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Jamie-Law, Solicitor
Category: Law
Satisfied Customers: 6403
Experience:  Solicitor
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I was a guarantor on an invoice discounting finance deal

Customer Question

I was a guarantor on an invoice discounting finance deal with Lloyds Commercial Finance for a limited company with two other directors. I subsequently left the co, resigned as a director/shareholder etc and informed the bank that I wish to be removed as a guarantor in writing. They failed to remove me and the co 1 year after I left was liquidated leaving 37k outstanding - I received a Stat Demand for the full amount - would I be liable?
Submitted: 9 months ago.
Category: Law
Expert:  Jamie-Law replied 9 months ago.

Hello my name is ***** ***** I will help you with this.

Did they ever say they would remove you?

Customer: replied 9 months ago.
No they didn't and I didn't get any reply despite sending two letters and being told they wouldn't do anything on the telephone
Customer: replied 9 months ago.
I had no control over what was happening to the business after I left and the 37k owed was by firms of solicitors so it couldn't not be paid as it was all legal aid work.
Customer: replied 9 months ago.
Lloyds have now served me with a stat demand and are hinting at bankruptcy proceedings, which are currently on hold to enable me to send a statement of affairs. I don't have any assets, I'm self employed with a low income.
Expert:  Jamie-Law replied 9 months ago.

Its bad news I am afraid. Even if you have no control, you have signed a PG.
This means you are personally liable for any and all debts UNLESS you have been released.

As you do not I am sorry to say you are liable. You should have made sure the bank agreed to release you and this was in writing.

I am sorry if this is not the answer you want, nor the one I want to give you, but I have a duty to be honest.
Can I clarify anything for you about this today please?

Expert:  Jamie-Law replied 9 months ago.

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