UK Law

Get UK Law Questions Answered by Verified Experts

Ask an Expert,
Get an Answer ASAP!

UK Law

We started a business - limited company - back in 1991 with

Customer Question
Hi, we started a business...
Hi, we started a business - limited company - back in 1991 with a 25 year lease, however following a much increased rent review back in 2008 we decided to close and took out a 10 year loan with the bank - Lloyds Tsb- to pay off our facility, the bank agreed to the loan fully aware the business was no longer trading - when Lloyds split from Tsb in Sept 2013 our account was passed on to Securities Dept as they became aware the company was no longer trading , but still active on Companies House and we had not defaulted on any payments, we also had an overdraft acoustic which we successfully renewed every 12 months with Lloyds Tsb. In January 2014 the bank froze our account and we could not make any further payments, they sorted charging us unauthorised interest. We tried to settle and made 2 offers but they first wanted the Directors to declare all their assets by filling in ALIE forms which they refused as we were concerned the bank could put a charge on - thebank holds personal Guarnatees limited to £44k for each director - we have failed to negotiate and in May 2015 decided to strike the company off to try and get a response from Tsb -,they are now in the process of trying to enforce the guarantees, however do not have a copy of the original loan agreement made in 2008 which was signed in the bank - unfortunately we did not receive a copy so cannot check the original T&C's - we are not disputing the fact we have the loan, but the legality of enforcing the guarantee have the way the bank had treated us, your opinion would be greatly appreciated. Thank you.
Submitted: 1 year ago.Category: UK Law
Show More
Show Less
Ask Your Own UK Law Question
Answered in 12 hours by:
2/29/2016
Solicitor: Alex J., Litigator replied 1 year ago
Alex J.
Alex J., Litigator
Category: UK Law
Satisfied Customers: 3,794
Experience: LLB, LPC, DELF
Verified

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

Ask Your Own UK Law Question
Customer reply replied 1 year ago
Hi, thank you for your response - please find attached a copy of the guarantee.
Solicitor: Alex J., Litigator replied 1 year ago

Hi Thank you - I will review this now and revert to you as soon as possible.

Kind regards AJ

Ask Your Own UK Law Question
Customer reply replied 1 year ago
Many thanks.
Solicitor: Alex J., Litigator replied 1 year ago

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?

Ask Your Own UK Law Question
Customer reply replied 1 year ago
Posted by JustAnswer at customer's request) Hello. I would like to request the following Expert Service(s) from you: Live Phone Call. Let me know if you need more information, or send me the service offer(s) so we can proceed.
Customer reply replied 1 year ago
The bank statements are on the last file I sent and they are looking to enforce the full guarantee amount - should you wish to contact me to discuss anything my number is ***** - thank you.
Solicitor: Alex J., Litigator replied 1 year ago

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.

Ask Your Own UK Law Question
Customer reply replied 1 year ago
Posted by JustAnswer at customer's request) Hello. I would like to request the following Expert Service(s) from you: Live Phone Call. Let me know if you need more information, or send me the service offer(s) so we can proceed.
Solicitor: Alex J., Litigator replied 1 year ago

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?

Ask Your Own UK Law Question
Customer reply replied 1 year ago
Thank you for your reply, we are negotiating with the second director who is a family member.
Solicitor: Alex J., Litigator replied 1 year ago

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.

Ask Your Own UK Law Question
Customer reply replied 1 year ago
We have already made 2 offers back in 2013 when TSB and LLoyds split which were rejected and the account was sent to the Recovery department and frozen - we were unable to continue making the monthly repayments of the loan as they were bouncing back - the bank asked us to fill in Assett and Liability forms which we refused on the advice of our accountant as we were concerned the bank could place a charge over some of the assets and we were informed this is not a legal requirement - we had made regular repayments since the Loan was set up in 2008 with any default - the only reason the bank reacted with Formal Demands is because we struck the company off in June 2015 as we could not reach a settlement and the unauthorized charges kept on accruing at around £1000 per month - so in a way we have instigated the bank to start proceedings, however we do not feel they now have all the correct paperwork.
Solicitor: Alex J., Litigator replied 1 year ago

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?

Ask Your Own UK Law Question
Ask Alex J. Your Own Question
Alex J.
Alex J.
Alex J., Litigator
Category: UK Law
Satisfied Customers: 3,794
3,794 Satisfied Customers
Experience: LLB, LPC, DELF

Alex J. is online now

A new question is answered every 9 seconds

How JustAnswer works:

  • Ask an ExpertExperts are full of valuable knowledge and are ready to help with any question. Credentials confirmed by a Fortune 500 verification firm.
  • Get a Professional AnswerVia email, text message, or notification as you wait on our site. Ask follow up questions if you need to.
  • 100% Satisfaction GuaranteeRate the answer you receive.

