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JGM, Solicitor
Category: Law
Satisfied Customers: 12182
Experience:  30 years as a practising solicitor.
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I am a personal guarantee for a company I used to be a director

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I am a personal guarantee for a company I used to be a director of. We used an invoice company and a customer has failed to pay £2600. The invoice company are threatening to take the customers to court but also myself under the guarantee. I have written confirmation that they have threatened legal action against the customer but I think their intention is not to take action but pursue myself for the money.
Do I have a defence if they have misled me? I have been fully cooperative. The customers also emailed the invoice company agreeing to the debt and that they have no issue with paying.
Thank you for your question.
What does the personal guarantee say? Some say that the Invoice company has to take action against the customer before they can take action against the guarantor. Others don't and the guarantor is liable immediately.
You could only see that you had been misled if they did not give you an opportunity to take separate advice on the guarantee and you could establish that you didn't understand it. It is unlikely that you could establish that in this commercial context.
However where we have an admission of the dates one would have thought that they should not have any difficulty in obtaining payment. From what you see you should argue that implementation of the guarantee is premature.
Happy to discuss further.
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