Current market conditions mean that many business owners and directors are having to face up to the consequences of personal guarantees they signed when they first started their business, took out a loan or signed a lease agreement.
I've heard of numerous small business owners who have had their business loan called in by the bank. If they haven't got the money in the business to pay it back they will more than likely be personally liable as a result of having signed a personal guarantee. It's a terrible position to be in and many business owners despair, believing they have no option but to pay up.
We've been able to help a number of clients recently and proved that there can be other options. One client had given the bank a personal guarantee to cover the borrowings of his company. When the company was wound up, the bank threatened to repossess the family home. Following our strategic advice he was able to negotiate a 25% discount in full and final settlement, which allowed our client to remortgage and prevent the house being sold.
Recognising a need in the market we’ve launched a Personal Guarantee Review service. For a fixed fee of £95 + VAT one of our experienced business solicitors reviews the circumstances of the guarantee and provides practical advice on the best options available for minimising the amount to be paid back.
Anyone concerned about a personal guarantee given to a bank, landlord or other creditor can take advantage of the review by calling me on 01285 847 001.
Nigel Musgrove
Solicitor
Read more: Personal guarantee review
This blog is not intended to constitute legal advice, nor is it intended to be a complete and authoritative statement of the law, and what we say might be out of date by the time you read it. You should always seek legal advice to confirm whether or how any information in this article applies to your particular situation. We offer a free telephone consultation to discuss your particular circumstances.