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Hi Thank you for your question and welcome. My name is ***** ***** I will assist you. Does the guarantee contain a definition of the secured liabilities? Kind regards AJ
Hi Thank you - I will review this now and revert to you as soon as possible.
Kind regards AJ
Hi, Thank you. I have reviewed this and understand the situation as follows - you guaranteed a fixed sum up to £44k, if the bank cannot recover money it is owed from your limited company. The bank cannot currently prove it is owed any money by the company as the original underlying agreement has been lost. Does the company have any statements that show its indebtedness? Is the bank claiming the full £44k?
Hi, Is the amount owed more or less than £44k? Technically you should be able to ask the directors for a contribution if the amount is less than the full amount guaranteed by all the company directors.
Hi, Thank you. Technically your argument is that as they cannot prove the indebtedness of the company, your guarantee is guaranteeing liabilities that do not exist. Are you negotiating with the other directors collectively or by yourself?
Hi, Thank you. Have you tried to convince the bank to take a cut on what you have to repay based on what you can afford? Have you disclosed your financial means to the bank to try and demonstrate what you can afford to repay - if they are going to accept a deal it will need to be based on evidence and affordability. You have a greater chance of negotiating a reduction in the loan amount on the basis that the bank is missing paperwork - this would make going to court to prove the guarantee is enforceable conceptually more difficult.
Hi, Thank you. Baring in mind you are on the hook for up to £44k each - how much can they actually prove? Is the last statement more than £44k? I understand if you do not want to risk disclosing your assets and having a charge put on your house or other property, but if you want to settle with the bank you need to convince them a) that they wont be able to enforce the whole guarantee any way, as they wont be able to prove the company (which you have guaranteed) is actually in debt and b) that what you are offering to repay is all you can afford. If you are not prepared to make full disclosure then you would need to focus on challenging the paper work - have you asked them in writing to prove how the debt (that the guarantee relates to) arose?