Personal Guarantees - Nicholson Gordon Law

Solicitors who specialises in giving advice on guarantees

Are you concerned about a guarantee which you as a business or an individual have given to a bank, landlord or other creditor?  We can help.

If you are a business owner and/or are a director of a limited company,  you may have signed a personal guarantee when you first started your business, signed a lease, or took out a loan. We can help if you are being pursued for money under a guarantee and need advice on issues such as:-

  • Do I have to pay the money demanded or are there other options available?
  • If I am legally bound by the guarantee, can I negotiate with the bank or other creditor to accept a lower amount than has been demanded?
  • Can I really lose my home or other assets or be made bankrupt as a result of signing the personal guarantee?
  • Are my business partners or other directors equally liable?

It is often possible to challenge the validity of a personal guarantee or limit your liability under it.  However, these cases are rarely straight forward and advice from a specialist solicitor is highly recommended.

Learn more about the representation we offer by contacting us online or ring 01664 431 300 to arrange your initial consultation.

We represented Mr T G of Leicestershire in a claim brought by a bank against him relating to a number of personal guarantees in place at the time that his Company had gone into liquidation. We raised technical arguments relating to the validity of the personal guarantee and eventually a full and final settlement was reached in a sum that was only in the region of 20% of the sum claimed.

Mr W of Burbage was being very aggressively pursued by a finance company claiming the sum of £70,000 in relation to a personal guarantee he had provided related to a Limited Company’s debts. The guarantee was secured upon our client’s property by way of a legal charge. He had previously been advised by another national firm of solicitors that he had no defence to the claim, and should pay the claim. Our advice to our client was that he had a very good technical defence to the claim, that the previous solicitors were incorrect and that we should put forward a robust defence. Eventually the finance Company accepted the token sum of £300 in full and final settlement. Naturally our client was delighted having faced the loss of his family home.