Need help regarding Personal Guarantee HSBC

[pcdokta]

Hi, I am a new user and would appreciate some advice on my situation.

 

As director I jointly signed a guarantee with HSBC in 2002 for an overdraft of £13,000

I resigned as a director of a company in 2003, which was done hastily, and left to the accountant to sort out.

(foolish I know)

The company was in good credit at the time of resignation.

 

In 2011 I received letter from HSBC quoting " the above company has been placed into liquidation on July 2011, attached is a letter in respect of the Guarantee you have given this company.

 

After explaining my situation to HSBC they advised me that they would not release from the guarantee, but would not pursue me if the existing director and guarantor paid the debt. (which he hasn't)

 

The debt was passed to Metropolitan Collection Services, who ignored all correspondence from me.

 

Now i've received a letter from Wescot demanding over £30,000?

 

I rang them to tell them I didn't owe any money to anyone, they couldn't even find me on there system?

 

Is there anything I can do, I have a statutory declaration from the other director stating that I don't have anything to do with this debt or the company.

 

Regards

 

PC

[BRIGADIER2JCS]

Hi welcome to CAG, I would check with a solicitor, but surely your liability ended when you resigned as a director, the statutory declaration and the resignation should suffice.

 

Please stay off thr telephone deal with this inwritting only.

 

Write to Westcott and tell them your directorship has ceased and send a copy of the stat dec.

 

BTW do you have a copy of the guarantee document, if not insist the bank produces on complete with the terms and conditions.

[pcdokta]

I checked with solicitor they said I have to pay, a personal guarantee remains until you request to be released from it.

Yes I received a copy of guarantee from HSBC.

[BRIGADIER2JCS]

Ahh I was presuming you had done this on resignation, not so??

[pcdokta]

i'm afraid not.

[Conniff]

How many were signatories to the loan?

Do you have your own house as mortgagee?

 

You will need to know why this loan has increased by so much. Can/are you talking with the other directors?

[pcdokta]

their are two signatures.

yes i have a mortgage

yes i am talking to other signaturee

 

regards

[Conniff]

If you are on good terms with the others, then get together over a pint and see if they will accept the debt as theirs. If they do, then get a legal document declaring that and bobs your uncle. You really need to do this before a course of action or settlement if feasible.

 

If they won't agree, you could still let a court decide if you remain liable.

 

How, after 10 years, has the loan increased, has it been topped up? it would appear that way.

[pcdokta]

I already have a statutory declaration stating the debt isn't mine, should I get one that states the debt is other signaturee.

I think the total debt is 30k owed to HSBC by other signaturee and they may have linked accounts (just guessing)

I assume my debt is 13k thats what i signed for on the guarantee(guessing again)

 

thanks

[steampowered]

When you sign a guarantee, you promise to repay the debt if the borrower fails to do so. It does not matter if you resigned and it does not matter if you have a statutory declaration (I am not sure what you mean by this declaration). Only HSBC can release you, not the company and not the other directors.

 

If there are other guarantors, HSBC is probably chasing all of you at the same time. However, if you are the only guarantor, then we have a problem. If the other directors did not sign a guarantee then they probably don't have to pay anything, even if they were directors long after you were. You can ask them to pay but if they are not guarantors then they may refuse.

 

You probably agreed to guarantee the company's whole liability. This will probably include interest, collection costs and penalty charges as well as the main debt. Check the guarantee to see what it says. The figure will probably be higher than 13k, how it has reached 30k and whether this is justified I cannot say. You should ask for details of this.

 

It is definitely worth investigating what happened with the liquidation. This debt should have been paid when the company was liquidated, assuming there was enough money in the company. If the money was paid away to the shareholders when the company was wound up you may be able to clawback some of that money. You can get a copy of the liquidation documents and accounts by paying a quid on the Companies House website, you should do this urgently. Let us know what these documents say.

Edited January 8, 2013 by steampowered

[pcdokta]

I have read thru guarantee, basically reads amount payable under this guarantee limited to £13000 interest at 3% above base rate from date of demand which was 2011.

In liquidators report in reads under secured creditors, The company created debenture incorporating a fixed and floating charge in favour of HSBC (same date of guarantee), at date of liquidation the companies indebtedness to HSBC was est £30k and a claim of 39k has been received.

 

Dont know what that means, could you please let me know in plain english.

 

Thanks

[GuidoT]

The liquidators report means that in the event the liquidation results in any surplus (dividend), HSBC will be paid off in preference to other unsecured creditors.

[pcdokta]

I have written to HSBC to clarify the debt over 3 weeks ago but I have had no reply, how long should I wait.