Capital on Tap - personal guarantee on LTD loan - LTD sold - loan payments stopped

[robieSS]

Hello everyone.

This is my first post.

I've found a lot of valuable information here and would like to ask for help as I'm expecting to be hit with some unpaid debt.

Here's some context:

I've been running a LTD company since 2012.

In 2020, I opened a line of credit with Capital On Tap for £17k.

Currently, there's around £8,500 left to pay.

The LTD company was sold in November with all its assets to a new 100% shareholder. It looks like the new owner will not be making any more payments.

After two missed payments, they will pursue me, as stated in the personal guarantee I signed.

I've moved since opening the account with them.

I'm currently unemployed and don't have a main address, staying with friends.

I don't own any property and my bank account has only a few pennies.

If the payments are not made by the LTD company, what should be my course of action?

I won't be able to receive any letters as the address they have is outdated.

[dx100uk]

not a lot they can do......

you sold the company so are not longer a director so the PG is now useless.

dx

[robieSS]

Thank you very much for your input, dx100uk.

Could you please elaborate a bit more?

I've been having sleepless nights over this issue.

I was under the impression that a personal guarantee (PG) has nothing to do with a limited (LTD) company, and that they would try to recover funds from me personally.

When I created this post, I was seeking guidance on my initial steps for when they begin the process and use their power to obtain the funds from the guarantor.

[dx100uk]

you are not longer a director or whatever on companies house,  the business was sold (inc all its debts and assets), the PG is no longer enforceable as you signed the PG as a director of the ltd company.

and its really nothing to do with the above, COT have just sold a whole portfolio of these debts to azzurro , there are about 10 here now already.

and anyway, if thats not quite correct, theres stuff all they can do, you've no assets no address, a CCJ (which is all they can do)  would be useless to them. they cant raid bank accounts seize goods etc etc

debt in this country is not illegal and it is not a crime.

forget about it 

sleep easy.

dx

[Ethel Street]

@robieSS it would be helpful to see the wording of the guarantee. Can you upload here please with all details and reference numbers that would identify you or the Ltd company covered up

[robieSS]

@Ethel Street Thank you very much for your interest. Here is the pdf file. i deleted all the personal and comapny information 

capital.pdf