' the payment and if you don't pay anything it makes it easier to go for a CCJ.
    If you pay them the amount you feel you can afford, and back that up with your income and expenditure, they will find it harder to take it further.
    They shouldn't send your payment back to you so they've 'accepted' it. If the payment is returned or bounces back, keep the proof of that.
    If they take it further you have proof they were refusing your payments.


    Speak to Business Debtline they can do your income and expenditure for you showing your variable income and advising you on what to offer to them.


    https://www.businessdebtline.org/
    • WhenIam64
    • By WhenIam64 19th Apr 19, 5:03 AM
    • 380 Posts
    • 188 Thanks
    WhenIam64
    • #6
    • 19th Apr 19, 5:03 AM
    • #6
    • 19th Apr 19, 5:03 AM
    Good suggestion by TOG. As well as an I&E, you should also have a cash-flow forecast too.

    Being in business is all about growing your cash flow so you can expand to a level you are happy with. Growing your business is difficult.Doing it while paying off a debt at an unreasonable rate is doubly so.

    You just have to use your negotiation skills to show that an unaffordable repayment plan will mean they won't get their debt repaid as it will kill the whole show and so too will a CCJ. A smart creditor will understand that.
    Unlike some here, I am not omniscient. If I am wrong correct me. I won't take offence.
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