JustAnswer in the News:

Ask-a-doc Web sites: If you've got a quick question, you can try to get an answer from sites that say they have various specialists on hand to give quick answers... Justanswer.com.
JustAnswer.com...has seen a spike since October in legal questions from readers about layoffs, unemployment and severance.
Web sites like justanswer.com/legal
...leave nothing to chance.
Traffic on JustAnswer rose 14 percent...and had nearly 400,000 page views in 30 days...inquiries related to stress, high blood pressure, drinking and heart pain jumped 33 percent.
Tory Johnson, GMA Workplace Contributor, discusses work-from-home jobs, such as JustAnswer in which verified Experts answer people’s questions.
I will tell you that...the things you have to go through to be an Expert are quite rigorous.

What Customers are Saying:

A quick response, a succinct and helpful answer in simple English. I believe I can now confront the counter party with confidence -- worth the 30 bucks!

RickLeeds, UK

I did not know a French Law service existed and I was very impressed with the speed of reply --- very professional. Many thanks!

Ms. BakerAlfafar, Spain

Thank you so much for your help. Your answers were really useful and came back so quickly. Great!

MaggieUSA

Wonderful service, prompt, efficient, and accurate. Couldn't have asked for more. I cannot thank you enough for your help.

Mary C.Freshfield, Liverpool, UK

This expert is wonderful. They truly know what they are talking about, and they actually care about you. They really helped put my nerves at ease. Thank you so much!!!!

AlexLos Angeles, CA

Thank you for all your help. It is nice to know that this service is here for people like myself, who need answers fast and are not sure who to consult.

GPHesperia, CA

I couldn't be more satisfied! This is the site I will always come to when I need a second opinion.

JustinKernersville, NC

< Previous | Next >

Meet the Experts:

Ben Jones

Ben Jones

UK Lawyer

9,196 satisfied customers

Qualified Solicitor - Please start your question with 'For Ben Jones'

INC

INC

Solicitor-Advocate

3,868 satisfied customers

LL.B, Pg.Dip, LL.M, M.B.A (Pending), Solicitor-Advocate. UK Practising Certificate issued by SRA., DIFC Courts Registered (Dubai)

Jenny Mackenzie

Jenny Mackenzie

2,756 satisfied customers

Over 10 years experience in general legal matters

Matthew J

Matthew J

Solicitor

334 satisfied customers

4 y PQE (Partner) - Commercial / Residential Property & Property and Civil litigation experience

