Personal Guarantees and Bankruptcy

S

SRB

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Hi People. I have a business debt from an Irish company that no longer trades. I signed personal guarantees on business loans. My business partner also signed a personal guarantee. This debt is too large to ever repay and the bank have secured Judgement Mortgages on properties owned by me and my business partner. I am considering bankruptcy in the UK. If I proceed with this, will my ex business partner become liable for 100% of the debt owed or 50% of the debt owed? Any advice is appreciated.
 
Given that well over 90% of such guarantees are "joint & several", it is likely that your partner will be liable for any debt that you do not pay. A reading of the guarantee should clarify if it is "joint & several" or "several".

Before considering bankruptcy you should really try and do a deal with the bank. you might be surprised by what they might accept, particularly if there is no equity in the judgment mortgages.

Jim Stafford
 
Thanks for that Jim. The situation is such that I own a house which in negative equity. I have no savings and no assets. My debt is twice my annual income. The bank are refusing to settle on the grounds that my ex business partner has no mortgage on his home and they have secured a JM on his home too. He has no income and no other assets. He lives on social welfare payments and is in his 60s. He cannot release equity in his home.Additionally the value of the loan is 70% of the value of his home so selling is not an option. The bank have refused all requests to negotiate. We signed J&S guarantees. They bank are secured in assets owned by him but I am the only party that can make a settlement to clear this debt. This process has been in place for 4 years now. Again thanks for advice
 
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