Personal guarantee

L

locteau

Registered User
Messages
16
Hello everybody,

I am looking for some advises. I made a loan with a business partner of 25k to purchase equipment and we signed a personal garrantee of 10k at the time. I left the business for another job 6 months ago and the bank is saying that if the company do not make repayments I am still liable for it. The loan is in good standing order at the moment but should I be worry for the future if the company managed by other people now goes down ?

I have no involvement anymore and do not owned any of the asset, do I still have to pay the loan and be responsible for it if something happen ?

Thank you so much

Sebastien
 
Yes.

You are as liable as your former business partner. If he defaults they can come after you for the €10k.
 
so we owe 16k now is that 8k each ? regardless that I don't have anything from that equipment ?

It sounds wrong somewhere. if the new owner mess up and they can wash their hands and I will have to pay :)
 
Did the agreement that you signed say "if you leave the business, you're grand"? No it didn't. It's perfectly reasonable that you remain on the hook.
 
I understand, I was not a guarantee for "myself" but for the company as such. the same way I would have been a guarantee for my daughter's loan etc....
 
I don't think you need to spend too much time looking for the agreement. They are pretty standard.

It is likely that you gave a full joint and several guarantee.

Brendan
 
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