• Directors’ Personal Guarantees
• Company Directors are often required by companies to provide personal guarantees for either :-
• Company loans
• Purchase agreements for equipment
• Trade Credit accounts
• Rent agreements etc

When the director gives the guarantee, if the company defaults on the agreement, the directors are liable under the guarantee.

We have seen a rapid rise in Statutory Demands relating to:- Company PG’s

Creditors are reluctant to proceed against a Limited Company since the Covid-19 outbreak and the

Corporate Insolvency and Governance Act 2020.

Even if the company is still trading Creditors are issuing Statutory Demands against the Directors without even proceeding against the company first as they must see it as easier target to get paid.

2021 will be a hard year for many businesses and Government help will eventually fade leaving Individuals exposed to debts that they never thought they would chased for.

Can we Defend Your PGs based on a company debt when a Creditor dos not or cannot pursue the company “YES”

As with many PG agreements written they have not allowed for a change in the market and sometimes they fail update their terms & conditions or they way the agreement is written.

We have had opinions from two barristers and have formulated a method of identifying whether a PG is defendable or not.

We have listed some the common defences and if you identify at least one you could have a case

PG- Company lease with signed PG (requires 2 signatures one as director the other as individual)
PG- Signed by wife/partner not involved in the business (hence no Consideration)
PG- Signed under Duress.
PG- Requires prior notice of breach of the PG before a statutory demand
PG- Look at how the notice of breach must be sent/post/fax/email/
PG- Is it a Liquidated Sum Payable Immediately under section 268(1)
PG- Where was it signed
PG- Company (was there any attempts made by the creditor to pursue the company prior to sending a demand)
PG- Company in Liquidation (statutory demand sent via the Insolvency Practitioner)
PG- Was there a collateral warranty.” Do not worry we will never enforce it ,it is just paperwork so there is no need for you to take advice”
PG- No “Consensus ad idem” where there is a common understanding in the formation of the contract.

How it Works and Costs

Fixed Fee £495.

We will request and read all your documentation related to your Demand and PG.

We will establish if you have grounds to defend the statutory demand using the   guidelines obtained in the barristers ‘opinion.

If you have NO defence to the demand YOU WILL BE REFUNDED IN FULL.

If we are confident that you DO have grounds for a defence and you have case with a good chance of success, we can then proceed as below.

• Our process is in accordance with requirements within the Court Protocol. The Protocol states that the Creditor is to be given notice well before the 18 day time limit that you have a defence and that you intend to make an application to the Court for a Set Aside Hearing if the Demand is not withdrawn or they will be liable for costs.

Our Fixed fee is to cover the cost of:

• Statutory Law will formulate your defence in response, and submit the defence to you to check and

• Statutory Law will submit your defence direct to either the Creditor or their Solicitor/Debt Collector once you have authorised us to do

• Statutory Law will respond to any correspondence from the creditor or representative and update you on the progress.

• If the demand is withdrawn, that is the end of Stage 1. (70% withdraw at this stage)

• If the Creditor has responded to our letter and they provide further evidence for the debt and intend to continue with the process.

• We will give you the option of Stage 2making an application to the Court for a Set Aside Hearing.(within the 18 days of service of the demand)

Based on the response from the creditor our solicitor could take your case on a No Win No Fee agreement or a Private Client Retainer for Stage 2

The solicitor you instruct will take a statement from you and make an Application to the Court for a Set Aside Hearing

IF NONE OF THE ABOVE JUST ASK NIGEL : 07977 923 298 OR Email: nigel@statutorylaw.co.uk