A call on a personal guarantee can be very stressful but it may be managed with meaningful, professional engagement with the creditor.
If it is ignored or the wrong representation is made, often by ‘misplaced help’, then the situation can quickly deteriorate.
Very often the creditor will issue a Statutory Demand, the precursor to potential Bankruptcy proceedings.
If a Statutory Demand is not engaged in any way within 21 days, the creditor can move to next step and a Bankruptcy Petition may be issued.
Stating the obvious, this brings everything into focus and everyone pays attention!
Seeking expert guidance
If you have more than enough assets to cover the personal guarantee, it should be entertained in full. The integral point in such a case is to minimise the costs, as the issuance of Petitions will see costs ‘mushroom’. Offers in this instance can still be made but need to be supported by full representation and detailed explanation, the presentation is crucial.
Alternatively, if you cannot honour the personal guarantee in full, engagement is as important coupled with correct professional advice.
This seems a very logical thing to say, but we have seen many instances of ‘professional advice’ given by an advisor, who does not have expertise in this niche field of work.
Reiterating presentation is the key as you don’t want to create any misconceptions at this stage. It’s all about engaging and managing the creditors’ expectations. Delivery of the information that will facilitate a decision is imperative.
We would respectfully suggest that you do not rely on the ‘family friend/good old’ accountant or solicitor here. This is a pressurized debt situation with defined time constraints and the strategy and its application is vital.
We are experts in this niche! As ever we offer a free initial consultation, so we know that the cases we take on can be successful.
Call Bell & Company today on +44 2895217373.