Directors Guarantee - but no assets

[andrew1]

My friend had a business (Ltd co, sole proprietor/director) which had an overdraft facility of £30,000 supported by a Directors Guarantee.

The business failed, his circumstances changed completely, he sold his house and is now receiving pension credits and living in rented accomodation after selling his negative equity house. He is 69yrs old, single (widowed) and unlikely to be re-employed

RBS have requested the repayment of this Guarantee but he has no assets, no job and just his small pension.

Can anyone give me an idea of what RBS might do in these circumstances with this guarantee? He paid his way via CCCS for some time including this debt, but can no longer afford to do this, but he is concerned as to what might happen.

Is it likely the bank will just write this off if they were approached stating the position he is in? Would they try for bankruptcy (can't personally see the point though) ? or what might they do if he just stopped paying as his outgoings now are more than his income after paying CCCS.

The debt has been passed to Telford for collection and all the time CCCS keep paying they are quiet, but he just can't continue.

Any thoughts anyone?


Thanks andrew1

[charitynjw]

Re: Directors Guarantee - but no assets

Cabot fan club?

http://www.fanpop.com/spots/meg-cabot

[andrew1]

Re: Directors Guarantee - but no assets

Now Meg is one dishy lady for sure and if I was ever in need of being in someone's fan club who looked like that then she'd sure be high on the list, but.....you matey have obviously not witnessed the savagery I and a number of 'associates' over the road where LB would prefer I didn't add a link to which was enflicted upon the mighty Cabot of West Malling. We helped them lose £18 million in our first year and £23 or £24 million (something quite sweet anyway) the following year by getting people to ask them to abide by the laws they were using on their 'customers'. Forgive me reminding people, but no doubt you had your tongue in your cheek with that link?...and I don't mind repeating this just to rub old Ken Maynards nose in it.. That's the REAL Cabot Fan Club

Now back to the serious matters...any thoughts?

[charitynjw]

Re: Directors Guarantee - but no assets

Sorry andrew, couldn't resist lol.
Back to serious, I was in a similar position a long time ago (no assets, rented accommodation & owed money) - was taken to court & had a judgment against me.
The other party asked the judge how they could recover the money when I plainly had no assets.
The judge told them that was their problem! Have heard nothing since!
I would write to them (RBS) claiming hardship, enclose an I & E, & see what transpires.
(Unless anyone has better advice)

[andrew1]

Re: Directors Guarantee - but no assets

Sorry andrew, couldn't resist lol.
Back to serious, I was in a similar position a long time ago (no assets, rented accommodation & owed money) - was taken to court & had a judgment against me.
The other party asked the judge how they could recover the money when I plainly had no assets.
The judge told them that was their problem! Have heard nothing since!
I would write to them (RBS) claiming hardship, enclose an I & E, & see what transpires.
(Unless anyone has better advice)

I thought there was one big tongue in your cheek when you wrote that, but you can never tell sometimes when someone is being serious or not and I didn't want to offend LOL That Meg is nice though isn't she? - damned better looking than ole Maynard anyway!

Thanks for sharing the experience of the loan. I was trying to avoid the CCJ though, which I guess is always a possibility if we go that route. CCJ's have their own residues which I'd rather not get my friend into. I know he's getting on, but I think ccj's are for the younger generation now. I think you're right though, an approach to RBS would be best although they have ignored one letter pleading poverty a short while ago asking their opinion on what to do.

I'll have a word with them as I have permission to speak on his behalf and see what they say.

Many thanks, now back to Megs books....

[charitynjw]

Re: Directors Guarantee - but no assets

Don't know whether you've read this:-

http://www.legalbeagles.info/forums/...ad.php?t=27305

[andrew1]

Re: Directors Guarantee - but no assets

Actually, that is most useful thank you. I will endeavour to put this proposition to the bank:

214. of the Lending Code:
Where the subscriber considers the customer’s personal and financial circumstances to be exceptional and unlikely to improve, the subscriber may, among other options, consider writing off or not pursuing part or all of the customer’s debt(s). Where write-off is requested by a customer or adviser but is not considered appropriate by the subscriber, the subscriber must give their reasons in writing. If the subscriber agrees to a write-off, then the debt may be registered as a default with the credit reference agencies.

This is an unsecured debt and there is no hope of this ever being met completely without severe hardship or begging, stealing or borrowing to do so. We can but try and relieve him of the worry.

Thank you.

[charitynjw]

Re: Directors Guarantee - but no assets

http://www.legalbeagles.info/forums/...ad.php?t=28205

[leclerc]

Re: Directors Guarantee - but no assets

The lending code would apply but am not sure it can do so retrospectively. Thankfully, he doesn't own a house, doesn't have savings, and simply rents(which is all good with regards to debt). Does he drive an expensive car?(am trying to downgrade as much of his wealth as possible). Am not sure there is much that they can do apart from taking him to court for the debt which he will admit and then paying a nominal amount per month where the court would take into account his income and expenditure.
To be honest, I think everytime a DCA calls he should actively tell them to tell their clients to take him to court since he has no assets to repay the amount they are requesting.

[Guest]

Re: Directors Guarantee - but no assets

You can't take the knickers off a bare arse and even RBS know this.

There is nothing to be gained by starting any litigation, in particular since they will not recover any of their costs, let alone any of the debt.

However, they need to know the situation and whether or not it is going to change, before they will consider writing this off.

[charitynjw]

Re: Directors Guarantee - but no assets

You can't take the knickers off a bare arse and even RBS know this.

There is nothing to be gained by starting any litigation, in particular since they will not recover any of their costs, let alone any of the debt.

However, they need to know the situation and whether or not it is going to change, before they will consider writing this off.

Ah, the old 'am bare-assed' defense then, Cetelco lol

[andrew1]

Re: Directors Guarantee - but no assets

The lending code would apply but am not sure it can do so retrospectively. Thankfully, he doesn't own a house, doesn't have savings, and simply rents(which is all good with regards to debt). Does he drive an expensive car?(am trying to downgrade as much of his wealth as possible). Am not sure there is much that they can do apart from taking him to court for the debt which he will admit and then paying a nominal amount per month where the court would take into account his income and expenditure.
To be honest, I think everytime a DCA calls he should actively tell them to tell their clients to take him to court since he has no assets to repay the amount they are requesting.

No expensive anythings I'm afraid - the poor guy lost his wife last year at 61 yrs of age and he fell apart, his family, whilst supportive have their own problems and pressures and he skips from one place to the next (even my place) so 'wealth' is not something you'd associate with him.

Thanks for all your input, we'll approach the bank and see what they say. Nothing to lose have we?