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Personal guarantee help needed

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  • Personal guarantee help needed

    Hi, hoping for some advice please.

    A few years ago I invested in a friends retail business, they created and signed a personal guarantee to assure me that should the business go bust that within 6 months they would reinburse my investment.

    The lady who I invested in was a friend, so when she had no choice but to liquidate her business I was very understanding and didn't enforce the fact that in the contract stated she would repay in full within 6 months.

    A year later she went into business with her cousin and they agreed that their new business would start paying back my investment, I received payments from both her and from the new company.

    Unfortunately that business also went bust and my friend was left in financial hardship - I of course couldn't force her to honour any payments at that time.

    But, she then moved away, we stayed in contact for a while and I would ask her how she was, but never asked about money - so it was a shock when all of a sudden she started ignoring me,

    Now 3 and a half years on and pushed along by family, I decided to start proceedings to recover my lost money. However her lawyer has come back and said I have breached the contract terms in 2 ways -

    1 - Allowing her more time then stated in the contract to pay

    2- Varying the initial terms of the loan by accepting payments from a new business in connection to the intitial payment and not from the company in the guarantee

    Do they have grounds to counteract my claim?
    My lawyer says I have 50/50 of winning in court so I am lost as to whether I should proceed and potentially lose and have their legal fees to pay as well as my own or whether I should seek for a settlement?

    Other points to add- the personal guarantee listed 3 directors names, however only one signed - does that make them all liable or just her?

    There was wording in guarantee that says payments will be made via methods verbally agreed- could this bite me in the bum if I take it to court?

    I am sorry for the rant, just so unsure what to do- solicitor never gives a straight answer and I am mounting debt with her with each visit.

    Any advice appreciated.

    Tags: None

  • #2
    If the amount of the claim is less than 10,000 then it will be the small claims track and you will not get charged for their solicitor unless you have been unreasonable.


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