Personal Guarantee – guarantee settlement agreement
Guarantee reduced settlement agreement – client saving 59%
Our client had a property portfolio which he had gradually reduced, leaving a bank debt of £135,000. The remaining property and the bank debt were in the name of his company although he had personally guaranteed the loan.
Unfortunately the final property value was much less than the outstanding loan balance. Our client was concerned about his liability to the bank, given that he would personally have to repay any shortfall.
Following our review, we agreed settlement terms with the bank whereby the client would obtain a buyer for the property at the best price obtainable, which was about £50,000. In addition the client would pay a further £5,000 to the Bank as final settlement – a client saving ₤80k or 59% of the original debt