on a scottish trust deed soon
have 2 personal guarantees from a limited company
will my business partner have to pay it all if i am on the trust deed or will they become part of my deed?
The debts will need to be included in your Trust Deed, but if your business partner has also guaranteed the debts then he is equally liable for the whole lot. Once your Trust Deed is discharged, you will be released from the guarantee liability, but your partner would not.
Are the guarantees likely to get called upon, or are you just enquiring as to the contingent position in the event that this might happen at some stage in the future?
Have you disclosed these debts to your IP, and if so what advice have you been given?
company going bust soon
partner and i have 2 guarantees in place
1 to bank and 1 to landlord
both if i dont pay he is liable for total
but i might not be in position to pay if company goes down so may apply for a trust deed or indeed bankruptcy at the worst case scenario, if cant find work right away.
would like to know that if under a trust deed myself, then would he only have to pay his half of guarantee as mine is included in deed?
I'm pretty sure that he will be liable for the full amount.
Sharing from experiences of dealing with debt
The greatness of a man is not in how much wealth he acquires, but in his integrity and his ability to affect those around him positively.
Bob Marley. http://kallis3.blogs.iva.co.uk
Kallis is right - unless the guarantee documentation states otherwise, you will both be jointly and severally liable for the full amount.
Does the company have any assets to mitigate any claim, and is your co-director in a position to pay the liability if you do enter into a Trust Deed or declare yourself bankrupt - which incidentally you can only do if a creditor has commenced legal proceedings against you.
Assets minimal
codirector would not be too happy if has to pay my debt and would struggle to pay both shares
I am now in conversation with cccs as personal creditors falling behind and am unable to pay them since downturn in business. i still pay my mortgage and have changed it to interest only since drop in salary
Thanks
finally got first interview on monday past.
and yes they do trust deeds as far as i can tell.
Have another interview after send back my papers etc with my earnings and outgoings.
Is there a figure they would look for being left to allow a trust deed or IVA?
On the figures available to me at the interview,it was suggested I do a DMP for 12 years as I was worried about the house The next day there was more problems for the company and my salary would be a lot less putting me from having 400 to put in a dmp to having 0 for the plan due to the cut If this is the case is BR the only way or would I need more disposable income for a trust deed There is 20k equity when the house could be sold and if the business fails completely I need to find 25k for personal gaurantees taken out when I had plenty of equity
Contact Invocas or someone like them as Melanie says for a second opinion
Regards, David Mond, Insolvency Practitioner for over 46 years. Personal Insolvency Practitioner of the year 2012, Personal Insolvency Practitioner of the year finalist 2013 & 2014 awarded by Insolvency & Rescue Magazine and 2015 finalist for Personal Insolvency Firm of the Year.
