Our Insolvency Law Solicitors Reduce a Personal Guarantee Claim to a Fraction of the £600,000 claimed for
As insolvency law solicitors, we regularly act for clients who have received claims, following liquidation, relating to personal guarantees they have made on behalf of their businesses. In this case, we are delighted to have received this testimonial from a client whom we helped significantly reduce a personal guarantee claim, to a ‘fraction’ of the original that arose from a lease agreement. The claim could have been as high as £600,000, and the outcome brought a period of significant stress to an end.
Our Client’s Testimonial
“Our company had to enter liquidation after accruing a large debt to its landlord and other creditors during a period when the company was forced to cease trading due to COVID-19 regulations.
After the company entered liquidation, we were pursued personally by the landlord as guarantors to a lease between the company and the landlord.
We were extremely concerned and contacted Thomas Riley and Iain MacDonald at NDP (Iain MacDonald being a specialist in the law of personal guarantees) for urgent advice. They swiftly advised us on the merits of our defence, which made us quickly realise the true extent of our exposure under the personal guarantee provisions of the lease, which we were thankful to NDP for clearly explaining to us.
Our exposure under the lease was large and could have resulted in claims against us for over £600,000, which would have resulted in all our assets, which we had spent our whole working career building, being lost.
NDP gave us a clear strategy moving forward and delivered it very well. The claims were eventually settled for a fraction of their total value. Although the settlement sum was still a large amount of money to have to pay, the outcome was a liberating result in comparison to the initial value of the claims against us.
This was a distressing period for us and we were glad that we contacted Thomas Riley and Iain Macdonald of NDP, who immediately put us at ease and made the situation much more bearable. We would like to thank NDP for their legal services and would happily recommend them to others who require their services.”
Contact our Insolvency Law Solicitors in Birmingham for Help
Based in Birmingham but offering insolvency law help and advice across the country, our insolvency law solicitors can help if you are facing insolvency related problems, including personal guarantee claims. In our experience this type of claim can come from a number of directions and we help our clients to manage their situation as positively and quickly as possible.
We regularly advise on Insolvency and Restructuring related issues and often we can provide clear advice enabling directors not to fall into the often highly technical traps set for the unwary. Click here to see an article where we detail how to legally challenge Personal Guarantee claims.