Author Topic: Business Debt.. discrepancy on the agreement  (Read 711 times)

liquidkristal

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Business Debt.. discrepancy on the agreement
« on: Apr 14, 2011, 11:31:47 PM »
I was a director at a company that folded about 1 year ago, myself and the other owner had 2 personal guarantees in place, 1 with HSBC and 1 with a place called Partnership Investment Finance (PIF).

Now they have both called in the debt under the personal guarantees, however HSBC have been rather slow to move and are not really an issue, but PIF are being very aggressive, especialy with the other director as he owns a house. Now they have sent him out a copy of the signature sheet on the agreement, but not the first page with the terms and conditions on it, to show that the debt is owed.

I happen to have a fully copy of the agreement from when it was first set up and it has our company address down as somewhere we have never been (we can prove this via companies house. now the only reason I can think of that the address is wrong is that the loan was only available in specific postcodes for some european regeneration project and the company seting up the loan may have supplied incorrect information on the application to make us "eligable". so with that in mind is the contract enforcable and does the debt stand.

The other issues we had is that in the 1 1/2 years that we had the loan from them they never collected a penny despite us sending off direct debit forms every few months when they noticed that they hadn't collected any cash from us, yet on the paperwork that has been sent to the other director they are gonig after him for the full amount + interest even though it should be substantially less if they had collected on the direct debits as was the plan.

We had a meeting with them today and the outcome was that unless we can get a lump sum of about 15K to them inside 14 days they are going to persue the other director for his house, he can raise some of the cash via unsecured borrowing, I cannot (even though I have higher income I am already at my limit for personal borrowing (personal loans that were put into the business in its final stages to try to get it through the rough patch that eventually killed it)).

now PIF are pushing hard for their cash, and the other director is adament that it is good to get them out of the way that way HSBC will see that they are the only creditor left then and be easier to deal with / will be able to give us a better deal on repayments etc (although I can see them being far harder to deal with and am already looking at the IVA route as servicing current repayments is not a problem, but adding on another 400 ish a month is not feasable)

Any help is appreciated.



James Falla

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Re: Business Debt.. discrepancy on the agreement
« Reply #1 on: Apr 15, 2011, 04:02:46 PM »
Hello Liquidkristal
 
In terms of whether the loan with PIF stands or not, you should really take legal advice. However, I believe that because the loan was origionally taken by a company it will almost certainly stand. I know there is a lot of discussion currently about personal loans not being enforceable because of technicalities. However, where companies are involved I do not think  it is so easy to make such arguements as as company is seen by the courts to be less vunerable than an individual and more able to take professional advice and then live by its actions.
 
The only way that PIF can try to make a claim on the other director's house is if they first take a CCJ out against him. If this is not paid they can then apply for a charging order. This secures the debt against the property. It is a common remedy taken by creditors. However, it is unlikely that they will then be able to force the sale especially if it is his place of residence.
 
If the other director does borrow personally to pay PIF then I assume this will mean the PIF debt is then settled in full or would they still pursue you for any of the balance? Either way, an IVA might be a sensible way to deal with your debt. However if you are expected to make any money available to your fellow director to compensate for the loan they are taking, remember you will not be able to continue to pay this if you start an IVA.
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