Jump to content
Battle weary

URGENT INFORMATION I Won! Liquidator lost!!!!!!!!!!!!!

style="text-align:center;"> Please note that this topic has not had any new posts for the last 3588 days.

If you are trying to post a different story then you should start your own new thread. Posting on this thread is likely to mean that you won't get the help and advice that you need.

If you are trying to post information which is relevant to the story in this thread then please flag it up to the site team and they will allow you to post.

Thank you

Recommended Posts

My business went into voluntary liquidation in February 2007. I was made to sign what I believed to be a personal guarantee to make payment of any shortfall in the liquidators fees if there were insufficient assets, which I believe is a fairly standard practice. I did not pay and ended up being summonsed for non-payment by the Insolvency practitioners solicitors. The hearing took place last friday.


I spoke to the solicitor for insolvency practitioner before hwe went into the hearing and they were trying to get me to agree to some sort of instalment arrangment. I declined and the court case went ahead.


The Judge asked the solicitor acting on behalf of the Insolvency Practitioner if the Personal Guarantee that they were asking for enforcement on was the one that they had put in their disclosures. The solicitor said that it was. The Judge then went on to say that there was a law called the Statute of Frauds 1677.


The Judge then asked the solicitor to read out what was placed immediately above my signature on the letter of guarantee drawn up by the Insolvency Practitioner. It reads "We agree to the terms of this letter for and on behalf of XYZ Ltd". Below is my signature and underneath that is the title "Director".


The Judge then said that I was acting as an officer of the company and had signed the guarantee as Director and that any demand for payment should be directed to the insolvent company. If Insolvency Practitioner had wanted me to act a as a personal guarantor then any reference to the company and the word director should had been removed from the form. He then dismissed the case. :smile:


I am not sure if Insolvency Practitioner has the right to appeal but for now the matter is closed. Please ask all Directors to check the wording on their Directors Guarantees as they may just be a company guarantee rather than a personal guarantee.

Share this post

Link to post
Share on other sites

Great result! How sad to see a greedy ambulance-chasing shark lose out! It’s about time the insolvency industry had a lot more control over it – it is barely (self) regulated, and is a cheat’s charter.

“The industry is rotten to the core, whether it is in-house recovery and collection, or where agents are used, or where the debt has been sold.” Andrew Mackinley MP, House of Commons, 22 April 2009


If a Cagger helps you, click their star. Better still, make a donation however small, so that CAG can continue to help others.

Share this post

Link to post
Share on other sites

  • Recently Browsing   0 Caggers

    No registered users viewing this page.

  • Have we helped you ...?

  • Create New...