R
ripdot
Guest
To cut a long story short:
Publican turned developer has Company A, which now has lots of assets, no buyers, and lots of debts (circa 1 million). Ideally they should have been liquidated a long time ago, but instead they took out loans left right and centre to service their considerable debts. The husband and wife, who are both Directors of Company A, have both given personal guarantees to get company loans - husband gave it for initial loan that enabled him to get into developing, and wife went guarantor for a considerable personal loan that her husband got some years later to service this debt. No legal advice was obtained for either case, they waived this in signed declarations.
Revenue are now pushing for payment of a settlement with them, both personally and by the company, so tipping point has arrived.
They've asked me to give them some advice on this before going to the experts and really...I don't know what to say. It looks to me like there is zero silver lining here. Can these personal guarantees mean that they will lose their family business and family home? There isn't a specific mention of family home or the family business (pub) in the guarantee - does that matter? I can't find any newspaper reports of people loosing their family home where they give personal guarantees for debts - does this mean it isn't happening? Would a guarantor simply be expected to pay what they can towards the debt, or is a charge put over their property, or what happens in practice?
Not looking for loopholes here, they know they're screwed, they just want to get a clearer picture of what lies ahead.
Publican turned developer has Company A, which now has lots of assets, no buyers, and lots of debts (circa 1 million). Ideally they should have been liquidated a long time ago, but instead they took out loans left right and centre to service their considerable debts. The husband and wife, who are both Directors of Company A, have both given personal guarantees to get company loans - husband gave it for initial loan that enabled him to get into developing, and wife went guarantor for a considerable personal loan that her husband got some years later to service this debt. No legal advice was obtained for either case, they waived this in signed declarations.
Revenue are now pushing for payment of a settlement with them, both personally and by the company, so tipping point has arrived.
They've asked me to give them some advice on this before going to the experts and really...I don't know what to say. It looks to me like there is zero silver lining here. Can these personal guarantees mean that they will lose their family business and family home? There isn't a specific mention of family home or the family business (pub) in the guarantee - does that matter? I can't find any newspaper reports of people loosing their family home where they give personal guarantees for debts - does this mean it isn't happening? Would a guarantor simply be expected to pay what they can towards the debt, or is a charge put over their property, or what happens in practice?
Not looking for loopholes here, they know they're screwed, they just want to get a clearer picture of what lies ahead.
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