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Hello,
So a bit of background.
In 2008 I took a business loan out with RBS, I was only 22 out the time. The loan was for £25,000, and I kept up with payments for 12 months. Unfortunately, the business didn't work and it was dissolved in 2010. I didn't realize at the time that I had signed a deed as opposed to a personal guarantee. The last payment was made against the loan in 2010, and no further correspondence was received until 2018. I understand a deed has a statute of limitation of 12 years as opposed to 6 years.
Mid way through last year, I received a statutory demand for £23,496 from Shoosmiths regarding the debt, I did not have this set aside, and a bankruptcy petition was made. I agreed to pay Shoosmiths £1000 a month for 6 months as a full and final settlement, unfortunately I was unable keep up with these payments, and another Bankruptcy petition has now been made. I have offered to pay £300 a month over 24 months as a full and final settlement, however this has been declined due to failure to keep up with a previous payment arrangement. They are demanding £16,000 upfront which I cannot afford right now. The date for the hearing is the 31st of May, so the opposition needs to be entered over the next couple of days.
I have recently started a business, this is my only source of income, so to be made bankrupt would completely ruin my business and my income for the foreseeable future.
I do have a family friend solicitor who is helping me out free of charge, however I am unsure what the chances of the argument standing up in court are.
His arguments are:
1. The debt is older than 6 years, and no judgement was entered, payments made or disputed within 6 years of the final payment date made to RBS. I understand a deed has a 12 year limitation, however he is stating that as the actual debt is statute barred, there is no debt for the deed to guarantee.
2. RBS do not have the original credit agreement, and they cannot prove the amount of the debt.
3. The bankruptcy petition has stated that the guarantee deed was dated 21st May 2012, however the guarantee deed was actually dated 2009.
What are the chances of these arguments holding up in court? I am extremely concerned about going bankrupt. I understand I should have kept up with the original payment plan, and only have my self to blame. However I am unsure if the amount they are quoting is even correct as I have not seen a credit agreement as they have lost it.
Any help would be appreciated.
So a bit of background.
In 2008 I took a business loan out with RBS, I was only 22 out the time. The loan was for £25,000, and I kept up with payments for 12 months. Unfortunately, the business didn't work and it was dissolved in 2010. I didn't realize at the time that I had signed a deed as opposed to a personal guarantee. The last payment was made against the loan in 2010, and no further correspondence was received until 2018. I understand a deed has a statute of limitation of 12 years as opposed to 6 years.
Mid way through last year, I received a statutory demand for £23,496 from Shoosmiths regarding the debt, I did not have this set aside, and a bankruptcy petition was made. I agreed to pay Shoosmiths £1000 a month for 6 months as a full and final settlement, unfortunately I was unable keep up with these payments, and another Bankruptcy petition has now been made. I have offered to pay £300 a month over 24 months as a full and final settlement, however this has been declined due to failure to keep up with a previous payment arrangement. They are demanding £16,000 upfront which I cannot afford right now. The date for the hearing is the 31st of May, so the opposition needs to be entered over the next couple of days.
I have recently started a business, this is my only source of income, so to be made bankrupt would completely ruin my business and my income for the foreseeable future.
I do have a family friend solicitor who is helping me out free of charge, however I am unsure what the chances of the argument standing up in court are.
His arguments are:
1. The debt is older than 6 years, and no judgement was entered, payments made or disputed within 6 years of the final payment date made to RBS. I understand a deed has a 12 year limitation, however he is stating that as the actual debt is statute barred, there is no debt for the deed to guarantee.
2. RBS do not have the original credit agreement, and they cannot prove the amount of the debt.
3. The bankruptcy petition has stated that the guarantee deed was dated 21st May 2012, however the guarantee deed was actually dated 2009.
What are the chances of these arguments holding up in court? I am extremely concerned about going bankrupt. I understand I should have kept up with the original payment plan, and only have my self to blame. However I am unsure if the amount they are quoting is even correct as I have not seen a credit agreement as they have lost it.
Any help would be appreciated.
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