James Mather

James Mather

7,349 satisfied customers

Senior Partner at Berkson Wallace

Clare

Clare

Solicitor

9,490 satisfied customers

family solictor with 25 years experience

Thomas

Thomas

Lawyer

2,176 satisfied customers

BA (Hons), PgDip, Practising Solicitor

< Previous | Next >

Related UK Law Questions
When I file for small claims court in London and date set,
When I file for small claims court in London and date set, what if i can't be there as I am working overseas? Can I ask someone to act on my behalf?The reason for not filing at the moment as I have a … read more
Jamie-Law
Jamie-Law
5,352 satisfied customers
My friends downsyndrome sister recives disability living
Hi my friends downsyndrome sister recives disability living allowance which is now being transitioned to PIP but she has nevet claimed income support. Is she entitled to income support as she herself … read more
Jo C.
Jo C.
Barrister
Master\u0027s Degree
37,612 satisfied customers
I've been asked to go to an interveiw under caution for
Hi I've been asked to go to an interveiw under caution for suspected benefit fraud. What it was is I applied for housing benefit that I am entitled to as single mum and working tax. But what I didn't … read more
Jo C.
Jo C.
Barrister
Master\u0027s Degree
37,612 satisfied customers
My mother died intestate last July, she lived with my sister
My mother died intestate last July, she lived with my sister who I'd fallen out with some time ago, my brother contacted me on Boxing day and told me my mother had informed my sister that I wasn't to … read more
Buachaill
Buachaill
Barrister
Master\u0027s Degree
2,846 satisfied customers
My friends downsyndrome sister recives disability living
Second opinion] Hi my friends downsyndrome sister recives disability living allowance which is now being transitioned to PIP but she has nevet claimed income support. Is she entitled to income support… read more
Clare
Clare
Solicitor
Bachelor's Degree
9,490 satisfied customers
Family mater get in ex girlfriend out of my property. What I
Family mater get in ex girlfriend out of my property … read more
Clare
Clare
Solicitor
Bachelor's Degree
9,490 satisfied customers
My ex wife is wanting to take our 4 year old daughter on
Hi, my ex wife is wanting to take our 4 year old daughter on holiday, that in it's self I have no issues with. I have asked my ex wife for a child travel consent form outlining details of the holiday … read more
ivorylounge
ivorylounge
38 satisfied customers
I ordered 5 items online, and paid for them. there then
I ordered 5 items online, and paid for them. there then followed a series of emails from the seller, sayting that the item was being 'tested', and that one of the colours I asked for was not available… read more
Ben Jones
Ben Jones
UK Lawyer
Legal Practice Course
9,196 satisfied customers
Please can you advice me what will likely happen with the
Hi please can you advice me what will likely happen with the following.In March me and my partner of 6 years had a domestic argument. She drank every day and often came across in my face and argumenta… read more
Jo C.
Jo C.
Barrister
Master\u0027s Degree
37,612 satisfied customers
We have a survey to establish employee satisfaction and our
Hi thereWe have a survey to establish employee satisfaction and our department came last.My manager has just told me that I am being made to improve the score in the next two to three months and if I … read more
Ben Jones
Ben Jones
UK Lawyer
Legal Practice Course
9,196 satisfied customers
I have not been paid for some consultancy work i did for an
I have not been paid for some consultancy work i did for an agency set up to manage a United Nations project. They claim the client will not pay them so they are not in a position to pay me. The agenc… read more
Michael Holly
Michael Holly
Bachelor\u0027s Degree
6,666 satisfied customers
I hope so. UK. Letters written, complaint filed with
Letters written, complaint filed with solicitor concerned.... Ideal outcome would be to compromise/mediation... … read more
ivorylounge
ivorylounge
38 satisfied customers
I, and one of my executors have changed our address since I
i, and one of my executors have changed our address since I made my Will. Do I need to modify myh Will or will a codicil do? … read more
Clare
Clare
Solicitor
Bachelor's Degree
9,490 satisfied customers
If I have a complaint about my solicitors bill and after
If I have a complaint about my solicitors bill and after exhausting their complaints procedure and my complaint is then bing investigated by the legal ombudsman, does the interest on the bill freeze u… read more
Jamie-Law
Jamie-Law
5,352 satisfied customers
I want to know if my employer can tell me not to come in
i want to know if my employer can tell me not to come in anymore … read more
Ben Jones
Ben Jones
UK Lawyer
Legal Practice Course
9,196 satisfied customers
I recently moved my mother to live with me in May last year
I recently moved my mother to live with me in May last year as she has mixed dementia and has increasingly needed more support. I sold my home to purchase a larger house with an annexe to house my mot… read more
F E Smith
F E Smith
Bachelor\u0027s Degree
2,205 satisfied customers
I am trying to find out if copywrite exists on car adverts
Hello I am trying to find out if copywrite exists on car adverts from th 20's to the 50's. The car company was wound up. not absorbed in the mid 1960's … read more
JGM
JGM
Solicitor
Bachelor\u0027s Degree
6,702 satisfied customers
I have an executor for my late mother's will, however, he
I have an executor for my late mother's will, however, he refuses to do his job. What can I do? … read more
Clare
Clare
Solicitor
Bachelor's Degree
9,490 satisfied customers

DISCLAIMER: Answers from Experts on JustAnswer are not substitutes for the advice of an attorney. JustAnswer is a public forum and questions and responses are not private or confidential or protected by the attorney-client privilege. The Expert above is not your attorney, and the response above is not legal advice. You should not read this response to propose specific action or address specific circumstances, but only to give you a sense of general principles of law that might affect the situation you describe. Application of these general principles to particular circumstances must be done by a lawyer who has spoken with you in confidence, learned all relevant information, and explored various options. Before acting on these general principles, you should hire a lawyer licensed to practice law in the jurisdiction to which your question pertains.

The responses above are from individual Experts, not JustAnswer. The site and services are provided “as is”. To view the verified credential of an Expert, click on the “Verified” symbol in the Expert’s profile. This site is not for emergency questions which should be directed immediately by telephone or in-person to qualified professionals. Please carefully read the Terms of Service (last updated February 8, 2012).

DISCLAIMER: Answers from Experts on JustAnswer are not substitutes for the advice of an attorney. JustAnswer is a public forum and questions and responses are not private or confidential or protected by the attorney-client privilege. The Expert above is not your attorney, and the response above is not legal advice. You should not read this response to propose specific action or address specific circumstances, but only to give you a sense of general principles of law that might affect the situation you describe. Application of these general principles to particular circumstances must be done by a lawyer who has spoken with you in confidence, learned all relevant information, and explored various options. Before acting on these general principles, you should hire a lawyer licensed to practice law in the jurisdiction to which your question pertains.

The responses above are from individual Experts, not JustAnswer. The site and services are provided “as is”. To view the verified credential of an Expert, click on the “Verified” symbol in the Expert’s profile. This site is not for emergency questions which should be directed immediately by telephone or in-person to qualified professionals. Please carefully read the Terms of Service (last updated February 8, 2012).

Show MoreShow Less

Ask Your Question

x