The director’s business was placed into liquidation and soon after he received a demand from the bank with respect to £25k on a personal guarantee.
The bank had quickly sent the case to a debt management company to chase and it took some considerable time for that company to provide the relevant documentation from the bank.
Even then the documentation was incomplete but our client was keen to have some sort of arrangement in place.
The debt management company agreed a monthly payment plan of £25 for the first year which has subsequently been increased to £50, reflecting our client’s circumstances.
This depicts anecdotally how we find these situations run in that internal bank debt management departments tend to be slower to respond and harder to do deals with, while outsourced debt management companies tend to be more aggressive communicatively but better geared to getting an agreement in place.