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Ask James Mather Your Own Question
James Mather
James Mather,
Category: Law
Satisfied Customers: 22629
Experience:  Senior Partner at Berkson Wallace
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My co director has lost everything in his previous business

Customer Question

My co director has lost everything in his previous business which went into administration. He had to personal guarantees Both of which he s trying to repay. One to a paper merchant and the company he now has a 40% share in is paying that back. And to lloyds bank who had guarantees on his 3 properties. He had to sell his main residence and is now in rented property. The 3 buy to let's the bank had a charge on. One has been sold and they have had the proceeds The other two he is paying mortgages on each month and paying lloyds as well. Lloyds have no signed guarantee form. They will not reach an agreement to settle no matter what he try's to offer. He is 58 years old and needs to get this guarantee off his back to be able to move forward. What can he do ???
Submitted: 4 years ago.
Category: Law
Expert:  James Mather replied 4 years ago.

Is going bankrupt an option?

Please bear with me today. I am on and offline.

Customer: replied 4 years ago.

No it's not
And they have told him it will never go until paid in full

Me too
Expert:  James Mather replied 4 years ago.

Why isdnt bankruptcy an option?

Has he also considered an IVA?

How much is outstanding?

Customer: replied 4 years ago.

Gtee was £100k paid about £25 k
Lost a million pounds and his home
His brother in law bought the house they now rent
He needs to get a mortgage to buy it off him
Wants to get his credit rating to a level he can do this
Paying. £300 pm
Has repaid everything else
Expert:  James Mather replied 4 years ago.

I'm sorry to have
to tell you that you are looking for a solution to an impossibility. The lender
will clearly not negotiate (although letters from a solicitor or insolvency
practitioner are likely to be received better).

The fact remains
that he owes £75,000 under the terms of personal guarantee and his credit rating
will not be good. Even if he paid the money back, his credit rating will be poor
for the next five years.

In these
circumstances, insolvency practitioner bring pressure to bear on the lenders to
say either accept this reduced amount or he will go bankrupt and they will get
nothing. He is playing poker/hardball and if they simply take a hard line, he
either has to go bankrupt or pay up.

Of course, he
needs to be able to raise some money in order to negotiate

I would make an
appointment to see an insolvency practitioner.

I appreciate that
is probably not the answer you wanted but there is no point in me misleading

Can I assist any
further with this? Please bear with me today and this weekend because I will be
online and off-line.

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