Other than bank guarantees, this is probably the most common form of guarantee provided by directors. As for bank guarantees, the vast majority of the guarantees are enforceable.
Usually following liquidation, financed assets are collected and sold. Unfortunately, the second hand market for commonly financed equipment is generally poor and realisations fall short of the amounts outstanding. Charges are also applied to the account which can be considerable.
Once demand is received it is important to take action and not simply hope that nothing will happen – it will. Taking specialist advice is essential; is the agreement valid, if so, have interest and charges been correctly applied? Have the assets been disposed of for best value?
Call us to discuss your situation and we will do our very best on your behalf.