Most directors these days will be asked to sign a Personal Guarantee for any and all types of lending either personal or to a company. Often, the signatory or Guarantor’s partner (husband or wife) are not aware that these Guarantees have been given and, more importantly, that such Guarantees expose all of the joint assets to risk of loss if the loan repayments are not maintained.
Where payments are not maintained and the lender calls on the Guarantor to make the payments, if this is not done, then Court proceedings can be issued to recover the total amount outstanding under the terms of the loan, plus costs. If the debt is not, then settled, the ultimate sanction would be the lender applying for the Guarantor’s bankruptcy which could mean the loss of everything. The matrimonial home could be sold and other assets seized by the Official Receiver in Bankruptcy.
At Cromwell Seymour, we can help. We have a proven track record in being successful in negotiating a satisfactory conclusion that helps to protect not only the matrimonial home but also other assets of the family where one party has given a Personal Guarantee, with or without the knowledge of the partner.
Whether you are the innocent party or the Guarantor, Please call us as we can help.