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Hi
I urgently need some advice regarding a business being a guarantor on a loan.
Myself and a colleague originally set up a business with loans from family members (both families). The loans were made to us as individuals with the business acting as the guarantor to make the repayments. We repaid most the loans over the first 3 years of trading.
My colleague left the business several years ago and so I have been making payments for the loans by myself but his family are now chasing the business and me for the total outstanding amount of the loan.
I understand that the business will need to repay the loan as it acted as the guarantor.
My question is can the business take any legal action against my ex colleague to recoup the loan payments as he was named as the original debtor on the loan agreement?
Any advice would be greatly appreciated.
I urgently need some advice regarding a business being a guarantor on a loan.
Myself and a colleague originally set up a business with loans from family members (both families). The loans were made to us as individuals with the business acting as the guarantor to make the repayments. We repaid most the loans over the first 3 years of trading.
My colleague left the business several years ago and so I have been making payments for the loans by myself but his family are now chasing the business and me for the total outstanding amount of the loan.
I understand that the business will need to repay the loan as it acted as the guarantor.
My question is can the business take any legal action against my ex colleague to recoup the loan payments as he was named as the original debtor on the loan agreement?
Any advice would be greatly appreciated.
