Personal Guarantee

[Scaff01]

I was asked to sign a guarantee on behalf of my wifes company, I was told it was not a personal guarantee and it was just to open a trade account, It does not mention my name or position in the company and i am not guarantor but i signed it on behalf. Does this make me liable for the companies debt?

[ChuckFickens]

What did it say in what you signed? you did read it first, didn't you?

[Scaff01]

It said sign on behalf of the guarantor and the guarantor was the company itself.

[solvitquick]

Always read a contract STARTING AT THE END - that's were the sting is. Never sign anything you don't understand without legal advice. Your being asked to sign does not make sense. I hope you have not been suckered! What does your wife say. Who owns the house - you, her or both?

[Scaff01]

I do.. i just dont bunderstand because i was not the guarantor i just signed it on behalf of the company. surely if it was a personal guarantee it would have something in there that mentions me personally and say that i agree to personally pay the debt if the compay falls into arrears? it mentions non of this.

[Infomaniac]

So are you being asked to pay any of the company's debts?

[Canary42]

I expect so, why else would they want it ?

[Scaff01]

Yes i am the company has gone into liquidation because hired material was stolen and the cost bankrupted the company and they are now chasing me personally. they did not leave me with a copy of said guarantee as they said it was just to open the account and we have now been sent a copy after threatening legal action.

[boxtops]

If you signed it on behalf of the company then the company you signed on behalf of is responsible for the debt. You signed to say that you (representing the company) were guaranteeing your wife's account. IMO.

[Scaff01]

That was my thinking, but they are saying that it is a personal guarantee even though it does not mention me personally anywhere in the document.

[IggyB]

Tell them to send you a copy, if it is as you describe then you can ignore them, if it is as they describe you may be in some difficulty

[IggyB]

Sorry I see that you have a copy already. I am a bit confused about the circumstances of your signing this guarantee, it would not make sense to set up a guarantee between the supplier and the customer (your business) as that offers the supplier no more security than the original contract. Instead the supplier would seek to spread their risks by seeking a guarantee from another individual to pay the bills is the original party to the contract failed. From your description it sounds like you personally have agreed to cover these bills if you have signed such a document. That said only you can see what had been agreed, it might be best to pay a solicitor to go through it with you?

[solvitquick]

Does it mention "terms and conditions" and not include them in this dubious affair?

[solvitquick]

You said it was your wife's company in your first post. Now you vaguely imply "you are the company"[?!!??). Maybe not only a laywer but a doctor as you seem to you seem to be have dimnished powers of rational action e.g Answer Bank rather than tackle facts as a rational "business" person.

[themas]

1. If you don't have a copy of this document you must ask for one. You can't do anything without it.

2. Who is trying to claim the money from you personally?

3. Was the company a limited one? Were you a director? Was your wife a director?

4. Who asked you to sign the document and why?

5. Were you working for the company? If so in what capacity? If not, why were you asked to sign & why did you agree?


These are just some of the questions you may be asked if you see a solicitor about this (as you may well need to). If you can post answers on here you may be able to get a bit of more informed advice. My initial reaction on reading your question was that you could not be personally liable for a guarantee which did not mention you by name as a guarantor, but the precise wording of the document & the circumstances in which you signed it is vital.

[solvitquick]

Despite mine and others bleak prognoses I can offer one vague bit of hope, if that! Get ALL info together, consult business lawyer and he/she might be able to show that the document you signed was not legally valid. But it's still sounding a mess. "I was asked to sign...."---"on behalf of..". By whom EXACTLY? Are you sure the Official Receiver is not involved?
Most Important do not sit in front of your PC waiting for ABers for a golden solution. Get off your ass and get out tomorrow (Tuesday) at 8.30 to every financial/legal advisor/accountant you are aware of. As a business man or associate you must know some contacts!

[tonywiltshire]

It is not understood why some people find the need to try to be personally offensive when providing information it seems to achieve nothing.
Firstly obtain a copy of the agreement and establish if it is a regulated consumer credit agreement which will be governed by the Consumer Credit act 1974, under which there is a duty to supply a copy of the executed agreement to you as guarantor, if you have signed as a personal guarantor (second purchaser) you will have agreed to make the necessary payments should the customer fail to do so. If it can be shown the creditor has not properly explained that you would be equally liable for the total debt, this will assist your position.
I think you need professional advice as soon as possible.

[solvitquick]

From tonywiltshire's post, I can only deduce [by subtraction of other attempted helpers and friends, like me] he refers to some of my comments as "personally offensive". If so, and tony's probably right, I apologise to Scaff01 and all. Not meant in any hostlie way but at times sometimes we ALL need shaking out of traumatic shock back into the cruel of world reality.
I sometimes wonder whether this is a a deliberate cryptic puzzle. If it is, I am hooked (lol), notably by Scaff's many-times reticence to answer colleagues simple questions. To add to my confusion was Scaff's innocent grammatical error [my specialism as well] in the sentence : " Yes I am the company has gone into liquidation.....". Very late I realise that "Yes I am" is an answer to Infomaniac's question: "So are you being asked to pay the company's debts". Unfortunately this is not separated from the rest with a stop - thus implying Scaff was the company or rather "his".
So correct me if I'm wrong anyone, on SPECIFIC FACTS and not nitpicking sniping at spelling etc. The situation is that Scaff's wife is a sole trader and Scaff's role, if any, in the company is not yet determined i.e. as executive, non-executive director, consultant, accountant etc. The house belongs to him but the company's base may or may not be at that house. Scaff's wife, despite owning the company, has not elucidated him on his legal/financial situation. Sorry Scaff and ABers but there is more to come from me below, after my parting to words to Scaff (for now): "It's better to be questionned by friends like us and your lawyer than aggressively CROSS-questionned in a Court of Law where you may then innocently fold".