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Alex J.
Alex J., Solicitor
Category: Bankruptcy Law
Satisfied Customers: 3840
Experience:  Bankruptcy, liquidations, administrations, pre pack sales, re use of company names and director duties and offences.
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I had a business that went into liquidation. I had some

Customer Question

Hi. I had a business that went into liquidation. I had some goods supplied with a personal guarantee attached to them. When the business went under a Liquidator was appointed and they found a buyer for the business as a whole, stock, assets work in progress etc. The debt that had a personal guarantee was discussed by just me, new owner and with the suppler and they agreed to transferred the debt to the new company who purchased my old one. I have now found out that the new company is going into liquidation too. If they have not paid off the account which I previously had a PG against, can this come back to me? The company I had has had account statement showing a balance of £0. so can they put the debt back on a company which is being closed by the liquidators and then personally chase me? I have documents you can view if you need to clarify anything.
Submitted: 2 years ago.
Category: Bankruptcy Law
Expert:  Alex J. replied 2 years ago.
Hi, Thank you for your question and welcome. My name is ***** ***** I will assist you. Presumably your personal guarantee was only in relation to the debts and liabilities of the old company? If the new company has incurred new debts and liabilities, your guarantee was not applicable to a new entity's obligations. For that reason they would not be able to chase you personally unless you signed a new guarantee for the liabilities of the new company. Do you have the guarantee wording?
Customer: replied 2 years ago.
Hi. Yes I only signed a PG for the my old company PDRD Ltd. When the new company JNP STEEL LTD bought PDRD LTD assets and stock etc. they agreed with Parkers steel that they would take over the debt owed. So the PDRD Account statement (as attached) with Parker Steel now says £0 owed. But the money which was owed will have been in the name of JNP Steel Ltd. If JNP have not paid them, can they transfer it back to the PDRD Ltd account and chase me? Thanks
Customer: replied 2 years ago.
Just to clarify, I am not part of the new company JNP STEEL Ltd, it was one of the old employees who bought it as JNP. I have moved on to another job.
Expert:  Alex J. replied 2 years ago.
Hi, Thank you. This guarantee only applies to obligations incurred by PDRD Limited - it does not apply to obligations or debts incurred by any other company or entity. Therefore this guarantee wont cover new co. Kind regards AJ
Customer: replied 2 years ago.
Thank you. So the fact that Parker steel have transferred the debt means that they have in theory, taken payment from JNP Steel for our account with JNP Steels account. Now the debt is JNP's and has nothing to do with PDRD or my PG. Sorry to 'labour' the same point, but I and my wife are very concerned that it might come back to me and I lots a lot of money when PDRD was liquidated including having to sell our house. Thanks
Customer: replied 2 years ago.
The fact that PDRD owed the debt, but JNP have not paid it is their 'problem' so to speak. They have in theory had payment from JNP for the PDRD debt?
Expert:  Alex J. replied 2 years ago.
Hi, Thank you. When the debt was formerly assigned to the new company, I would say it then ceased to be your obligation. Your obligation was to guarantee the liabilities of old co only - if this new company took over the liability, it is no longer a liability of old co and therefore you no longer personally guarantee it. Has the supplier made a demand on the PG? Any feedback is gratefully received. Kind regards AJ