Personal Guarantees - Best Way to Deal with Them?

[Nuttymut]

This is my first post.

 

I've had mental health problems for 40 years since I was 11. They have sabotaged my life.

 

In May my GP finally accepted that I have a rare sleep disorder and prescribed additional medication.

I've been back at work since June although I am still learning to cope with my condition

and I've additional help to come this year in the form of psycotherapy.

 

Lovely

 

In 2007 I put a company I ran into voluntary liquidation.

 

I had signed some personal guarantees with two companies.

They went to court and have Restrictions on the jointly owned home.

 

I ran up some credit card debts at the same time (in my now ex partners name).

I am reasonably sure I can remove them this year with full and final settlements.

 

The debts were

 

Company 1 - £43K (interest now added)

Company 2 - £36K (interest now added)

 

I wasn't able to attend court to defend the charging orders. Far to ill. Only really understood how ill I have been in the last month.

 

The family home is now going through contracts to sell.

 

My solicitior asked for redemption statements from the two companies.

I understand that his proactive approach may well have not been in my best interests.

I have asked him to inform me how that can be mitigated.

 

I want to understand what options I have to deal with these two debts please.

 

My equity in the home is £25K so I will not be able to pay off either creditor in full

and I have a seven year old daughter to think of.

 

And before anyone berates me for running up credit card debts in my (ex) partners name

I am ashamed of that and I am sorting that out from my own pocket.

I've not been in the best place to make good decisions due to depression and sleep deprivation.

 

Thank you in advance for any help / advice.

 

Nuttymut

[citizenB]

Hi Nuttymut, I am pleased to see that you finally managed to log into CAG

 

Rest assured, no one on CAG will berate you .. we are here to help and not be judgmental.

 

Meanwhile, I will try and find someone who might be able to help with your queries .

[Nuttymut]

Bless you

[citizenB]

[caro]

What else could your solicitor do? This is exactly what charging orders are for.

 

I am not aware that companies will accept F&F settlements when they've been to court and got a CO.

Edited January 4, 2015 by caro

[stevemLS]

The solicitor was under a professional obligation to deal with the restrictions.

 

Ultimately, if you can't get them removed it will prevent you from selling the house, you will not have good title on it. As caro says, it is unusual for a company to accept a full and final offer when they have security for the debt.

 

Sorry I can't offer anything more positive.

[steampowered]

Once a charging order has been obtained the debt is secured against the property. If the 25k equity doesn't take into account the charging orders then your property is in negative equity and if you proceed with a sale I don't think you'd get anything from it. You can contact the creditors and see if they would accept a lower lump sum to remove the restriction and see what they say (it might be best not to say anything about the forthcoming sale).

[Coughdrop]

I had a CO removed by a company on condition I paid a percentage of the debt. The remainder was written off, so it is possible.

 

At the time, the company was aware that if they didn't accept that, they would probably have got nothing as I'd have had to go bankrupt, I don't know if that influenced anything.