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JGM
JGM, Solicitor
Category: Law
Satisfied Customers: 11154
Experience:  30 years as a practising solicitor.
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, 2 years ago I was taken to the cleaners by a factoring

Resolved Question:

Hi, 2 years ago I was taken to the cleaners by a factoring company when the business I was joint shareholder in went into liquidation. I was left with nothing, they took all my equity share of a marital home that was subject to a split at the time. They arrested my wages when I started working and have been deducting £300 per week ever since. As far as I am aware they have never taken any money from my business partner at the time however this hasn't been clarified either way. That's the shortened version of a bigger story.
I would like to appeal their actions and / or pursue my ex business partner for 50%. Can you advise my next move?
Submitted: 2 years ago.
Category: Law
Expert:  JGM replied 2 years ago.
Thank you for your question.
If you signed a personal guarantee for the debts of the company you have no recourse against th factoring company. However you do have a right of relief against your business partner if he signed a similar guarantee and has not contributed towards clearing the debt. Where liability is joint and several, any monies paid by you are deemed to include his half share and you can pursue him accordingly.
I hope this helps.
Please leave a positive response so that I am credited for my time.
Customer: replied 2 years ago.

Thanks for the response. The factoring company did produce a signed guarantee however that was never agreed at the time, on the contrary it was discussed that no guarantees would be signed and I don't recall signing one. They wanted to continue with myself in a new company but when I refused they went for the jugular. How do you suggest I proceed against my business partner?

Expert:  JGM replied 2 years ago.
In that case what was the legal basis for them pursuing you personally?
Customer: replied 2 years ago.

They initially sent in there 'friendly' administrator with a view to trading through and emerging as a phoenix company with only me as shareholder however I let them down by accepting a job elsewhere. Then they claimed there was a shortfall in funds due for payment, I offered to help speed and clear that process up and they answered no they didn't want to allocate any more time or resource to it. They knew my personal situation which was separated pending divorce with house on the market, they went for that instead and got £28k from me, my share of the equity in the house, and so far 2 years at £300 per month. They wont discuss with me whether my ex business partner has been pursued or is paying anything nor have they discussed the exact position with me re the account. I feel I have a case against them, negligence during handling the account and not signing us up again after the term expired being two of the key points.

Expert:  JGM replied 2 years ago.
Do you accept that they had a personal guarantee signed by you?
Did they have a personal guarantee from the other director?
Customer: replied 2 years ago.

They have produced a document to that effect, Guarantor & Indemnifier is the heading. I don't recall agreeing to that in fact I recall a discussion about not having to agree to that but agreeing to help them 'clear up any issues' should that situation come about. It is my signature but I don't recall signing under that heading.

I'm not sure, like me he wouldn't have been aware he was signing that but I cant see why he wouldn't have signed the same documents as myself or vice versa.

Expert:  JGM replied 2 years ago.
Assuming he did sign the same guarantee, you can raise court proceedings against him for one half of the sums you have had to pay out.
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