Help with business O/D

[GlobalC]

Hi Guys, heres a little background.

I had a ltd company along with another director. We ran out of work and no longer trade. We had a overdraft of 5k and have not paid anything back. At the time we took this overdraft there was a garantee in place, however i believe this needs to be re-applied for every year and im sure that when we re applied there was no garantee in place. I will have to dig out paper work.

I have no intention of paying this debt back as it was a ltd business, however what i would like to know is what can they do in this situation?

Thanks for help guys

[Never-In-Doubt]

Re: Help with business O/D

was this HSBC by any chance? If so then it'll be personally guaranteed by the directors (not their assets) and yes, they need to reapply each year.

Here's hoping it's one of those

[GlobalC]

Re: Help with business O/D

Ok guys, i have found some paperwork.

This is a Natwest business overdraft.

In their letter they say Item of security is Guarantee...date given...14/08/2007 amount outstanding nearly 6k

So i have found paperwork, which doesnt really make sense. Let me explain, we had a 5k o/d for business purposes and a 130k loan, the loan has been paid back when we sold assets. The business then ran out of work back at the end of 2010, the company itself had no assets and just this 5k o/d and 1.8k owed to yell, yell then objected to the company being struck off, but they havent come for the money and the company is pending being struck off again

The securites held according to paperwork as follows

1 Guarantee by myself and ex partner for 130000k
2 Freehold 1st legal charge, this was over the property which was sold and debt for 130k was paid off

Should i scan over documents?

[GlobalC]

Re: Help with business O/D

so there was no liquidaters involved...thanks

[GlobalC]

Re: Help with business O/D

also the properties were sold to myself

[GlobalC]

Re: Help with business O/D

can anyone help me with this, or should i seek legal advice somewhere? thanks

[Never-In-Doubt]

Re: Help with business O/D

I'll ask Paul to pop in......

[GlobalC]

Re: Help with business O/D

I have requested a copy of the gaurantee, will update when i have received it

[GlobalC]

Re: Help with business O/D

Hi Guys, i have recieved a copy of guarantee, should i send this for niddy to have a look at, or do i just need to come to some agreement about repayment on this stupid debt?

[Never-In-Doubt]

Re: Help with business O/D

Yes, send it over and see what he says!

I cannot help on this as I do not understand the insides of this, hence I suggested Paul.

Sorry......

[GlobalC]

Re: Help with business O/D

thanks Niddy and flower, so should i send a pm to Paul and see what he thinks?

[Never-In-Doubt]

Re: Help with business O/D

thanks Niddy and flower, so should i send a pm to Paul and see what he thinks?

I would yes, I am unsure of the actual merits of such guarantees so would not be much use to you unfortunately....

[GlobalC]

Re: Help with business O/D

Hi Guys,

Ive tried to Pm Paul but he hasnt responded is he away? or could i ask one of you to get him to look in here for me please, i'd really like to know where i stand before my next move. Thanks

[Paul.]

Re: Help with business O/D

Sorry been away since Friday

Im not sure how much can be done with business overdrafts to be honest, as they dont fall within the UTCCR notwithstanding the Supreme Court ruling on bank charges

[Paul.]

Re: Help with business O/D

Edit

Should read posts properly before replying

Thought this was more angled at bank charges

Ugh Guarantees are a pain in the arse. I did some research on them a while back but i would really need to see the papers first to see what they had over you