We might lose our house - bank calling in personal guarantee

(4 Posts)

Give Business Debtline a ring pronto and talk through your options with them. They are the sister arm of National Debtline and will give you free, impartial advice.

www.bdl.org.uk

MoreBeta Mon 17-Jun-13 15:01:23

It depends on the exact wording of the personal guarantee.

They may attach a charge to your house that has to be discharged if you sell it. They may already have a charge on your house. The bank may not be able to call in the charge or be able to force you to sell but unless you pay off the debt it stays attached with the debt accumulating interest until you sell your house or you die.

You need to look at the exact wording. You need legal advice. It may even be that a court might decide that you were misled.

It may be that the bank tries to force/persuade you to sell your house to pay off the business debt by taking out a mortgage on your house. Do NOT agree to that. Many business people do that in desperation to try and keep the business afloat and then lose their house 18 months later. Once a bank has enforceable security via a mortgage you really have nowhere to go.

Letting the business fail if the bank have no enforceable charge on your house might be a much better solution.

keli5325 Thu 13-Jun-13 19:35:25

does the bank have a charge over your property?

Sunshinesarahjane Thu 13-Jun-13 14:35:48

Does anyone have any experience of this? Our family business is in trouble and if the bank call in our Personal Guarantee (signed years ago, before the recession hit) we might lose our home

Join the discussion

Join the discussion

Registering is free, easy, and means you can join in the discussion, get discounts, win prizes and lots more.

Register now