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JGM, Solicitor
Category: Scots Law
Satisfied Customers: 11259
Experience:  30 years as a practising solicitor.
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Hello 7 years ago i signed a personal guarantee with NHBC

Customer Question


7 years ago i signed a personal guarantee with NHBC whilst constructing a small housing development. Once the project was complete the financial crisis struck and we decided that we did not wish to continue with the company and it was dissolved. There were no outstanding debts owed.
Since then i have moved home twice, at the time of closing the company the business address which was rented was given up. I had not thought about NHBC and did not inform them of my new address. I have recently received a court writ for £12,000 for works that NHBC carried out for perceived defects (They claim that they were serious health and safety risks and had to act, they never actually rectified the problems but paid off the home owners who subsequently kept the money and carried out no remedial works) They have written to my old address on various occasions to inform me of the problems and asked for them to be rectified but i have never received these so could not act. I have signed a personal guarantee and NHBC are now pursuing me under this. Is there any way to defend the personal guarantee?
Submitted: 4 years ago.
Category: Scots Law
Expert:  JGM replied 4 years ago.
Thank you for your question.

Whether you can defend the personal guarantee depends on whether the problems actually existed. Have they shown you any evidence justifying a payment to the homeowner?
Customer: replied 4 years ago.

No, however i believe that the issues in question may be valid. I would go on the assumption that they are.

Expert:  JGM replied 4 years ago.
In that case then the personal guarantee will oblige you to pay any monies that they can't recover from the company. Without seeing the papers of course I can't give you a definitive answer but I think you have a problem here and should see a solicitor.

Happy to discuss further.