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Personal Guarantee debt and Mental Health

Debt and mental health are often linked with one more often than not being a symptom of the other. Anxiety and depression can be brought about and amplified by what seem to be constant demands for payment under personal guarantees following the collapse of a business into insolvency.

The process of losing a business can be for many like losing a part of themselves. Many Directors place their heart and souls into their companies and have spent years nurturing them for the benefit of themselves and those around them. Any insolvency action therefore can bring about feelings of loss, shame and failure and which manifest themselves in mental health deterioration and sometimes thoughts of suicide. In turn, these feelings can impact upon a Directors home life and relationships due to the uncertainty, demands and processes surrounding creditor collection methods; particularly so when a Director’s personal cash flow may potentially have severely been restricted.  

The current global climate and outbreak of Covid-19 will no doubt be placing additional stress and strain on business owners with the threat of insolvency and cash flow issues being a real concern. The future of the business itself is potentially in jeopardy and that coupled with the weight of expectation of family, employees and many others who depend on the company’s survival to provide in a time of uncertainty, can be a real driver for the onset or the worsening of mental health issues.

Help is always available and it is important to reach out as soon as possible. The sooner contact is made with an organisation who can assist the sooner that those organisations can try and relieve some of that burden.

The following links may be useful:


Money Advice Service



Article written by Faye McCarron

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