Steve Thatcher
Registered User
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This is the Official Receivers own technical manual.
Not true. You are perfectly entitled to obtain release from a guarantee after giving the required period of notice.
Yes its true that the bank are not obliged to release the guarantee unless they are satisfied to do so or satisfactory alternative security is provided.
Fact that a contingent debt such as a guarantee is written off in the bankruptcy
http://www.insolvencydirect.bis.gov....art7/part7.htm
This remains ambiguous despite your assertion Steve., I have taken the following from the guide to bankrupcy published on the UK's ISI website, in italics.
a. Debts
Discharge releases you from most of the debts you owed at the date of the bankruptcy order. Exceptions include any claims which cannot be made in the bankruptcy itself.
my personal view is if the guarantee is not called in at the date of the bankrupcy then the debt is not owing at that date and no claim can be made.
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In the link to the Official Receivers guide you provided it comments as follows on guarantees...again in italics and IMO says the same thing
A personal guarantee may be a contingent liability but the rule against double proof means that the creditor cannot prove his/her claim until the amount guaranteed is paid in full by which time the amount of the debt will be known.
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I cannot comment on the Irish system as I'm not qualified to as I'm not a PIP however based on my research this morning I think that this is not at all clear and would probably require the legal people to trash it out if ever this got to be an actual occurance.
The rule against double proof, is claiming under the guarantee and then the bankruptcy itself.
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