It is important to understand the difference between…
- a formal demand, which is a letter from the lender calling in the guarantee; and…
- a statutory demand, which is a formal legal document leading to bankruptcy proceedings if not dealt with.
If you are unsure whether you have received a statutory demand rather than a demand for payment you need to read this page first.
Demand for Payment
A demand for payment is the first stage of the lender claiming your personal guarantee. Some banks and financial institutions are more aggressive than others, and their debt collection methods determine the extent the process may be accelerated.
The ability for an organisation to enforce the personal guarantee will be critically determined by the circumstances under which it was signed, and any verbal assurances provided by representatives of the lender before, during and after that time.
It is important to understand the difference between formal demand, which is a letter from the lender and a statutory demand, which is a formal legal document leading to bankruptcy proceedings if not dealt with.
Our vast experience over many hundreds of personal guarantee cases gives us a unique, specialist knowledge in this area. So, if you have received a formal demand for payment the time to act is NOW – don’t be an ostrich, contact us today.
If you have received a formal demand for payment the time to act is NOW.
If you have received a statutory demand or are involved in court proceedings please please contact us urgently.