Hi - PG problem

[worrier]

Hi Everyone,

I've read through some of the other threads with interest.

My husband gave 3 personal guarantees for his business, two with HSBC bank and one for the lease on the premises. He was diagnised with MS in 2004 and has not really been involved in the business since 2008 when he resigned as director but still kept the liability as I became director and he was happy to keep it.

However he died in August last year, the company then liquidated in November, this was unconnected. Unbeknown to me (and I think him) the liability passed to his estate after death. However, I used the money from his life insurance, which formed part of the estate (I have checked) to pay off the mortgage.

The claims on the estate are approx £200k which is all of the life insurance money. I am currently unemployed and I don't have the money from the estate. At the time the company was still trading and looking no shakier than it had for the last 10 years.

3 months later the bank haven't provided any documentation and I've no idea when they will. The landlord has got a claim for £120k in dilap, which I'm disputing, and 3 months rent arrears. I don't know why the solicitor he used allowed him to sign something with a basically unlimited guarantee on a fully repairing lease on a building which was not in good condition and didn't recommend that he had the building surveyed.

The liability is joint and several with another director but he doesn't have any money to contribute.

I'm really worried about the future as I have a 6 year old son to support and I think I'm going to lose the house as the estate will be insovent. Any help on this will be gratefully appreciated.

Thank you

[bluebottle]

Re: Hi - PG problem

Hi Worrier,

I have read through your post carefully to ensure I have read it correctly.

I am very concerned by what I have read and would advise you as follows -

Your first port of call is the Legal Ombudsman at Legal Ombudsman to complain about the solicitor you mention. I, too, am surprised that a solicitor let your husband sign the lease, given the circumstances.

You will then need to speak to another solicitor, not the one who allowed your husband to sign the lease on a building that was already in a state of dilapidation to start with. My gut feeling is that the landlord is trying to pull a fast one and unjustifiably enrich themselves. A good solicitor will be able to tell you if the landlord has a strong case or whether there are grounds for having the landlord's claim truncated or struck-out. I would also be minded to ask the solicitor you see about the bank dragging their heels with providing you with paperwork.

At the present time, this is the best advice I can give you.

Bluebottle