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tom
Junior Member
181 Posts |
 Posted - 10 July 2008 : 23:05:36
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Hi All. I signed a personal guarantee for my company before I was bankrupt. I was then made bankrupt by HMC. I was discharged this April and now the banks has sent me letters saying I need to pay them back. What is my legal position in this. Thanks for reading.
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John
New Member
United Kingdom
73 Posts |
Posted - 10 July 2008 : 23:19:59
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Hi Tom
What are the banks chasing?
When you were declared bankrupt you will have been given a questionnaire by the OR's office in which you were asked to list your debts.
Were these debts listed, and were they secured or unsecured? |
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tom
Junior Member
181 Posts |
Posted - 10 July 2008 : 23:37:50
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| Thanks Assist. The bank is chasing me for a secure overdaft facilties against my houseand the other is chasing me for a personal guarantee. Both were listed. The house was sold by the BS, but there were not enough funds to cover the secure overdraft, guess that is why they are chasing me for the rest. Are they just trying it on to see what my response is?? thanks all |
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melanie_giles
Senior Member
1191 Posts |
Posted - 10 July 2008 : 23:40:56
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This is an interesting point, and one which I am not sure I know the answer to!
My gut feeling is to say that the contingent claims were caught in the bankruptcy, but if those debts were fully covered by the company's undertaking and assets at the time of your bankruptcy, then I am not sure this could be viewed as a debt - although they were undoubtedly contingent creditors.
I suspect that it is all in the timing, in that the personal guarantee does not crystallise until called upon, and as this did not happen until you were discharged from bankruptcy then the debt is deemed to be post-bankruptcy, but I could be wrong and I will make my own researches into this.
I love a challenging question at this time of night, and it will be interesting to see what the other experts say when they log on in the morning.
For an informal chat about any financial difficulties, or advice as to the options available, I can be contacted via my website - www.melaniegiles.com |
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John
New Member
United Kingdom
73 Posts |
Posted - 10 July 2008 : 23:44:42
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Yes Tom, I think they're trying it on.
What happened to the limited company when you were made bankrupt? |
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tom
Junior Member
181 Posts |
Posted - 10 July 2008 : 23:47:54
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| once was struck off and the other was left running.regards |
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Suzanne
Average Member
United Kingdom
869 Posts |
Posted - 11 July 2008 : 09:23:29
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Hi tom
I would say that the personal guarantee was not payable until the limited company was unable to pay. Therefore if this happened prior to your bankruptcy the debt would be caught in the bankruptcy. If it happened after the making of the order, it becomes a post bankruptcy debt.
A personal guarantee is only enforceable when the original debtor (the limited company) fails to pay.
Suzanne Stocker
Bankruptcy Manager
Jones Giles Ltd
www.jonesgiles.co.uk
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tom
Junior Member
181 Posts |
Posted - 11 July 2008 : 10:12:31
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| thanks all. I fail to pay and both of those were on the OR form. One company was struck off during my bankruptcy and the other I informed my trustee about it. So both of them knows I was made bankrupt. More advice please. thanks |
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JulianDonnelly
Junior Member
United Kingdom
325 Posts |
Posted - 11 July 2008 : 10:20:35
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Hi Tom,
If in doubt, why not talk to the OR? I have seen it before where debts crawl out of the woodwork post-BR, but the OR has still managed to get them written off.
Regards
Julian Donnelly
Spokesperson for www.Bankruptcyhelp.org.uk |
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tom
Junior Member
181 Posts |
Posted - 11 July 2008 : 10:54:14
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| Thanks Julian, I have spoken to one of the bank's and he said he didn't know I went bankrupt. I guess the trustee didn't inform them. The second bank I know they knew of my bankruptcy because it was secured on the house and when the trustee was about to sell the house it was them who said no to it, so that was why the house went back to the BS. Anymore advice will be appreciated. best wishes to all. This is a great site |
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JulianDonnelly
Junior Member
United Kingdom
325 Posts |
Posted - 11 July 2008 : 11:09:30
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Hi Tom,
Your BR would have been publicised in the London Gazette and the Stubbs Gazette which are closely monitored by ALL financial institutions, so i sincerely doubt that one of your banks was unaware of the BR. Again, have a converation with the OR for more guidance in relation to your case.
Regards
Julian Donnelly
Spokesperson for www.Bankruptcyhelp.org.uk |
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melanie_giles
Senior Member
1191 Posts |
Posted - 11 July 2008 : 22:33:29
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Suzanne is right - if the guarantee crystallised after the date of discharge then I think you have a problem - but as this is a relatively major issue you ought to take legal advice at the earliest opportunity.
For an informal chat about any financial difficulties, or advice as to the options available, I can be contacted via my website - www.melaniegiles.com |
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tom
Junior Member
181 Posts |
Posted - 12 July 2008 : 00:55:59
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| Thank you all experts. Looks like I might have to go bankrupt again, seems like they have waited until I am discharge before sending the demands. Thought I could start again, but looks like it will be sometime before I can get anything going. At least the OR interview will be quick. |
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Topic |
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made bankrupt by HMC, what is my legal position?
