personnel guarantee for company debt

[qwedr]

in jan 2002. i was director of a business. we asked the bank for £20,000 overdraft. myself and the other directors signed a personal guarantee form for this facilty.

i have recieved various correspondance from rockwell debt collection agency about this debt.

the final oneasking for £21,773.96 to cover the guarantee plus interest to be paid by 19th december 2008.

i actually stopped been a director of the business in november 2002(i think). i didnt hear anything form rockwell until sometime in 2007.



can you help me with this matter
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the company has since gone into liquidation.

also the guarantee wasnt signed in a solicitors office. though there is a clause on it saying we the bank advised to seek independant advice before signing it and we decided not to. i dont remember been advised to do that. after the guarnatee was signed the bank manager did try on several occasions to to get us to sign another guarantee in a solicitors office.

when i finally left the business he pretty much admitted the guarantee wasnt worth very much but that was in a conversation with me. so obviously i have no proof of this.

[Sapphire]

Re: personnel guarantee for company debt

Hiya,

Can I ask how many Directors there were and are you still in touch with them. I'm wondering if they have had the same letter.

From what I can understand the trouble is that although there may be a couple or a few Directors that signed, if one or more fail to pay then Rockwell will chase the remainder for the money.

To be honest I'm not sure if you will get anywhere with the 'not using a solicitor' argument etc my other half signed a personal guarantee for a business loan and we are paying that back now.

[qwedr]

Re: personnel guarantee for company debt

there were five directors in total. i know they are only chasing 2 of us. not sure why though
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one other quick question, is there a template letter i can use for claiming back bank charges

[WendyB]

Re: personnel guarantee for company debt

problem is with limited companies, the minute you sign a personal guarantee then the limited liability goes out the window, and whoever has signed would be liable for the monies. Rockwell are probably asking everyone for the same amount, to cover their backs, I would think. If they are only chasing two of you you need to find out why. When you stopped being a director did you inform the bank of this and remove the guarantee?

[qwedr]

Re: personnel guarantee for company debt

no i didnt. the company went into liquidation a few years ago.
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i obviously dont have that sort of money to hand. have you any idea what they are likely to do

[WendyB]

Re: personnel guarantee for company debt

I'm not too up on company law and personal guarantees, its probably to do with joint and several liability I would think. You'd need to know the terms you signed for. You could try asking Rockwell for a copy of the original agreement. Have you actually acknowledged the debt? I'm just thinking if it goes back to 2002 and you have never acknowledged it so far, it could be statute barred, in which case, if you haven't acknowledged it, then don't. You need someone with more knowledge than me, someone will probably be along later.

[qwedr]

Re: personnel guarantee for company debt

thay have sent me a copy of the guarantee. i spoke to them on 7/1/2008 and said i had no idea what they were talking about. they then sent me aletter and copy of the guarantee on the 19th november. the letter asked for payment by 19th decmeber 2008 and showed a figure owing of £21773.96 as of 23 feb 2007

[Sapphire]

Re: personnel guarantee for company debt

What bank was it hun ?

In our case it was Nat West, after a LOT of too-ing and fro-ing we ended up with an agreement to pay monthly and a charge on the house. Not ideal but better than having to sell and move etc.

To be honest though if I were you one of the first questions I'd be asking is why they are not chasing the other Directors. Let see what they come back with.

[qwedr]

Re: personnel guarantee for company debt

lloyds.

will send a letter asking who they are chasing