house as guarantee

[james j]

my situation is as follows
we took a loan out in 2007 for 50k which was guaranteed by my parents with security of their property .we also had overdraft at time roughly 20000 overdrawn .the secured loan was down to about 22000 and overdraft 11000 when we went bust . between interest and penalties the total amount due now is 42000 we have paid back about 3000 in last 16 months .The bank has now started legal proceedings but they are trying to tell me that the guarantee covers total amount but solister wont put this in writing .he has wrote back to me when i requested guaranteed amount (which i told him should be now down to roughly 25000)as opposed to total amount .His reply to this request was that no one in bank and we have asked them has ever said that amount was restricted to 25000 you are liable for total amount 42000.
Is it best to go back to bank for this information my parents are looking to deal on their end only but solister says he has served papers .Any advice on what to do next would be really great i have legal appointment next week

 

[WizardDr]

You clearly do not appear to have a document as to what was guaranteed.

1. This sounds like the family home of your parents.
2. Did the Bank insist that they got independent legal advice? If they did not there would be an issue with the Guarantee.
3. The Bank must supply a copy of the Guarantee

Formal letter - registered post - demanding copy of alleged guarantee.
4.

 

[44brendan]

they are trying to tell me that the guarantee covers total amount but solister wont put this in writing

Something wrong here. Either the guarantee does cover all of the liability or it does'nt. If it does and they have commenced legal proceeding against you they should also have formally advised the guarantors and called in the guarantee. If they have'nt done this it indicates that the guarantors may not be fully liable. As per Wizard's post ask for a copy of the guarantee. Until you have access to this document you cannot be sure of the legal liability of the guarantors.