Personal guarantees given in the past to support corporate borrowing may well have been put in a drawer with no real expectation that they would ever again see the light of day. In these challenging economic times, however, more and more of them are being dusted down and used by lenders to recover unpaid debts. At this point the guarantee may be subject to a great deal more scrutiny than when it was given, with the guarantor (often a company owner/director) looking to avoid or reduce any liability and the lender conversely wanting to ensure that it maximises its recovery under the guarantee.
Pitmans’ Private Client team expertly advises families on Wills and succession planning.
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