Personal Guarantee Judgement

Hello,

I have a question about a financial institution obtaining a judgement against someone who gave personal guarantee for limited company's business loan: If the person has signed personal guarantee for his limited company's business loan, can the financial institution obtain the judgement against the guarantor by default or do they have to go the same route as obtaining any other judgement by serving the debtor/guarantor in person or by registered post?

Thank you!

They will have to follow due process to get a judgment against the guarantor, there is no shortcut to this, first step is they call in the debt and demand payment from the guarantor, after that it is the normal debt recovery process, there is no difference at all.

ok, thanks for such a speedy response! Just wanted to make sure that a signed personal guarantee does not give any additional powers to the bank to obtain judgement. Thanks again.

No it doesn't, they have to prove the debt like in any other case, good luck.

maxdub said:

If the person has signed personal guarantee for his limited company's business loan, can the financial institution obtain the judgement against the guarantor

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Might be an idea if this is going to happen to talk to the bank now and see if you can come to a mutually acceptable arrangement.

Just wondering if you get a Judgement order (on cars bought by company) and you went personal guaranteeing is that order on everything you own ie house, land etc? Thanks.

They get the judgement against the individual first, and then securitise that against properties owned by the guarantor. My experience has been that assigning the judgement to the properties is a pretty simple process, that seems to just happen (unless I missed a letter or two, but I don't think so).