Business loans - personal guarantee

D

Darco31

Registered User
Messages
4
Hi,

Firstly apologies if this is in the wrong place.

My brother and I took out a loan that was personally guaranteed by both of us on a business. Now I have left the business over 3 years ago and it continues to operate. The bank now want their money and rightly so. We have being paying only 100 a mth as this is basically all we can afford. He I have found out has stopped paying so we are now getting solicitor letters. The amount is 11000 euro. My question is this. Is my house\property which is jointly owned with my wife who has nothing to do with this under threat? What action will be taken ? Any advise would be very helpful. I would love to able to pay it but the money is just not there. I am quite worried as I have little or no experience with this kind of thing.

Thanks,

Steve.
 
"Is my house\property which is jointly owned with my wife who has nothing to do with this under threat? What action will be taken ?"

The debt is due. By both you and your brother. But he has stopped paying.

It is called joint and several liability - both, and either, of you are responsible and the bank can pursue both of you and both of your assets. So, yes, if it comes to it, the bank can get a judgement against you and attach a judgement mortgage to any property you own, be that in your sole name or the joint names of you and your wife.

You should make an appointment with MABS and they will go through the situation with you and advise what is likely to happen.

mf
 
Darco31.

If you are paying 100 per mth it is highly unlikely that the worst scenario ie your home under threat, will happen.

On k11 , it is unlikely that Bank will force matters that far.
Can I suggest contact Bank and honestly appraise them of your situation and ask for their advice in sorting. Make sure you keep copies and try to only contact in writing. Phone calls are too open to missinterpretation.
Some Banks are more pragmatic than others and you could meet a (twit)
The Bankers function is to squeeze as much as they can from you of the k11.
If they come up with a workable and it MUST be a final and sustainable solution for YOU, go with that , but DO not agree to it at that meeting.

By all means call to MABS , you should get good advice there.

Please , do not feel too bullied or stressed over this.
Remember it is also in Banks interest to get closure, without legal hassles.
 
Darco

What does your brother say about all this?

While you are fully legally liable for the debt and while the bank has the right and will pursue you, does your brother not have a bigger moral obligation to pay the debt?

Was the business a partnership? Could you be liable for other debts of the business? Is your name removed completely from the partnership?

You and your brother need to deal with this together. If he avoids it, you will end up paying it eventually.

Brendan
 
Thank you for your replies. To answer some questions. My brother is difficult to deal with he buries his head and won't listen to reason. It was a partnership but I have left and there is a new director in place since. I have been in contact with the bank and the company they use to collect the money. It was my contacting them in the first place that got the 100 a mth in place. It was all fine until he missed the last payment and the solicitor s letters started. I have no issue writing to them or the solicitors and j will of course go to MABS it was just the tough of the sheriff or something knocking on the door that worries me. I may be over reacting but I suppose that's me. Any way thank you for your advise it really is appreciated.
 
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