I own 50% of a ltd company and a business partner owns the other 50%. We have traded well over the past few years but due to the downturn I can foresee us going into liquidation in the coming months.
Our only debt is a €50K stock loan and the balance of two vehicle leases. However, all of this debt is personally guaranteed by us both.
My worry is that if we do go into liquidation and my colleague claims he can't pay, I will be left to repay the debt alone.
Does anyone know if it's possible to setup a legal agreement between us both stating that if the monies are due then each party must cough up half?
I realise that any such agreement won't matter to the bank - they just want their money whichever way it comes. However, it might give me some security that my colleague will at least be forced to try and repay the debt, rather than just walk away.
Any advice gratefully received.
Our only debt is a €50K stock loan and the balance of two vehicle leases. However, all of this debt is personally guaranteed by us both.
My worry is that if we do go into liquidation and my colleague claims he can't pay, I will be left to repay the debt alone.
Does anyone know if it's possible to setup a legal agreement between us both stating that if the monies are due then each party must cough up half?
I realise that any such agreement won't matter to the bank - they just want their money whichever way it comes. However, it might give me some security that my colleague will at least be forced to try and repay the debt, rather than just walk away.
Any advice gratefully received.