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What legal steps does one need to take to enforce a personal guarantee over a defaulting borrower?


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I loaned thousands of pounds to a UK business, a Limited Company, a few years ago in the form of a loan note (also known as mini-bond). To protect my investment, as well as a legal charge on the business, I got a Personal Guarantee from the Director. He has considerable assets, worth many millions of pounds (verified in writing from his accountancy firm).

The arrangement was I would receive monthly interest payments and get my full capital back after two years.

To cut a very long story short, the Director started defaulting on his payments over a year ago. I've chased him up, through every means possible, a thousand times, but he hasn't paid a penny in interest, nor has he returned my capital. 

A couple of weeks ago the Company went into liquidation. This is due to the debts it has to multiple lenders. Having experienced these situations before, the liquidation/administration process is likely to drag on for years and I'm unlikely to get anything back.

Therefore, I wish to enforce the personal guarantee I have. However, I've never had to do that before. I've Googled phrases like "enforce personal guarantee" and various variations of that phrase, but the majority of webpages that appear in the search results guide borrowers on how to wriggle out of their personal guarantee liabilities. It's made me quite worried. I can't find anything much in terms of how to enforce a personal guarantee.

I imagine I could hire a legal firm, but my experience of lawyers hasn't been great in the past and don't want to pay them thousands of pounds at their hefty hourly rates if I can avoid it. However, if that is the only/best option, I'm willing to take the hit and would appreciate any recommendations of who I may contact.

The Insolvency Service told me I may be able serve a statutory demand myself, so I'm wondering if that's a route I should take. I'm not sure if that's the first formal step one should take (subsequent to sending formal demand letters, which I've done) towards enforcing a personal guarantee?

Also, I have grown to discover the Director in question is a very devious and slippery character and if I go it alone, I'm wondering if it'll put me in a weak position and much more likely to fail in my quest to get my money back?

Another option I've considered is a debt collection firm - or a law firm - that may be able to take my case on a 'no win no fee' basis. Do they take on cases like mine? If so, do you have any recommendations of firms please? Feel free to DM me if you're not allowed to make any suggestions publicly on these forums.

I'd very much welcome any guidance you may offer as I'm quite lost. The borrower has been making a fool of me for over a year and this long-standing situation is continuing to cause me infinite distress.

Thanks very much in advance.

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Somebody has been owing me money for more than a year now. I made the loan to him via a Loan Note (Mini Bond).

 

I have chased him up for the money dozens of times, but he has used every trick possible to give me my money back.

I need to enforce the Personal Guarantee he gave me now.

Does anybody know any proactive and effective debt collection or law firms that may be able to take on my case on a 'no win no fee' basis please? That would save me paying on an hourly rate, at hundreds of pounds an hour to a legal firm.

Many thanks. 

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This site would not allow any recommendations for Solicitors or Debt Collectors to be posted.

 

If you can issue a County Court claim, you can do this yourself.  It is whether the debtor would settle any CCJ.

 

How much does this person owe you ?

 

Did you get the personal guarantee agreement drawn up properly with any legal advice.  Was it a witnessed agreement ?

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We could do with some help from you.

PLEASE HELP US TO KEEP THIS SITE RUNNING EVERY POUND DONATED WILL HELP US TO KEEP HELPING OTHERS

 

 Have we helped you ...?         Please Donate button to the Consumer Action Group

 

If you want advice on your thread please PM me a link to your thread

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Threads merged.

 

go get a ccj you have a signed personal guarantee, then when you win send in the HCEO's. Everything else is useless.

 

Dx

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please don't hit Quote...just type we know what we said earlier..

DCA's view debtors as suckers, marks and mugs

NO DCA has ANY legal powers whatsoever on ANY debt no matter what it's Type

and they

are NOT and can NEVER  be BAILIFFS. even if a debt has been to court..

If everyone stopped blindly paying DCA's Tomorrow, their industry would collapse overnight... 

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OK, if you looked to try to make the debtor bankrupt, where do you think you will be in the line up of creditors trying to recover money ?

 

And is it worth the cost, if you had to go to Court ?  Of course you can issue a statutory demand as a way of applying pressure, but don't you think the debtor will realise that it is an empty threat because you won't continue the process ?

 

I would think gaining a CCJ would be first step.

 

 

We could do with some help from you.

PLEASE HELP US TO KEEP THIS SITE RUNNING EVERY POUND DONATED WILL HELP US TO KEEP HELPING OTHERS

 

 Have we helped you ...?         Please Donate button to the Consumer Action Group

 

If you want advice on your thread please PM me a link to your thread

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