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Scottish Trust Deed Forum
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Topic starter
10/03/2014 10:49 pm
I am a director of a limited company. My fellow director entered a trust deed two and a half years ago. As far as I know the company debts were not included as the company was trading and paying its debts. We have both signed personal guarantees to the bank but the bank has not yet demanded payment of the debt from us although they have now asked for full payment from the company. Will the guarantee debts have been included in my fellow director's trust deed and written off when his trust deed ends or will he still have to pick up his share if the business cannot continue to trade?
10/03/2014 11:04 pm
Hi Jkaren
Was the trust deed signed after the personal Guarantee or before it?
Mark
Mark is not posting regularly in the Trust-deed.co.uk forum.
Topic starter
11/03/2014 11:24 am
It was signed before the Trust Deed but the Bank had not and still as yet has not called on us as guarantors to pay.
11/03/2014 12:32 pm
Hi Jkaren
The Trust Deed will almost certainly kill any right for the bank to pursue the debt in terms of the Personal Guarantee as it was signed before the Trust Deed was signed.
The date of the calling up of the guarantee has no real bearing on matters unfortunately. The guarantee will be signed for specific and future borrowings of the company and therefore will fall as a contingent debt in the Trust Deed ie a debt which cannot be quantified at the date the Trust Deed was signed.
Mark
Mark is not posting regularly in the Trust-deed.co.uk forum.
11/03/2014 4:19 pm
On the successful completion of a protected trust deed, you are discharged from all liabilities and obligations which existed prior to the trust deed being signed. A personal guarantee signed beforehand would be one such obligation.
Have you had any advice yourself about your options, Jkaren, or the company's options?
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