Will the bank pursue a personal guarantee?

D

Darco31

Registered User
Messages
4
Hi,

I used to own a company with my brother but because of I'll health I resigned as company director. The company is still running and doing ok. We signed a pg for a € 15,000 loan 3years back. When the hard times hit it was never repaid. Now the bank are after me for the lot. I am only in receipt of social welfare and the wife only works 2 days,while I have no issue in trying to pay back at least half the loan the most I can offer is €50 a month. I suppose my questions are,

1. Can they take my possessions e.g house,contents etc
2. Should they not be looking at getting the company to start repaying the loan as it was borrowed for that reason and in the companies name.
Any help/advice would be appreciated,

Thanks,
 
Darco31 said:
Hi,

I used to own a company with my brother but because of I'll health I resigned as company director. The company is still running and doing ok. We signed a pg for a € 15,000 loan 3years back. When the hard times hit it was never repaid. Now the bank are after me for the lot. I am only in receipt of social welfare and the wife only works 2 days,while I have no issue in trying to pay back at least half the loan the most I can offer is €50 a month. I suppose my questions are,

1. Can they take my possessions e.g house,contents etc
2. Should they not be looking at getting the company to start repaying the loan as it was borrowed for that reason and in the companies name.
Any help/advice would be appreciated,

Thanks,
Click to expand...

Well they come after the guarantor, when the person/company who took out the loan failed to repay it - seems like it is time to have a conversation with your brother to find out why he has not been making the repayments.....
 
Well I contacted them and they said all avenues had been explored,according to my brother he received step letters and nothing else so that says to me that not all avenues have been explored, there are plenty of assets as well so its all a bit confusing.
 
Am not understanding this. If the company is trading well-how come they are not paying back loans? If they were, 1. they would not be getting letters, and 2. you would not be hearing from the bank.
Ask your brother/company for more information.
 
Darco31 said:
Well I contacted them and they said all avenues had been explored,according to my brother he received step letters and nothing else so that says to me that not all avenues have been explored, there are plenty of assets as well so its all a bit confusing.
Click to expand...

The issue here is your brother. That is at the route cause of the problem. And you need to get it sorted.

To answer you question, they will not take a house contents, most likely they will go after an instalment order from you, or they may agree that you repay them at the rate of 50 Euro a week. But first you need to tackle your brother, I would insist on seeing the correspondance from the bank to him. If he refuses than he is hiding the truth from you.

This is not directed at you but people who write personal guarantees need to take care that this issue is solved before leaving a company.
 
jhegarty said:
Why isn't the company paying it back ?
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You need a hard conversation with your brother.

1. Personal Guarantees are normally joint and 7eral . In essence you are on the hook for the full 15,000.

2. No the Bank will not come after your normal possessions. If you held land or other property they might take a charge over that.

3. Probably ,if things don,t sort, they will take you to court and may obtain an instalment order ; since your circumstances are poor that will be for very little.

If your brother fudges , call to the Bank and try to suss out what the real story is.
Whilst in Bank agree and accept nothing ie give yourself time to think.

Guarantees and family are always tricky.

Good Luck.
 
O.P mentions that the company is doing ok.

The debt is in the company name, the O.P provided a guarantee.

First step is for the Bank to formally call in the debt, in the event the company does not respond and / or make arrangements with the Bank about repayment then the Bank may persue their security formally by calling upon the guarantors in writing to honour their guarantee, interest acrues against the guarantor from the date the Bank call in the guarantee.

You are liable if the company does not meet its obligations to the Bank, your home and contents are safe, they can mark a judgment against your home but frankly that is way down the road with many hurdles between now and then.
 
Darco31 said:
Well I contacted them and they said all avenues had been explored,according to my brother he received step letters and nothing else so that says to me that not all avenues have been explored, there are plenty of assets as well so its all a bit confusing.
Click to expand...

And while you were talking to him, you didn't happen to ask why he is not paying it back by any change??? honestly this is hard to take seriously!
 
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