You may have signed a Personal Guarantee, also known as director guarantee, but you wish to extract yourself from it. Perhaps you are no longer involved in the business or you have concerns surrounding the business or Personal Guarantee itself.
Even if you have resigned as a director and you signed a PG, if the personal guarantee is not terminated by yourself you will still be liable. Even if there is an undertaking by your company or your company’s purchasers to terminate the personal guarantee, they cannot do this on your behalf.
Most guarantors caught in this trap don’t know how or think they can not extract themselves.
There is some complexity depending on the type of guarantee (for example it is set out as “continuous” and other terms surrounding that) which needs to be considered properly. All we have dealt with over 13 years is personal guarantee issues and we have understand these complexities and how to deal with them along with ensuring such a termination is handled delicately to prevent unseen circumstances.
However all Personal Guarantees can be terminated including allegedly continuing ones but there are consequences and risks to understand and the methods used to terminate a Personal Guarantee can make all the difference as to those risks.
If you find yourself in a position where you need to consider extracting yourself from a Personal Guarantee then contact us to discuss it.