LTD CO OR INDIVIDUAL WHO OWES THE DEBT

cibachfi

Free Member
Apr 14, 2011
11
0
Hi

Established a lt comapny with my brother then three months later were offered a loan for the business by Carlsberg. We informed the rep that we were a ltd co but were told that was no prob and we promtply and stupidly signed. We now cannot pay the loan back as the business is on the market. We have offered to pay the loan once the business is sold but they are not happy with this. we both signed a an angreement for this loan but were not asked for any personal guarantees .and did not give any. The repayments came from our business account which is clearly a ltd co account however that is not relevant and we have been held responsible for the debt, is this correct. My house is secured against the loan for the business but my brother has just put his house on the market and has equity of 200,000. The loan is for 34.000. I have not money to pay off any interim payment or installment until the business is sold but my brother has equity in his house. They have applied to ccmcc for judgement and I have not defended it as we owe them th emoney but had hoped the ltd co would owe them. If my brother has equity in the house are they liable to make a charging order against his house or what are the other possibilities that can happen in the judgement. There is no point putting a charging order on my home as the bank own it as security and I am making repayments to them every month in order not to lose my home obviously.
 
All that gobbledegook seems to mean that you put your house up as collateral for the loan.

If you put your house up a collateral for a debt and you fail to honour that debt, the creditor can force the sale of the house. That is what the whole business of offering collateral means.

And I would not count on any business being sold any time soon.
 
Upvote 0

Newchodge

Moderator
  • Business Listing
    Nov 8, 2012
    22,696
    8
    8,012
    Newcastle
    You promptly and stupidly signed what, exactly?

    When was the county court claim issued, and who was it issued against?

    What was the loan for? And, it may be different, what was it used for?

    What is ccmcc?

    If there was no personal guarantee, how can your house be secured against the loan.

    Please, take a deep breath and try to explain what is going on in single paragraphs covering each point.
     
    Upvote 0

    Latest Articles

    Join UK Business Forums for free business advice