bankrupt because I put my name to a loan

[gareth3]

I was made bankrupt because I put my name to a loan to a company, but the bank wrote off the debt to the company as a bad debt, can or should I have been made bankrupt

[MelanieGiles]

I assume that this was a personal guarantee liability? If so your bankrutpcy is valid.

Regards, Melanie Giles, Insolvency Practitioner for over 20 years.

To have me propose an IVA for you, please visit:
http://www.melaniegiles.com/ivaEnquiry.asp

See customer feedback at:
http://www.iva.com/iva_companies/IVA_Advice_Bureau.asp

[gareth3]

Yes, but if the bank wrote the debt off to the company as a bad debt, can I then be held liable? and made bankrupt

[Beechy]

How do you know that the Bank wrote the money off.?

Write off is thing the banks and lenders have to do when they are unlikely to collect the debt. It is an accounting tool, this does not mean that they cannot still pursue for the money.


Dave Beech

[MelanieGiles]

The fact that the Bank has written the debt off against the company, does not mean that they cannot pursue you personally. That is the whole point of directors being asked to give personal guaranteeds - they give the bank additional security.

Regards, Melanie Giles, Insolvency Practitioner for over 20 years.

To have me propose an IVA for you, please visit:
http://www.melaniegiles.com/ivaEnquiry.asp

See customer feedback at:
http://www.iva.com/iva_companies/IVA_Advice_Bureau.asp