Personal guarantee dilemma
Discussion
A guy I know took out quite a large loan for his then girlfriend to start a business. As you can probably guess, they are no longer together and the money has gone. The business never got going and she rode off with the money.
Does he have a leg to stand on here re paying the money back, or is there any way he can ease the situation ? The money was lent on a Personal Guarantee on his house.
Any advice / experiences welcome.
Thanks
Does he have a leg to stand on here re paying the money back, or is there any way he can ease the situation ? The money was lent on a Personal Guarantee on his house.
Any advice / experiences welcome.
Thanks
He borrowed the money, secured against his property. Regardless of whether he gambled it away, spent it Aerofoil-style, gave it to Battersea dogs or wasted on it on somebody elses failed business idea is irrelevant. He will have to meet the terms of the loan agreement with his lender or face the penalties / consequences.
AnthonyC said:
The money was lent on a Personal Guarantee on his house.
I'm not sure that makes sense - if it's secured on his house, it's not really a personal guarantee but more of a straightforward charge (i.e the same as a mortgage if he had taken it out for his own benefit). A personal guarantee is usually not secured - if, for instance, she had taken out a loan and he had agreed to make himself jointly liable if she defaulted on it.
In answer to your question, it seems unlikely he has a leg to stand on.
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