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Alex J.
Alex J., Solicitor
Category: Law
Satisfied Customers: 3655
Experience:  Solicitors 2 years plus PQE
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Were having an issue with personal guarantees signed years

Resolved Question:

Hi were having an issue with personal guarantees signed years ago in 05 to 07 for finance and leasing on machinery I signed the other directors name to the guarantees without his permission witnessed by the bank official on the bonnet of his car . The bank were made aware of this issue in 2009 and still are persueing the issue
Submitted: 1 year ago.
Category: Law
Expert:  Alex J. replied 1 year ago.
Hi,
Thank you for your question and welcome.
My name is ***** ***** I will assist you.
Are they only pursuing you or the other director as well?
Kind regards
AJ
Customer: replied 1 year ago.
Both the other diector has assets I dont
Expert:  Alex J. replied 1 year ago.
Hi,
Thank you.
Do the other directors accept liability for the Personal Guarantee? The problem is if they did not consent to the guarantee or actually sign it then they will have grounds to say they should not be bound by it.
Are the bank pursuing the other directors?
Kind regards
AJ
Customer: replied 1 year ago.
Yes they are persueing the other director and the other director is not accepting liability
Expert:  Alex J. replied 1 year ago.
Hi
Thank you.
Under the Statute of Frauds you can only take liability for another persons debt in writing.
If the director did not sign this, then if I were in his position I would be defending it as best as I can.
Was it executed as a deed? If so the creditor will have up to 12 years to enforce it?
Kind regards
AJ
Customer: replied 1 year ago.
No Not executed as a deed there trying to bring it to court soon
Expert:  Alex J. replied 1 year ago.
Hi,
Thank you.
It will be up to the other director to show that his signatures was not actually on the deed and therefore he did not personally guarantee the debt. This should be relatively straightforward to do - he could get the expert opinion of a handwriting expert.
Is the director threatening action against you?
Kind regards
AJ
Customer: replied 1 year ago.
Not yet could he bring a case against the bank for this seen as they facilitate the wrongdoing
Expert:  Alex J. replied 1 year ago.
Hi,
Thank you.
He could implicate the bank in potential fraud - but he would have to prove that they ought to have reasonably know that it was not signature. To do this he would have to get a statement from the bank official or you would have to give evidence.
The point is thought, if he does not pay the guarantee he wont suffer a loss and without a loss he wont have a claim against the bank.
Kind regards
AJ
Customer: replied 1 year ago.
Thanks for your help alex j
Expert:  Alex J. replied 1 year ago.
Hi, No problem. Is there anything else you would like to discuss? Kind regards AJ
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