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It depends if the claim has any merit at all. The personal guarantee would as you will know make you personally liable (not the company).
How much is the claim for and could you give further details so I can understand the claim being made.
OK, thanks. If they win, could you pay the sum owed (or do you have any equity in your property)?.
You could defend the claim and that would buy you time - although there is a possibility they may apply to strike out your defence as having no merit (no basis in which to defend) which would mean they win their claim before it gets to a hearing.
Where is the claim at now? I presume you have not filed a defence yet?
OK, if there is no way to pay them back - it would be up to them to try and enforce it. It would cost them more to try and enforce a CCJ. The CCJ would last for 6 years after which it comes off the credit register.
If there is something wrong with their claim and you dispute some or all of it then yes, you can defend it. That would mean the case will take several weeks if not months to be decided.
If you admit the claim then you can ask to pay in installments (form N245 is lodged later on). That's another option.
If they want to instruct baillifs to try collect the sum owed, or if they want to register a charge on your property, summons you to court for questioning over what you can and can't afford, apply to freeze your bank account - all of these cost them extra to do (especially if they are using a lawyer as they have to pay legal fees).
If the prospect of recovering the sum is low they may not enforce it as it's wasted money in their eyes.
The court can decide on the installments issue - I attach form N245 so if you do decide to admit the claim they will get judgment for the sum. After that you send in this form with a fee of £50 (payable to HMCTS) - the court will decide how you pay.
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