Litigation Resulting From Business Debts
It is common for owners of businesses to personally guarantee payment of business debts. Until recently, the guarantee may have been of low importance because businesses generated enough revenue to meet their obligations. However, the economic turndown of the past few years has caused many creditors to call in personal guarantees. This may follow a default in payment or where a business has faltered. However, it also happens in times of recession where a bank or other lender has become "nervous" about its exposure or changes its lending criteria. Most personal guarantees are repayable on demand and the creditor can call in the debt at any time without good reason or explanation.
Rollingsons Solicitors is a commercial law firm serving clients in England, Wales and throughout Europe. We have expertise in advising creditors and debtors about personal guarantees. Our experience in advising parties on both sides of disputes means that we can anticipate our opponent's case and build the strongest possible arguments, whether in claiming or defending sums pursuant to a personal guarantee.
This field of law is complex and changes frequently. You can be assured that our London personal guarantee solicitors are hugely experienced and equipped to handle the most complicated matters.
For Creditors
As a creditor, you deserve to be paid for the product or service you have provided. If your debtor personally guaranteed the debt, we can help you understand your options and create a strategy to collect the debt. Every case is different. Sometimes, an aggressive approach is the right option, which may include the service of a statutory demand. In other cases, a more co-operative approach may be appropriate; for example where you want to preserve a business relationship with the debtor, or if you have concerns about the debtors ability to pay. When you speak with our solicitors, we will assist you in creating a collection strategy that meets your needs and goals.
For Guarantors/Debtors
If you have received a demand for a personally guaranteed debt, the first thing to remember is not to panic. You should refrain from admitting liability or giving any detailed information to the creditor. There are many technical and legal defences which can avoid your liability for the guarantee altogether so you may be in a much stronger position than you think. Alternatively, we can assist in negotiating with your creditor to reduce the debt, to limit liability for interest, or to ask for more time to make payment. If required, we can assess your overall financial circumstances and give you insolvency advice, including presenting a voluntary arrangement to all your creditors.
Contact a UK Litigation Lawyer
If you call one of the experienced personal guarantee solicitors here at Rollingsons, we can assess the situation and help you with appropriate action. We will help you understand the situation fully and suggest the course of action that we think is in your best interest.
Whether you have personally guaranteed a debt or need help in collecting a debt, a solicitor at Rollingsons can provide the efficient, comprehensive legal service you need. To arrange a free, no-obligation consultation, please call 020 7611 4848 or contact our London law firm online.
